Uber Launches Insurance Program for U.S. Drivers

Uber

Uber, a ride-hailing service headquartered in San Francisco, California, is offering an insurance program for drivers in the United States.

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As part of a pilot program, drivers in Arizona, Delaware, Illinois, Oklahoma, Pennsylvania, South Carolina and West Virginia are able to apply for the injury protection insurance, according to a report from PennLive via Engadget.

Uber said the insurance will become active for a driver who is logged into the app at the cost of $0.0375 per mile. That will raise the per-mile price for passengers by $0.05 in a few of those markets.

“Uber is not making any money off of this,” Uber’s Head of Safety and Insurance Gus Fuldner was quoted as saying by PennLive. “We believe drivers should have a low-cost option for protecting themselves and their families from rare and unpredictable accidents that prevent them from working.”

According to the report, the insurance program offers a maximum payout of $1 million. It will cover medical expenses and lost income for drivers.

Uber told Engadget that this insurance program is opt-in and the new rates will apply to all drivers in all states where the program is being offered.

Uber Financials

Uber isn’t a public company and it does not require to report its financial results. But, last month, the ride-hailing giant decided to share its financials with Bloomberg for the first time.

The company said it more than doubled gross bookings in 2016 to $20 billion. Its net revenue was $6.5 billion, while adjusted net losses were $2.8 billion, excluding the China business, according to Bloomberg.

During the fourth quarter of 2016, gross bookings rose 28% from the third quarter to $6.9 billion. The firm generated $2.9 billion in revenue, a 74% increase from the third quarter. Losses increased by 6.1% over the same period to $991 million.

“We’re fortunate to have a healthy and growing business, giving us the room to make the changes we know are needed on management and accountability, our culture and organization, and our relationship with drivers,” Rachel Holt, the head of Uber’s US and Canada operations, said.

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