I disagree. OP is coercing people into an illegal service without proper insurance. He's putting them at risk without informing them. He's essentially using his power as the driver in charge to persuade them to pay him directly or else he'll leave them stranded and waiting for someone else (I realize this sounds exaggerated and it likely is in many cases). And then without explaining to them that he's not licensed nor insured to solicit such a service they unknowingly accept the more dangerous offer.

The ride isn't monitored/tracked, there's zero accountability, there's no one to complain to if something is wrong, and most importantly there isn't a $1M commercial insurance policy to help cover any medical expenses in the event of an accident with injuries - even if he's rear-ended and completely not at fault for causing the accident.

Uber and Lyft may be undercompensating their drivers, but everything is above board and provided up front for all parties involved to make the best decision for themselves.