Description

THIS MEMBERSHIP IS FOR FLEET OWNERS IN STATES AND PROVINCES WHERE FARE CO-OP IS NOT YET FULLY LICENSED AND OPERATIONAL

As a fleet owner in a market where Fare Co-op is not yet fully licensed and operational, you have 2 options for becoming a member of Fare Co-op:

1. Fractional Membership: FREE, earning 55% of applicable platform profits after hard costs.

2. Preferred Shareholder Membership: Full ownership through the purchase of Preferred Shares, earning 85% of applicable platform profits after hard costs.

The current Preferred Share price for states and provinces where Fare Co-op is not yet fully licensed and operational is:

$200 per Preferred Share

A qualifying fleet owner may purchase and own multiple Preferred Shares.

For fleet use, a Preferred Share must be assigned to each additional driver actively operating on the Fare Co-op platform under that share.

Once a market becomes fully licensed and operational, the Preferred Share price may increase in accordance with Fare Co-op’s Bylaws and applicable Board-approved policies.

A change in the price of newly issued shares does not change the amount originally paid for an existing share.

Monthly Maintenance

The monthly maintenance fee applies once Fare Co-op is fully licensed and operating in the applicable territory.

In a fully licensed and operating territory, a Preferred Shareholder pays the applicable monthly maintenance fee on their first Preferred Share.

The current maintenance charge is $50 plus applicable processing fees, currently totaling $52.50 per month.

Simply owning additional Preferred Shares does not require an additional monthly maintenance fee on every share.

However, each additional Preferred Share assigned to another driver actively operating on Fare Co-op as part of the fleet requires its own $52.50 monthly maintenance payment.

For example:

• If you own 5 Preferred Shares but only operate under 1 share yourself and do not assign the others to drivers, only 1 monthly maintenance fee applies.
• If you own 5 Preferred Shares and assign 2 additional shares to active fleet drivers, 3 monthly maintenance fees apply in total.

Maintenance fees help support insurance, technology, platform operations, regulatory compliance, marketing, driver support and continued regional growth.

* Preferred Shareholder fleet owners are eligible to earn 85% of applicable platform profits after hard costs.

* Fractional fleet members are eligible to earn 55% of applicable platform profits after hard costs.

Fleet Requirements

To qualify as a fleet, the following requirements must be met:

1. The fleet must maintain a valid business license and comply with all applicable state, provincial, municipal and regulatory requirements, including any required commercial fleet insurance, permits and licenses.

2. All participating drivers and vehicles must have the required documentation uploaded to the app, including:

• Valid driver’s license
• Required automobile insurance
• Vehicle registration or license-plate documentation
• Vehicle inspection, where required

3. Fleets must be registered through our Partner Portal – click here to register.

4. Each participating driver must satisfy Fare Co-op’s applicable driver eligibility, background-screening, vehicle and regulatory requirements.

Any local, state, provincial or municipal licensing costs and/or requirements applicable to an individual driver, vehicle or fleet are the responsibility of the applicable driver or fleet operator.

 

How Ride Costs Are Calculated

Each ride consists of applicable hard costs and the platform profits generated from the ride.

Ride Hard Costs

• Insurance, including applicable insurance costs charged based on traveled mileage
• Local and municipal taxes and regulatory charges
• Applicable payment-processing fees
• (Optional) Tolls — where applicable, 100% of which is paid to the driver
• (Optional) Tips — 100% of which is paid to the driver

Applicable Platform Profits

After applicable hard costs, platform profits are shared according to the fleet owner’s membership level:

• Fractional Membership: 55%
• Preferred Shareholder Membership: 85%

Ride pricing may include:

• Distance
• Time, including applicable wait time
• Booking Fee
• Cancellation Fee, where applicable
• Minimum Fare or Minimum Fee, where applicable

Payouts

Eligible fleet operators may receive payouts by ACH where available and subject to applicable processing terms.

Any applicable ACH, instant-payout or other payment-processing fees are separate from the fleet owner’s applicable share of platform profits.

Preferred Share Purchase & Cancellation Terms

A request to cancel a new Preferred Share purchase may be made within the first three days following purchase, subject to the applicable membership or subscription agreement and applicable law.

After the applicable cancellation period, any redemption, reimbursement, transfer, repurchase or other disposition of a Preferred Share is governed by the Fare Co-op Bylaws, applicable agreements, Board approval requirements and applicable law.

Important: Preferred Shares are not publicly traded. Fare Co-op does not guarantee any dividend, financial return, redemption amount or increase in share value.

Preferred Share ownership, compensation, maintenance requirements, voting rights, distributions, transfers and other rights are governed by the Local Driver Federation Cooperative Bylaws, applicable membership or subscription agreements, Board-approved policies and applicable law.