Uber and Lyft have dominated a myriad number of business discussions since 2015. What is the place of Uber and Lyft in 2017? Do these companies still have longevity? Are they still viable? Importantly, who is caring for the drivers who keep the business alive?
Uber and Lyft are probably here to stay. That may be a nightmare to some or the best news of the year for others. This Business Case Studies Blog is not as concerned with the longevity of Uber and Lyft. It is concerned with the drivers who are facing often insurmountable obstacles in the pursuit of their small business.
The issue has a lot to do with responsibility. The conversation invariably turns to insurance. Insurance companies are still omitting any coverage for rideshare. They do not have a viable platform for covering it and they do not see it as profitable for them. Small niche providers are jumping in because they see that there has to be a point where drivers can get coverage.
Furthermore, Uber and Lyft have jumped in- as they should. Both have somewhat specific and confining insurance options for their customers. In some areas, it is mandatory for drivers to have the insurance coverage added. This is part of the agreement which allows Uber or Lyft to be in the area (business economics are still toiling over this in many cities). The trade-off is the insurance. Drivers must be accommodated, and the bill is on Uber and Lyft accordingly.
Rideshare “delivery” is changing in a big way because these two companies are becoming more ingratiated and accepted. This forces insurance companies to take initiative in some way or leave a big opportunity sitting on the ground ready to be scooped up. Motorcycles and cars make for great delivery vehicles and auto insurance companies should see this. They cover auto, after all.
Delivery is not confined to people. Products can also be delivered, of course. New somewhat small providers are offering delivery services that have never been available for. Grocery delivery is now more freely available than ever, and this will certainly play out in the insurance space in the next few years.