SAN FRANCISCO (Reuters) – Using mobile apps to connect passengers with drivers, ridesharing services like UberX and Lyft say they are bringing new zip to transportation. But a number of cities say they don't want to share the road until they get something utilitarian: better insurance.
If the cities insist, they could slow or halt the services' expansion. The conflict poses the latest challenge to the nascent "sharing economy," which allows people to rent out personal property and services, often on an ad hoc basis.
On one side stand the ridesharing companies, which believe their business plans are undermined by forcing drivers to add higher-cost commercial insurance to services intended to attract casual drivers for an hour here and there.
On the other stand many city officials, who worry that ridesharing lacks adequate coverage.
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