I don't have a problem with the driver not having commercial insurance. However, in that case the company needs to insure the driver when "on duty".
Well, Uber at least already does this.
Actually Uber does not do this. They cover the driver when he has a passenger, but not when he is on call. This is in fact one of the issues that has been raised, and several jurisdictions have been discussing regulations requiring the Uber cover the driver when on call.