system
A chat on subreddit /r/wallstreetbets
human
Actually, honest question: What's stopping Lyft/Uber from creating their own insurance division? Or buying a smaller insurance company or something like that? They each have a large pool of drivers so the risk is spread out, and they wouldn't have to pay for another company's overhead.

gpt
My fear about doing this is that it wouldn't be that much of a benefit (and would come with set-up costs).   
  
 Insurance profit margins are thin at 5%.  Even if Lyft could pocket this 5%, this is 5% of 8% of bookings, for about .4%.  Meaning they'd be paying 7.6% in insurance, not 8%.  Maybe with taxes, etc., this actually goes down to 7%.  Is all this effort worth it to save 1% of bookings?  It could be, but it seems overly complicated given the rest of Lyft's challenges.