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 traditional taxis, cannot legally be hailed from the street. In most cases, the company sets fares, which may vary using a dynamic pricing model based on local supply and demand at the time of the booking and are quoted to the customer in advance, and receives a commission from each booking. Some ridesharing companies provide services in robotaxis.

Ridesharing companies proliferated in the 2010s due to the growing use of mobile apps.

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. Countries including Bulgaria, Germany, Denmark, Hungary, and Jamaica have issued bans or extremely strict regulations such that no ridesharing companies operate within.

Ridesharing companies have been subject to lawsuits for seeking to classify drivers as independent contractors, enabling them to withhold worker protections that they would have been required to provide to employees.

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