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Ridematching programs began migrating to the Internet in the late 1990s. Their work is considered by many to be a forerunner of carpooling & ridesharing systems technology used by Garrett Camp, Travis Kalanick, Oscar Salazar and Conrad Whelan at Uber. James Davidson from Harvard, Dace Campbell, Ivan Lin and Habib Rached from University of Washington, and others, began to investigate the feasibility of further development although the comprehensive technologies were not commercially available yet at the time. In the 1990s it was popular among college students, where campuses have limited parking space. In large part this has been attributed to the dramatic fall in gas prices (45%) during the 1980s. Ridesharing declined precipitously between the 1970s and the 2000s, peaking in the US in 1970 with a commute mode share of 20.4%. At that time the first employee carpools/vanpools were organized at Chrysler and 3M. Ridesharing was popular in the mid-1970s due to the 1973 oil crisis and the 1979 energy crisis.

While the Associated Press recommended the use of 'ride-hailing' as a term, it noted that, unlike taxicabs, ridesharing companies cannot pick up street hails.

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In January 2015, the Associated Press Stylebook, the collective that sets many of the news industry's grammar and word use standards, officially adopted the term 'ride-hailing' to describe the services offered by these companies, claiming that 'ridesharing' doesn't accurately describe the services since not all rides are shared, and 'ride-sourcing' only is accurate when drivers provide rides for income. Usage is inconsistent, with the same publication or the same article sometimes using both 'ridesharing' and 'ridehailing'. Groups representing drivers, including Rideshare Drivers United and The Rideshare Guy (Harry Campbell), also use the term 'rideshare', since 'hailing' rideshare cars from the street is illegal. The term 'ridesharing' has been used by many international news sources, including The Washington Post, CNN, BBC News, The New York Times, the Associated Press, and the Los Angeles Times. 3.7 Decline in value of taxi medallions.3.6 Increased traffic congestion, carbon emissions, and reduced usage of public transport.3.3 Dynamic pricing and price fixing allegations.3.1.2 Compliance with minimum wage laws.

3.1.1 Classification as independent contractors.

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