Fare Co-op, a driver-owned rideshare service, has launched in Los Angeles with a model that aims to empower drivers in an industry increasingly dominated by automation. Unlike major competitors such as Uber and Lyft, Fare Co-op has pledged to maintain drivers’ roles, giving them the opportunity to invest in future driverless vehicles and retain a significant share of fare revenue. The service provides riders with fares up to 20% lower than average and a commitment to no surge pricing, ensuring fair pricing regardless of demand.
Fare Co-op’s structure prioritises its drivers by directing 85% of each fare to member-owners, while non-member drivers still earn 55%—well above industry standards. Ivan Olivo, newly appointed CEO of Fare Co-op and the Local Driver Co-op Federation, described the initiative as “the only solution that offers drivers a real future in this rapidly changing landscape.” He added that Fare Co-op’s model recognises drivers as the backbone of the rideshare industry and champions a fairer economic system.
For passengers, Fare Co-op promises consistent savings, with no surge pricing even during peak hours. This, combined with the commitment of member drivers invested in the platform’s success, aims to offer customers a reliable and high-quality rideshare experience. The company’s approach not only keeps prices down for riders but also ensures drivers remain central to the industry amid potential automation shifts.
The long-term strategy of Fare Co-op includes allowing drivers to become owners of autonomous vehicles when the technology becomes more widely available. Fare Co-op believes this will not only ensure drivers’ financial security but will also differentiate them from other platforms by building a future where drivers retain control over their careers. Ahmed Attia, Chairman of the Federation, highlighted that the co-op model could offer a pathway for any industry facing disruption from automation. “Any autonomous vehicle company that partners with us will not just be doing the right thing but will set itself apart from their competition,” he said.
Alongside its core services, Fare Co-op operates a two-tier referral programme, which enables participants to earn income by referring new drivers and riders. By referring over 100 people, individuals can earn either cash or free rides, with a portion of the federation’s net profits allocated to these referrals. Up to 80% of each referral’s net profit returns to participants with each completed ride, offering substantial earning potential for those who grow the network.
Fare Co-op’s entry into the rideshare market represents a sharp contrast to traditional rideshare giants, who have recently voiced ambitions to phase out human drivers in favour of autonomous technology. Fare Co-op, however, views its drivers as valuable stakeholders, providing them with a structure to both earn a living and invest in future technologies.
By promoting driver ownership and re-investing fare income back into its network of member-owners, Fare Co-op seeks to provide a reliable service to riders while paving the way for a new, more inclusive economic model in the rideshare industry. Learn how you can save, earn, and ride the next era of ridesharing at www.fare.coop
