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4 October 2018Analysis

HyreCar to form captive for on-demand Uber and Lyft drivers

HyreCar, a carsharing marketplace for ridesharing, has established a joint venture that will focus on creating a captive insurance company designed specifically for carsharing in the ridesharing space.

The joint venture is aimed at providing the company  flexibility to reduce insurance risk, increase profit margins and provide tailored insurance solutions to the on-demand economy.

HyreCar connects on-demand drivers with the ability to rent a car for Uber and Lyft. Users can list their cars on HyreCar's website and respond to driver requests from other users who wish to rent their car to offer ridesharing and taxi cab services such as Uber and Lyft.

The strategic partnership is between HyreCar, Dave Haley, CEO of American Business Insurance Services (ABI), and Peter Foley, CEO of LILCHA Holdings.

“Peter and Dave have been with HyreCar from the beginning, and this announcement cements our relationship with two of the most well-respected industry veterans in the commercial auto insurance business,” says Joe Furnari, CEO of HyreCar. “This collaboration confirms HyreCar’s continued commitment to the ridesharing industry and providing scalable insurtech solutions for users on the platform.”

Foley added: “I am thrilled to be working with Joe and Dave in this new and exciting sector. After more than 35 years in the insurance industry, I am excited to be a part of some new and exciting opportunities that will drive innovation for HyreCar and ridesharing.”

Haley commented: "We've seen a lot of changes in the livery (for-hire) services over the last few years. HyreCar seems well positioned to take advantage of the trends we see emerging in the industry."

Captive International previously  covered a panel at VCIA 2018 conference that suggested insurance products will transform as subscription and usage-based models become more prevalent - and that captives in particular have more flexibility to tailor policies and ability to bundle products.