CBA Record

Y O U N G L A W Y E R S J O U R N A L

“Ridesharing,” most commonly known to consum- ers under the names “Uber,” “Curb,” and “Lyft,” is an innovative, phone application-based platform that is best comparable to a personal, on-demand taxi service. Offered throughout the state, Illinois boasts one of the largest ridesharing markets in the country. What Ridesharing Is Industry leader Uber provides the best example of the basic structure of ridesharing, or “transportation network companies” (TNCs). Virtually anyone with a vehicle, smart phone, license, insurance, and clean driving record can open for business as an Uber driver, and anyone with a smart phone and credit card can access the application required to summon rides. The phone application (App) allows for an Uber driver to become “available” for pick-ups at their discretion. Uber customers can view how many drivers are available nearby, the approximate wait time for a ride, and view peer reviews of the drivers. The customer’s location is tracked using GPS, so the Uber driver will be automatically sum- moned to wherever the customer is currently located at the time of the request. The customer may also request a pick-up at a different location, can receive rate estimates between locations, and may split ride fares among other Uber passengers. The passenger’s payment information is pre-loaded into the application and no additional tips or signatures are required at the end of the ride. Uber takes its share, and the rest is passed to the driver. What Ridesharing Is Not TNCs, though comparable to taxi services, are quite dif- ferent in their business model, leading to differences in the legal liability of drivers and the legal protections afforded to customers. Unlike taxi drivers that require commercial licenses and heightened insurance requirements, TNC drivers utilize their own vehicles and personal insurance policies, leaving them (and their passengers) vulnerable to gaps in insurance coverage in the event of an accident with (or without) a passenger in the car. Taxi drivers also have more legal protections than TNC drivers, specifically in the City of Chicago. Chicago adopted ordinances long ago that provide for personal injury coverage, property damage coverage, and the pos- sibility of workers’ compensation benefits, should a taxi driver become injured and unable to work. TNC drivers have no such protections. In response, TNC drivers are rallying against the companies they work for, demanding medical benefits, workers’ compensation rights, expanded personal injury coverage, mileage, and improved safety oversight. In addition to increased legal protections for taxi driv- ers, taxis also have fewer operational limitations than their

CBA RECORD 39