The Drivers Cooperative (TDC) is set to disrupt the ridesharing industry with its innovative worker-owned platform. This cooperative model allows drivers to have a greater stake in the company and enjoy higher earnings, making it an attractive alternative to dominant players like Uber.
Ken Lewis, one of TDC's three founders, has personal experience driving for a living. Growing up on the island of Grenada, he witnessed the power of cooperatives firsthand. Now, as a graduate school student, Lewis is putting that knowledge into practice by helping create a ridesharing app that benefits drivers, not just investors.
Lewis and his co-founders, Erik Forman and Alissa Orlando, are determined to challenge the exploitative practices of Uber and Lyft. They believe that TDC's cooperative model can gain a competitive advantage by eliminating excessive fees and giving more power to drivers. "The way the [Uber] model is organized is extractive," Lewis says. "Imagine a company that doesn't have any profits, but has created billionaires." By doing away with these exploitative practices, TDC aims to create a fairer system for drivers.
Forman, a veteran labor activist and organizer, has worked closely with rideshare drivers in New York City. He's witnessed the struggles drivers face when classified as independent contractors, forcing them to pay for their own car maintenance and healthcare benefits while dealing with low earnings. "The industry seems uniquely in need of a system change based on worker ownership," Forman says.
Orlando, who used to work for Uber, has a unique perspective on the company's practices. She's seen firsthand how Uber prioritizes profits over driver well-being, cutting pay rates and saddling drivers with unsustainable car loans. "We called drivers partners to the extent that it helped us" maintain favorable regulatory status, Orlando says, "but they were never partners."
Mohammad Hossen, a rideshare driver on TDC's advisory board, has experienced firsthand the struggles of driving during the pandemic. His income has fallen by two-thirds, and he's had to pay out-of-pocket for safety measures like disinfectant. The shared predicament has allowed him to successfully recruit other drivers.
TDC plans to grow its network of drivers through word-of-mouth and press coverage, rather than relying on big ad budgets. By combining the purchasing power of all members, they hope to lower expenses on costs like gas and insurance, increasing earnings for drivers by 8-10%. Any profits left at the end of the year will be paid out to drivers as dividends.
The Drivers Cooperative is starting a pilot project this month, giving rides to workers for the Bronx-based Cooperative Home Care Associates. This cross-coop cooperation demonstrates TDC's commitment to building a network of driver-owned cooperatives. As TDC continues to grow and expand, it has the potential to revolutionize the app startup ideas industry and create a more equitable landscape for drivers.
In this new era of cooperative ridesharing, one thing is clear: The Drivers Cooperative is poised to shake up the status quo and give power back to those who deserve it – the drivers themselves.