Driver-owned Ride-hailing Platform Fare Co-op Launches in California Ahead of Robotaxi Era

Empowering drivers to secure their future in the age of automation

SAN FRANCISCO, Oct. 10, 2024 /PRNewswire/ -- Founded in Canada, Fare Co-op, a pioneering multi-stakeholder federated cooperative, is expanding its ride-hailing platform to California. Unlike traditional cooperatives, Fare Co-op's innovative model allows for partial corporate ownership while remaining majority driver-owned. Inspired by VISA's 1967 structure, which led to the largest IPO in U.S. history, Fare Co-op presents a compelling alternative at a critical time for drivers.

California drivers have faced mounting challenges since the repeal of AB5, which offered them employee status and benefits, and its replacement with Proposition 22, a law backed by over $200 million from industry giants. As a result, drivers have been relegated to independent contractors without the rights and protections they need. In the years since Prop 22's passage, driver wages have fallen, while consumer prices have surged. The unveiling of robotaxis, scheduled for October 10th, adds an existential threat: autonomous vehicles could displace millions of drivers entirely, leaving them with no source of income and little recourse.

When ride-hailing first emerged, it disrupted the taxi and livery industries but also created new opportunities for work. Autonomous vehicles, however, could wipe out both sectors, pushing countless drivers and their families into financial uncertainty. Meanwhile, the industry's largest players are partnering with autonomous vehicle manufacturers, cutting drivers out of the future of ride-hailing altogether.

Fare Co-op offers a powerful solution. Through its cooperative structure, drivers retain up to 90% of the revenue from each ride, while consumers save an average of 20%. More importantly, Fare Co-op has a long-term vision: enabling drivers to own the autonomous vehicles that would otherwise replace them, securing their stake in the future of transportation.

Fare Co-op is also calling on autonomous vehicle manufacturers to work together, providing special rates and opportunities that allow drivers to stay involved in the industry. Unlike the incumbents, which seek to replace drivers to increase profits, Fare Co-op envisions a future where drivers are not displaced by AI but empowered by it.

"I am proud to work with a company that truly values its drivers rather than rushing to replace them with autonomous vehicles," said Ivan Olivo, newly appointed CEO of Fare Co-op/Local Driver Co-op Federation. "Drivers are the backbone of rideshare, and without them, the industry as we know it wouldn't exist. Fare Co-op is the only solution that offers drivers a real future in this rapidly changing landscape."

"This model has the potential to save not only the ride-hailing industry but any industry facing disruption from automation, and any autonomous vehicle company that partners with us will not just be doing the right thing but will set itself apart from their competition." added Ahmed Attia, Chairman of the Federation.

Fare Co-op is now operational in Los Angeles, San Francisco, Sacramento, San Diego, Fresno, Palm Springs, and other California cities, offering a driver-owned alternative just as the robotaxi era begins.

Press Contact:

Danny Golnik
(416) 836-4455
http://www.fare.coop

SOURCE Fare Co-op