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Uber and Lyft use the ownership of smartphones to connect passenger clients to their ridesharing service. To put it in simpler terms, they offer personal transportation services that can be requested with the push of a button (on an app).
Once a ride seeker has made a request, the closest available Uber vehicle is notified and sent to his or her location. It's as simple as that. This certainly beats having to call or wait for a taxi and flag it down.
Uber and Lyft also price their rides at a very cheap rate, relative to taxi fees. They accomplish this by labeling their ridesharing driver as a contract worker, not an employee, which, in turn, allows them to externalize costs like gas, payroll, etc. so that profits are maximized and expenses are kept to a minimum.
Employee obligations and benefits aren't the only things they've cut down on, though; they have been able to skirt insurance liabilities as well through the use of convoluted language in their respective liability coverage policies.
Uber & Lyft Car Accident in Los Angeles: Uber's Policy and Liability Insurance
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