Other startups promise drivers will receive 100% of the fare in exchange for a subscription fee. and charges riders a bit more than a regular Uber though less than the premium-level Uber Black. Chief Executive Officer Will Coleman said the company also looks for drivers from big employers like Inc. The companies say this enables lower fares and gives drivers flexibility, but their decision has spurred lawsuits and state legislation.Īlto owns and manages its fleet of luxury cars and gives drivers hourly rates along with benefits like health care. This contractor model means drivers don’t get the security of a minimum wage, insurance, overtime pay or other benefits. Lyft takes a commission but doesn’t disclose its share. Uber and Lyft regard drivers as independent contractors. There’s a reason why no one has really come close to unseating Uber and Lyft.” And so, you could imagine for new rideshare companies it’s kind of easy,” said Harry Campbell, longtime driver and founder of the Rideshare Guy blog.

“A lot of drivers don’t feel that they are paid enough, that the commission is too high, that the companies don’t care about them. The incumbents have reported progress in luring and retaining drivers, raising pressure on new entrants to ensure they can compete. But to win market share they must confront the efficiency with which Uber and Lyft match riders with drivers, and the massive scale of those companies. The new startups can tap into that dissatisfaction.

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