You have heard that Uber is worth 20, 40, 60 billion, right? Let’s just say 100 billion as long as We are being ignorant. Uber and Lyft are having trouble all over the world and only making a profit in a few regions where they operate. Plenty of Cities are not running them out of town but have not allowed them to be legally operating. Everything is negative about ride share. Drivers cannot get insurance in the majority of ride share cities that cover the “gap”. The gap is the time that a ride share driver turns on His app but does not yet have a request, if He is involved in an accident at that time Uber or Lyft will not cover Him and neither will His personal insurance. In fact if a driver has regular personal car insurance He cannot use His car for ride share and be covered even if off the app because He has committed fraud. The fraud is the fact that the driver is using His car for commercial purposes and even if He has an accident off the app He can be dropped and even put in jail for insurance fraud.
Those problems are known problems for ride share but this new problem that Austin, Tx is creating will possibly put them out of business. The City will operate as a non profit and will give the drivers the same 80 percent as Uber and Lyft did but will charge 1.50 per mile which all drivers say is the amount they need to make it worth working for. If the driver is making 1.50 per mile He has enough money to get real insurance, the type that will cover Him during the gap and all other times.
But for the most part, People do not care as long as they can get a cheap deal on a ride. For many years businesses were called out for using prison labor or Child labor to make clothing, toys and other household items so congress passed laws so that it would no longer happen. So far that is no stir among lawmakers about the less than minimum wage that ride share drivers make. So why do they drive? It is like pay day loans, desperate People do desperate things to get money TODAY. A driver might drive knowing He needs money next Tuesday even though He has to ruin His car to do so.