Politics & Government

State to Allow, Regulate Ridesharing Services

The companies will be allowed to operate under a new set of regulations.

By Rebecca Whitnall and City News Service

Much to the dismay of many in the taxi industry, the California Public Utilities Commission on Thursday ruled companies operating rideshare services will be allowed to operate throughout the state.

Such services—like Lyft, UberX and Sidecar—allow people in need of rides to use downloadable smartphone applications to make arrangements with those willing to drive them to their destinations, often for a fee.

The spread of rideshare companies to several major cities around the country have been welcomed by tech-savvy ride-sharers, but also have drawn the ire of the taxi industry and some city officials, including in Los Angeles.

Taxi drivers in the city so opposed the services about 200 of them staged a June 25 protest, honking their horns and circling City Hall. The protest came a day after the Los Angeles Department of Transportation issued cease-and-desist letters to Uber Technologies Inc., Lyft and Sidecar. 

The taxi industry must follow strict city laws, many aimed at protecting the public's safety, that many of rideshare services are flouting, taxi company representatives said.

At the June protest, cab driver Aydin Kavak told KABC a main reason he opposes the rideshare services.

"It's making us nervous because we feel like they come and steal our fares through these apps," he told KABC.

Rick Taylor, a spokesman for taxi firm Los Angeles Yellow Cab, called Tuesday a "sad day'' and contended the new regulations are not as strict as those followed by taxi companies.

The state commission "decided to turn their backs on safe legal drivers,'' he said.
   
The PUC did put new rules in place with Tuesday's decision, however. Rideshare companies, which will be considered "charter party passenger carrier" under a new "Transportation Network Company" category, must get a license from the PUC, require criminal background checks of drivers, create a driver training program, take up a "zero-tolerance'' policy on drug and alcohol use, buy commercial liability insurance policy with a minimum $1 million coverage and do a 19-point car inspection.

The rideshare companies appear to have a friend in Mayor Eric Garcetti, whose spokeswoman hailed the PUC's decision today as "good news.''

"Mayor Garcetti wants to see ridesharing become a fully-integrated part of L.A.'s transportation system,'' said mayoral spokeswoman Vicki Curry.

She addressed concerns raised by the taxi industry that such services may endanger public safety, saying they are `"assessing next steps'' and "will continue working with our taxi companies to improve their competitiveness and service moving forward.''

Do you support the rideshare companies? What about the taxi drivers? Also, if you've used a rideshare service, tell us about your experience.


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