If you operate a ridesharing firm in the shared economy, your risk management needs are unique. Ridesharing firms have a different way of interacting, transacting and consuming products and services as compared to conventional transportation companies. A business venture of this type requires new approaches in managing risks and liabilities.
While the concept of ridesharing may seem fairly straightforward and trouble-free, however, ridesharing has implications that insurers and policyholders have not always anticipated.
Our culture has a strong history of ridesharing. Historically, we have always been happy to share rides with friends, fellow college students, colleagues and neighbors. However, the ubiquitous use of smartphone technology and the ability to stay connected while on the go has begun to alter the way people share rides with one another.
Through the use of technology and mobile applications, we can now use social media to locate suitable ride partners. Trust and safety become critical points to build a strong ridesharing community.
Building Trust and Safety in the Ridesharing Industry
Here are the basic steps that a ridesharing firm can take in building its community and membership:
1. Identity verification plays a central role in building a ridesharing community. A ridesharing firm must verify user identities by cross checking their information through social media, credit bureaus and other points of reference.
2. Ridesharing firms must also make sure that they safeguard the data privacy of each of their users.
3. Promoting active communication between the ridesharing firm and each of its registered members is important in building trust and safety.
4. Verification of trusted drivers is an essential building block to trust and safety. A responsible ridesharing firm will need to frequently check the driving records of each member, and the information should always be available in real time, on demand.
5. The members of a ridesharing firm must review the terms of the contract and verify that they completely understand the nature of their responsibilities and obligations.
It is equally important to address the unique insurance issues that will surface for ridesharing firms and their passengers.
Whether you are a driver or a passenger, you should inquire about the insurance programs available and any limitations or imposed restrictions that can result from participating in ridesharing. If you encounter any issues during the ride, is special assistance available? And to enhance the user experience, what other membership services are available?
It is important for ridesharing firms to take these basic steps to build trust and safety with their members. Reviewing all of the organizational risks can help you implement practices that build trust and safety with your members.
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Please note that this article expresses the opinions of the author and does not reflect the views of Move Forward.