Driver-Owned The Drivers Cooperative Launches in NYC

The NY Times did a feature on driver-owned The Drivers Cooperative launching this weekend in NYC. App is live in both Apple and Android stores and is called Co-op Ride

The NY Times published a piece this weekend on driver-owned ridehailing service The Drivers Cooperative as it goes live in NYC. The new driver-owned (i.e. cooperative) service is said to have recruited an impressive 2,500 drivers and is planning to pay 10% above the minimum pay standards set by the NYC Taxi & Limousine Commission (TLC). In addition, members (i.e. shareholders) of the co-op may also receive dividends tied to profits. The promise of such a service is exciting as many NYC TLC drivers would like to have more control over their income, say in the governance of the platforms they work on and equity upside!

“I’ve never seen this hunger for change that exists with drivers. Every single transaction reveals exploitation…They feel like a way to regain control is to have control and ownership over the platform.” - Erik Forman, a labor organizer and a founder of the Drivers Cooperative.

The background of the founders is interesting as well. Alissa Orlando is the former head of operations for Uber’s business in East Africa, Ken Lewis is a NYC TLC black car driver and Erik Forman is a labor organizer. The idea makes a lot of sense to me and its ultimate success, as with any ridehailing startup, will not only depend on driver supply, but passenger demand. I personally know many TLC drivers who would be attracted to a platform like The Drivers Cooperative. Given most drivers don’t have an equity stake in Uber or Lyft, helping build a new service where they have an ownership stake could be really interesting/attractive.

“Having your own business is the way forward and the way out…Even if I make less money, I will focus on the co-op to make sure we succeed.” - Michael Ugwu , TLC driver (driven for Uber in NYC for 6 years)

Starting a business is hard and making it work even harder. We wish The Drivers Cooperative well. It will be interesting to track its progress over the coming months and hopefully years!

LINK TO COMPANY WEBSITE

Link to the Co-op Ride App in Apple Store (iOS): https://apps.apple.com/us/app/co-op-ride/id1540904980

Link to the Co-op Ride App on Google Play (Android): https://play.google.com/store/apps/details?id=com.rider.coop

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