The world is almost at the end of the work week, moving towards the weekend, but apparently, things are not going smoothly and well with Lyft. First, Lyft drivers who are college students are facing a huge insurance coverage gap, then Lyft’s stocks have recently gone undervalued. Read on for the scoop.
Insurance coverage gap
Whether they financed their cars and licenses themselves or had their parents do it, some college students are finding the good in driving their own vehicles – not just using them for pleasure and fun, such as irresponsibly driving somewhere.
Interestingly enough, some college students are Lyft drivers, so they have the opportunity to earn on their own, probably de-burdening their parents with the hefty tuition fees. Forty percent of full-time college students work while studying, taking advantage of platforms like Lyft, Uber, and delivery services to earn extra.
However, an evaluation done by insurance experts is saying that a portion of those students is “unknowingly” facing insurance coverage gaps. So, instead of de-burdening parents with the costs, this problem is taking the opposite route, bankrupting families.
The evaluation from CheapInsurance.com stated that millions of students driving for Lyft and Uber are unknowingly operating in dangerous and deadly “coverage gaps” that neither their parents’ car insurance nor company-provided policies can resolve, leaving families in deep, deep financial trouble, instead of seeing the Lyft driving opportunity working on their advantage.
High stakes, resolutions
So what happens if this trend continues? The financial stakes are high. When insurance claims are disapproved because of rideshare activity gaps, property damage from accidents involving other vehicles can reach up to $100,000.
There are also instances when medical bills from injuries – knock on wood – may exceed $500,000. Plus, legal liabilities for passenger injuries may result in million-dollar ordeals, and parents’ assets become targeted when students are still under their wing and responsibility.
Thus, ridesharing media are offering solutions. For students and families, they might work toward immediate disclosure, rideshare insurance add-ons, and family policy reviews. For ridesharing companies, they could work towards enhancing driver education, and utilizing partnership programs and campus outreach to their best advantage.
Will these solutions be effective? Sign up for your account on this Ridesharing Forum site today to share your thoughts!
Stocks go undervalued
Meanwhile, in other Lyft news, the platform, which is the second-biggest ride-hailing company in the United States with a market capitalization of $5.9 billion, is situating itself now at a “critical juncture,” as ridesharing media is pointing out.
It is navigating a swiftly evolving transportation landscape, specifically that its recent stocks are appearing undervalued based on estimates, though this suggests a potential upside for investors, nonetheless. For the actual figures, you may refer to this article.
This recent stock performance, thus, has drawn mixed reactions from financial experts who are closely monitoring Lyft’s capacity to stay ahead in the competition in an increasingly crowded market, without forgetting its global footprint.