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Y O U N G L A W Y E R S J O U R N A L
CBA RECORD
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“Ridesharing,” most commonly known to consum-
ers under the names “Uber,” “Curb,” and “Lyft,” is an
innovative, phone application-based platform that is
best comparable to a personal, on-demand taxi service.
Offered throughout the state, Illinois boasts one of the
largest ridesharing markets in the country.
What Ridesharing Is
Industry leader Uber provides the best example of the
basic structure of ridesharing, or “transportation network
companies” (TNCs). Virtually anyone with a vehicle,
smart phone, license, insurance, and clean driving record
can open for business as an Uber driver, and anyone with
a smart phone and credit card can access the application
required to summon rides.
The phone application (App) allows for an Uber driver
to become “available” for pick-ups at their discretion.
Uber customers can view how many drivers are available
nearby, the approximate wait time for a ride, and view peer
reviews of the drivers. The customer’s location is tracked
using GPS, so the Uber driver will be automatically sum-
moned to wherever the customer is currently located at
the time of the request. The customer may also request a
pick-up at a different location, can receive rate estimates
between locations, and may split ride fares among other
Uber passengers. The passenger’s payment information is
pre-loaded into the application and no additional tips or
signatures are required at the end of the ride. Uber takes
its share, and the rest is passed to the driver.
What Ridesharing Is Not
TNCs, though comparable to taxi services, are quite dif-
ferent in their business model, leading to differences in the
legal liability of drivers and the legal protections afforded
to customers. Unlike taxi drivers that require commercial
licenses and heightened insurance requirements, TNC
drivers utilize their own vehicles and personal insurance
policies, leaving them (and their passengers) vulnerable
to gaps in insurance coverage in the event of an accident
with (or without) a passenger in the car.
Taxi drivers also have more legal protections than
TNC drivers, specifically in the City of Chicago. Chicago
adopted ordinances long ago that provide for personal
injury coverage, property damage coverage, and the pos-
sibility of workers’ compensation benefits, should a taxi
driver become injured and unable to work. TNC drivers
have no such protections. In response, TNC drivers are
rallying against the companies they work for, demanding
medical benefits, workers’ compensation rights, expanded
personal injury coverage, mileage, and improved safety
oversight.
In addition to increased legal protections for taxi driv-
ers, taxis also have fewer operational limitations than their