Lyft and Sidecar have described their services as “ride-sharing.” They’re not taxi companies, or even a driving service – instead, they provide “marketplaces” where drivers can offer their services and users can get a ride. Lyft even goes so far as to describe their users, on both ends, as a “community.” It’s “your friend with a car,” according to the website – not a driver you’re hiring.

Critics, see this as deceptive. You pay a “suggested donation” to your Lyft driver, for instance, and if you don’t pay it, you’ll be blocked from the service.

The insurance gap came to the public’s attention at the beginning of this year, when Syed Muzzafar, an UberX driver in San Fransisco, struck an entire family with his Honda SUV, killing six-year-old Sofia Liu. Liu’s family has filed a wrongful death lawsuit against Uber, though Uber is denying that it is liable for any damages.

Government agencies and regulators overwhelmingly agree: Uber is a taxi company, whether they like it or not.

J.C. Pollack

Ann Arbor