Uber and Lyft extract 25-40% from every ride while drivers struggle to make minimum wage. Community-owned alternatives can provide fair wages, better safety, and local control.
The Problem with Corporate Ride Sharing
Exploitation Model
- Uber: Takes 25-40% commission, denies employee benefits
- Lyft: Similar commission structure, surge pricing that mainly benefits company
- Via: Corporate-focused model with minimal driver input
Driver Reality
- Average earnings below minimum wage after expenses
- No benefits, sick leave, or protections
- Algorithmic management creates stress and unsafe conditions
- Drivers bear all vehicle costs and risks
- Increases traffic congestion without reducing car ownership
- Undermines public transit funding
- Extracts wealth from local communities
- Creates precarious employment
Eva (Montreal)
Women-driven ride sharing cooperative
- Founded by women, for women’s safety
- Drivers are member-owners
- Flat membership fee instead of per-ride commission
- Reinvests profits in safety training and community programs
Key Innovations:
- Enhanced background checks
- Safety protocols developed by and for women
- Community accountability model
- Integration with local women’s organizations
Green Taxi Cooperative (Denver)
800+ driver-owners strong
- Drivers keep 100% of fares minus small overhead
- Democratic governance - one member, one vote
- Provides benefits and support services
- Competes successfully with Uber/Lyft
Success Factors:
- Started with existing taxi drivers
- Leveraged regulatory knowledge
- Built strong dispatch technology
- Created driver solidarity culture
- The Drivers Cooperative (NYC): 6,000+ drivers, app-based
- CabFair (Portland): Union-backed alternative
- Modo (Vancouver): Car sharing co-op expanding to rides
Phase 1: Organizing Drivers (Months 1-3)
1. Start with Core Group
- Identify 20-30 committed drivers
- Mix of full-time and part-time drivers
- Include diverse communities and neighborhoods
- Connect with driver advocacy groups
2. Understand Local Regulations
- Research licensing requirements
- Understand insurance mandates
- Learn about airport and venue permissions
- Identify supportive city council members
3. Choose Cooperative Model
- Worker Cooperative: Drivers only
- Multi-stakeholder: Drivers, riders, community
- Platform Cooperative: Tech-enabled model
- Consider hybrid approaches
Open Source Options
- LibreTaxi: Basic open-source ride matching
- Ride Austin (archived): Non-profit model code available
- Custom Platform: Use our P2P architecture guide
Essential Features
- Rider-driver matching algorithm (fair, not manipulative)
- Real-time GPS tracking
- In-app payments with multiple options
- Rating system (mutual and transparent)
- Safety features (emergency button, ride sharing)
Differentiating Features
- Transparent pricing displayed upfront
- Driver destination preferences respected
- No surge pricing (or democratically controlled)
- Integration with public transit
Phase 3: Safety Infrastructure (Months 4-7)
Driver Safety
- Comprehensive background checks
- But also paths for people with records
- Regular vehicle safety inspections
- Driver safety training programs
- Emergency support system
Rider Safety
- Identity verification options
- Ride tracking and sharing
- In-app emergency features
- Community accountability process
- Safe pickup/dropoff locations
Community Safety
- Integration with local safety networks
- Partnerships with community organizations
- Whisper network for problematic riders
- Restorative justice approach to conflicts
Phase 4: Launch Strategy (Months 7-12)
Pilot Approach
- Start with single neighborhood or corridor
- Focus on underserved areas first
- Build from community events and gatherings
- Partner with local organizations
Building Ridership
- Emphasize community ownership
- Highlight driver welfare
- Promote price transparency
- Create membership benefits
Sustainable Growth
- Expand one neighborhood at a time
- Maintain service quality standards
- Keep democratic participation
- Build financial reserves
Financial Sustainability
Revenue Model
- 5-15% platform fee (vs 25-40% corporate apps)
- Membership options for regular riders
- Corporate accounts with fair pricing
- Event partnerships with venues
Driver Economics
- Drivers keep 85-95% of fares
- Transparent fee structure
- No algorithmic wage manipulation
- Collective benefits purchasing
- Crowdfunding for initial capital
- Community bonds for expansion
- Revenue sharing with community organizations
- Local business partnerships
Regulatory Navigation
Common Challenges
- Insurance Requirements
- Form group policy
- Work with cooperative insurers
- Advocate for regulatory changes
- Licensing Mandates
- Support drivers in getting licenses
- Create study groups
- Challenge unfair requirements
- Airport Access
- Negotiate as collective
- Partner with other cooperatives
- Build political support
Advocacy Strategy
- Build coalitions with labor unions
- Partner with environmental groups
- Engage rider communities
- Create compelling public narrative
Technology Decisions
Build vs Buy vs Fork
- Build: Maximum control, highest cost
- Buy: Faster launch, ongoing fees
- Fork: Balance of control and speed
Key Technical Considerations
- Data ownership and privacy
- Algorithm transparency
- Interoperability with other systems
- Accessibility for all users
Resources
Technical Support
Organizing Resources
Funding Sources
- The Working World
- Community development financial institutions
- Impact investors focused on worker ownership
- Crowdfunding platforms for cooperatives
Get Started
- Connect with existing organizers in our network
- Download our organizing toolkit with templates and guides
- Join monthly calls with other cities building alternatives
- Share this resource with drivers in your community
Together, we can build transportation systems that serve communities, not venture capitalists.