Rideshare

Ridesharing is a transportation service in which a digital platform connects riders needing a trip with drivers using their personal vehicles. Unlike traditional taxis, ridesharing relies on private individuals who use a smartphone app to offer rides on request. The platform typically handles trip requests, route matching, payment, and ratings, while the driver earns a portion of the fare.

Most rideshare programs operate through smartphone apps that display nearby drivers, estimated arrival times, and price estimates. Drivers are commonly classified as independent contractors and are compensated from a fare after platform fees and driver earnings are deducted. Pricing often uses dynamic or surge pricing to balance supply and demand. Safety features include in-app ride verification, trip sharing, and rating systems.

Regulation and insurance vary by jurisdiction. Some places regulate rideshare as a transportation network company with specific insurance and licensing requirements; others apply taxi or private hire rules. Debates center on driver classification, worker benefits, data privacy, and liability in case of accidents.

Impact is mixed. Ridesharing can increase mobility and reduce the need for car ownership, potentially lowering transportation costs and sometimes reducing vehicle miles traveled; it can also contribute to congestion and urban noise. Critics point to variable driver earnings, job instability, and nontransparent pricing. The market is dominated by a few platforms, notably Uber and Lyft in many regions, with regional and global competitors.