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5 Tips to Know Before Working for a Ridesharing Company

5 Tips to Know Before Working for a Ridesharing Company

by Galen Hayes, President of Hayes Brokers, originally published on Property Casualty 360   The ads are enticing: “Make $35/hour driving with us!” “You could make $800 a week or more!”   Ridesharing services, or Transportation Network Companies (TNCs), are everywhere. Uber alone signs up an estimated 20,000 drivers each month worldwide. You have a nice car and could use extra cash. You sign up to be a driver, install the app and soon you are driving people around and making money. Too good to be true? 1) It Isn’t “Ridesharing” The term “ridesharing” is a misnomer. Ridesharing is “the act or an instance of sharing motor vehicle transportation with another or others, especially among commuters” which sounds more like carpooling. This arrangement doesn’t involve a fee or contract. TNCs use apps to connect a driver with a passenger for a fee. This is one definition of “livery.” Livery or for-hire companies typically charge a fee, and some employment contract between company and driver exists. The definitions and usage of a personal vehicle are important when determining insurance coverage and even more important in the event of an accident. On December 31, 2013, six year old Sofia Liu, her mother and her brother were crossing the street in San Francisco when Syed Muzzafar struck them in a crosswalk, killing Sofia. Mr. Muzzafar identified himself as an Uber driver and indicated that he was driving around awaiting a new transaction when the accident occurred. Uber released a statement saying that the driver was “not providing services on the system at the time of the incident.” A $20 million wrongful death...