The Cracks in the Foundation: What ICE Raids Reveal About Background Checks in the Sharing Economy

Since the early days of the peer-to-peer and sharing economy boom, platforms like Uber, Lyft, Turo, and Airbnb have promoted one key selling point: trust. I know this firsthand—I worked at Digisure, a company built around enabling that very trust. We provided identity verification, fraud detection, and insurance services for platforms that promised safety without owning assets.

The premise was simple: by offering robust background checks, user verification, and community reviews, platforms could create a safe, decentralized ecosystem where strangers could share cars, homes, and even pets. But the recent ICE raids targeting rideshare lots—many focused on Uber and Lyft drivers—have revealed a troubling truth: the trust infrastructure we assumed was secure may have been paper-thin all along.

Background Checks in Name Only?

While Uber and Lyft claim to perform background checks on all drivers, what's becoming clear is that these checks did not always include verification of legal work status. In fact, Social Security Numbers were not required in many onboarding processes, and in several cities, undocumented individuals were reportedly allowed to drive under someone else’s account—a practice known as "account sharing" or "renting profiles."

This issue isn’t limited to one driver or one city—it’s increasingly evident that it may be industry-wide. That should raise serious concerns, especially as Uber expands sensitive offerings like:

• Uber Teen (rides for minors),

• Uber Pet (rides with animals),

• and Uber Health / NEMT (non-emergency medical transport).

If drivers for these services are not being properly vetted—or worse, if the person behind the wheel isn’t the person approved by the platform—what does that mean for public safety?

Elon Musk’s Involvement: Privacy or Power Play?

Adding another layer of complexity is Elon Musk’s recent campaign for broader access to Americans' PII (personally identifiable information), including Social Security data. Musk has claimed that a significant portion of Uber and Lyft drivers may be undocumented or using fraudulent credentials. His proposed solution? Give private companies like X (formerly Twitter) or Tesla access to federal identity databases to perform their own checks.

This raises critical questions:

• Is this about national security, or is it a business opportunity disguised as a public safety concern?

• Will Elon’s proposed access pave the way for automated, AI-driven background checks for his own platforms or vehicles?

• Or could this create a two-tier system where only the platforms with federal access are "trusted," effectively dismantling smaller players in the gig economy?

What's at Stake for Drivers and the Industry?

If Uber and Lyft are pressured into implementing more stringent background checks—especially those requiring government-issued SSNs or work authorization—it could:

• Force tens of thousands of undocumented or unverified drivers off the platforms overnight.

• Trigger labor shortages, longer wait times, and higher costs for rides.

• Accelerate the push toward autonomous vehicles and AI-managed fleets, aligning with Elon Musk's long-term ambitions.

But it could also restore public trust, especially for vulnerable populations using Teen, Pet, or NEMT services. This might finally create a shared economy that delivers on its original promise: accessibility and safety.

A Reckoning for the Sharing Economy?

The peer-to-peer model has always been a balancing act between trust and scale. But if the systems that verify identities are broken—or worse, intentionally circumvented—then trust isn’t just eroded; it’s counterfeit.

The industry now faces a pivotal question: Can platforms still scale responsibly, or has the pursuit of growth outpaced their ability to ensure safety?

As we navigate the evolving landscape of the sharing economy, it's imperative for stakeholders—platforms, regulators, insurers, and users—to prioritize transparency and safety.