Fare Co-op, a groundbreaking multi-stakeholder federated cooperative founded in Canada, is set to launch its innovative ride-hailing platform in California, offering a driver-owned alternative to traditional services.
This model allows for partial corporate ownership while ensuring that drivers maintain majority control, drawing inspiration from VISA’s successful structure that contributed to one of the largest IPOs in U.S. history.
The timing of this expansion is particularly significant for California drivers, who have faced considerable challenges following the repeal of AB5.
This legislation had previously provided employee status and benefits, and its replacement with Proposition 22—backed by over $200 million from major industry players—has relegated many drivers to independent contractor status, stripping them of vital rights and protections.
The upcoming introduction of robotaxis on October 10 has further heightened concerns, as drivers fear that autonomous vehicles may threaten their livelihoods.
“Drivers are the backbone of rideshare, and without them, the industry as we know it wouldn’t exist,” stated Ivan Olivo, CEO of Fare Co-op. The cooperative model allows drivers to retain up to 90% of the revenue from each ride, while consumers can expect to save an average of 20%. Moreover, Fare Co-op envisions a future where drivers can own the autonomous vehicles that may replace them, ensuring their stake in the transportation industry.
Fare Co-op is also calling on autonomous vehicle manufacturers to collaborate and offer special rates that enable drivers to remain integral to the industry. In contrast to traditional companies that often seek to replace drivers for profit, Fare Co-op is committed to empowering them through innovative solutions.
Currently operational in key California cities including Los Angeles, San Francisco, and San Diego, Fare Co-op presents a promising alternative for drivers during a time of uncertainty, advocating for their rights and sustainability in the evolving transportation landscape.