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Background and Overview on Ride-Sharing Operations


Despite the efforts of many taxi companies, Uber and Lyft have become popular ride-sharing services that have proven to be successful. With every pro, there is a con underlying it, and this concept is no different with Uber and Lyft services. These companies offer a convenient way to get to where a passenger has to go, and inexpensive when compared to the fares of a cab, but riding in a Uber or Lyft does not prevent a person from getting into an accident. Ride-sharing has been relatively new in the market and has not been regulated, for the most part. With that being said, the insurance companies of these ride-sharing services may not want to pay for any damages that were caused by accident due to one of their employees.

There has been talk about how some Uber drivers may be underinsured, which has attracted a lot of unwanted attention. It should be the ride-sharing company’s duty to pay for the damages that were caused, but it is not a guarantee that they will pay the full amount of the damages endured such as, loss of earnings, medical bills, and more.  Therefore, more and more states are starting to rule that there is a duty to the passengers that choose to use these ride-sharing services and that they must comply with the same requirements that a taxi driver undergoes.

The Operation of Ride-Sharing Companies

The way these companies function in contrast to a conventional taxi company is important to understand in order to comprehend the risks that can be associated while using a ride-sharing service.

Mounting a taxi brings a sense of relief because the passenger knows that the licensed taxi driver is employed by a taxi company, which is going to be fully insured for any type of accident that was to occur. The drivers for Lyft and Uber are hired through what is known as an “independent contractor”. That means that the driver is to use their own insurance liability coverage, and must be the providers of their own car.

Passengers will seek for a local driver that is free by using an app through their phones. Once they have connected, the driver will go to wherever the passenger is to pick them up. Once the driver has dropped the passenger off at their specified location, the trip will be logged through the mobile app and they would pay a 20% fare to the company. The whole process commences again to find a new passenger.

Although this system is a means to keep the costs low, it not only leaves passengers vulnerable but also the drivers and pedestrian who are alongside anyone who is driving a ride-sharing vehicle.

Uber/Lyft Accident Victim

Percy Martinez Law firm has ample experience in dealing with motor vehicle claims.  With the increasing popularity of Uber and Lyft, there will be a rise in ride-sharing accidents. The victims of these accidents need to fight against those companies alongside their personal injury lawyer. If needed, trial lawyers at Percy Martinez law firm will go up against any uber accident lawyer ride-sharing company that does not want to comply.

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