Debate over the proper amount of insurance coverage for drivers with ridesharing companies has been a sizeable speed bump in the growth of firms like Uber and Lyft. This week, however, several carriers have made moves to support the success of an already booming business.
Two Chinese firms – China Life Insurance Co. and China Taiping Insurance – made headlines this week after being named as some of Uber’s newest investors. A leaked presentation given to prospective investors revealed the two companies have helped contribute to Uber’s access to nearly $50 billion in venture capital.
Uber expects to grow that already sizable amount with an initial public offering in the next two years, Reuters reported. Meanwhile, private investors like the two insurers are a safe bet for the ridesharing company as it continues to resolve regulatory and legal issues analysts say could scare off the public market.
Lyft also scored a victory from the insurance sector Monday with the announcement of a partnership with
Allstate Insurance.
Lyft announced that it has selected Allstate’s roadside assistance program for help in providing drivers with protection as they transport customers. All drivers will now receive Allstate services, including fuel delivery, a battery jump, a tire change, or a tow if a driver’s vehicle should break down on the road.
The vehicles are required to be well maintained in order to benefit from Allstate protection.
Allstate has been involved with the ridesharing industry since June, when it introduced a new product for drivers with Uber, Lyft and other similar companies. The policy extends added auto coverage to drivers while they’re between passengers for an additional $15 to $20 a year – closing the critical “coverage gap” that has concerned regulators and lawmakers.
Oliver Hsiang, vice president of partnerships at Lyft, praised Allstate for its progressive approach to the sharing economy.
“[Lyft is] an integral part of Americans’ everyday transportation needs,” Hsiang said. “We are thrilled to see industry leaders like Allstate at the forefront of creating innovative solutions to protect drivers and passengers.”
Ridesharing companies have traditionally been a puzzle for insurance regulators, who are concerned over company policies that do not provide protection when a driver has his or her ridesharing app turned on, but has not yet picked up a passenger.
