A Transportation Network Company, or TNC, which is sometimes referred to as a “ride-sharing company”, is a company that offers prearranged rides or car rentals for a specified fee. A TNC operates by using an online application/App on a mobile device to connect passengers/renters with drivers/car owners.
Rideshare programs have become extremely popular around the world. Commuters who do not have access to mass transit and those who would rather not deal with the hassle of waiting for the bus or getting on a subway can have a private car that will take them to their destination with just a few taps on their mobile device.
There are dozens of other TNCs all over the world. TNCs have many benefits. In many areas, such as metropolitan suburbs, a TNC is far easier and more convenient than trying to find a taxicab, and far less expensive than renting a car or hiring a private driver.
TNCs have created thousands of jobs for eligible drivers. They have also reduced rates of driving under the influence. It is easy and inexpensive to secure a ride, so it’s a viable option for anyone not wanting to risk driving home after having a few drinks.
Despite its benefits, the TNC model also has many drawbacks. This is especially true when it comes to Uber and Lyft accidents and injuries. Even though their purpose is to provide transportation, TNCs do not operate under the same rules as a taxicab operation. According to them, they are not transportation companies. They are technology companies that simply offer a better way to connect passengers to drivers.
In addition, they are not responsible for maintaining vehicles. Their drivers are not their employees, but “independent contractors.” As a result, they do not need to offer them benefits, paid time off, or any of the standard protections an employee would receive.
They can also be less responsible for the actions of an independent contractor than for those of an employee. This is why they have frequently been able to get away with denying liability for their drivers’ actions.
The most common examples of TNC/Rideshare companies are Uber and Lyft.
Uber
Nowadays, Uber has become a multibillion-dollar company with services available all over the world.
Uber, which launched its mobile application in 2011 in San Francisco, operates worldwide in 785 metropolitan areas, with assets around $24 billion, and hundreds of thousands of drivers in dozens of countries.
While Uber has been widely accepted as a new and convenient alternative to taxis, the company has received criticism for a practice known as surge pricing. Since Uber sets their own rates, it has been known to significantly increase prices in situations when the demand for rides is high, such as bad weather, holidays, and events at large arenas and stadiums. Riders can request additional options such as luxury cars, vehicles with accessibility for wheelchairs or car seats, and to be able to share the trip with other passengers to cut down on cost.
Lyft
In the United States, Lyft is probably the second most popular TNC. Lyft has grown to be a major competitor of Uber. The platform offers approximately the same functionality as Uber, in that it offers an app-based alternative to traditional methods of travel, such as taxis, buses, trains, subways, and others.