A driver-owned rideshare app called Co-op Ride is now available in New York City. The rideshare alternative was created by the volunteer-run Drivers Cooperative. The goal of the app is for drivers to make more money while passengers in underserved communities pay less for rides.
Co-op Ride is available in the App Store and Google Play. Because the company is driver-owned, each driver owns a share of the company, which gives them a vote in the company’s leadership and a cut of any and all profits.
According to Co-op Ride, the company takes a 15 percent commission from fares operating for operating expenses. This is 10 to 15% lower than Uber or Lyft. According to Michael Ugwu, a longtime driver and Co-op Ride recruiter, he wants drivers to know that they’re getting the maximum benefits from their labor with the driver-owned company: “This is our time to make money for our own selves, instead of enriching those giant companies. We made them giant, by the way. Drivers invested their money in big cars – eighty or ninety thousand dollars, just to drive for them, and they don’t care.”
A Driver’s Cooperative co-founder, Erik Forman, noted that every driver for Co-op Ride gets a background check and safety training as part of the licensing process through the Taxi and Limousine Commission, as well as additional training.
Researchers have found that Uber and Lyft drivers’ pay has decreased because too many drivers have been put on the road in order to reduce wait times: “We think it’s frankly reprehensible that Uber misled tens of thousands of working-class New Yorkers into investing money in vehicles and going on the road when they knew that demand would outstrip supply. We think it’s frankly reprehensible that Uber misled tens of thousands of working-class New Yorkers into investing money in vehicles and going on the road when they knew that demand would outstrip supply.”
While Co-op Ride could benefit both riders and drivers, it’s unclear what would happen in the event of an accident. If you’ve been involved in an accident with a rideshare company other than Uber or Lyft, it can be confusing to determine what your rights and options are. Our attorneys can help. Click here to schedule a free case evaluation with the Rideshare Law Group.