Ridesharing company

A ridesharing company (or ridehailing service) is a company (or service offered by a company) that, via websites and mobile apps, matches passengers with drivers of vehicles for hire that, unlike taxis, cannot legally be hailed from the street. The vehicles used in ridesharing/ridehailing service are called app-taxis or e-taxis.

Ridesharing companies were founded beginning in the 2010s, after the proliferation of the Internet and mobile apps.^[1] In the 2020s, a few companies began offering rides in self-driving taxis.

The legality of ridesharing companies by jurisdiction varies; in some areas they are considered to be illegal taxi operations, while in other areas, they are subject to regulations that can include requirements for driver background checks, fares, caps on the number of drivers in an area, insurance, licensing, and minimum wage.

Studies have shown that ridesharing companies have created net jobs^[2] and improved the efficiency of drivers of vehicles for hire due to advanced algorithms that pair riders with drivers.^[3] They have been subject to perennial criticism for seeking to classify drivers as independent contractors, enabling them to withhold worker protections that they would have been required to provide to employees.^[4]^[5] Studies have shown that especially in cities where it competes with public transport, ridesharing contributes to traffic congestion, reduces public transport use, has no substantial impact on vehicle ownership, and increases automobile dependency.^[6]^[7]^[8]

^ Chan, Nelson D.; Shaheen, Susan A. (November 4, 2011). "Ridesharing in North America: Past, Present, and Future" (PDF). University of California, Berkeley. Archived (PDF) from the original on February 4, 2014.
^ Gaskell, Adi (January 26, 2017). "Study Explores The Impact Of Uber On The Taxi Industry". Forbes. Archived from the original on April 19, 2022.
^ Cramer, Judd; Krueger, Alan B. (May 2016). "Disruptive Change in the Taxi Business: The Case of Uber". American Economic Review. 106 (5). doi:10.3386/w22083.
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[Future-1] Chan, Nelson D.; Shaheen, Susan A. (November 4, 2011). "Ridesharing in North America: Past, Present, and Future" (PDF). University of California, Berkeley. Archived (PDF) from the original on February 4, 2014.

[2] Gaskell, Adi (January 26, 2017). "Study Explores The Impact Of Uber On The Taxi Industry". Forbes. Archived from the original on April 19, 2022.

[3] Cramer, Judd; Krueger, Alan B. (May 2016). "Disruptive Change in the Taxi Business: The Case of Uber". American Economic Review. 106 (5). doi:10.3386/w22083.

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Ridesharing company

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