Most recently, multiple taxi and limo companies in San Antonio and Houston have sued the companies for violating local vehicle-for-hire ordinances.
Recent expansions in cities such as Cleveland have also drawn criticism due to safety and insurance concerns. The Ohio Department of Insurance issued a consumer alert advising would-be riders to use caution when deciding to use ride sharing or “transportation networking” companies.
“Ohioans considering these types of services should weigh all factors including any coverage gaps that may exist,” said Ohio Lieutenant Governor and Insurance Director Mary Taylor. “While the driver may have insurance, his or her policy may or may not provide all the coverage needed should an accident occur.”
UberX and Lyft operate by allowing people to become private chauffeurs using their own cars. Passengers hail these drivers using smart phone applications. Uber’s normal service uses professional drivers and UberX and Lyft use non-commercial drivers.
Uber has also started offering up to $100,000 for drivers between pickups to reduce concerns about liability caps. These insurance offerings were made in part due to a lawsuit filed by the Dolan Law Firm. That lawsuit involves a 6-year-old girl who was run over by an Uber driver who was between trips.
