PUC Proposes Ride-Share Services Regulation

Mayor Eric Garcetti, who has been quick to embrace phone app-enabled ride-share services, today applauded a state plan that would allow these services to continue operating.

The California Public Utilities Commission released a proposed decision
Monday to regulate services such as SideCar, Uber and Lyft that allow customers to use phone apps to schedule rides with other app users.   
Garcetti called the plan's release "an exciting moment for Los Angeles
as we work to embrace technology to improve our transportation options and save people money.''
   
The services have grown in popularity in major cities across the country in recent years, including in Los Angeles, New York and San Francisco.
   
The proposed decision is headed to vote by the commission in September, but yesterday's announcement lays out requirements that would regulate these
new generation, private transport services.
   
Garcetti's support of the services puts him at odds with the city's Transportation Department, which issued cease and desist letters to Lyft, SideCar and Uber in June, accusing the businesses of flouting city laws that apply to taxis.
   
The companies have so far ignored the letters, saying they have interim
agreements with the CPUC that allow them to operate throughout the state. The
companies say they are not taxis, so do not have to follow city laws.
   
Meanwhile, traditional taxi companies have balked at the services, saying the companies are no more than "rogue taxis'' operating in a way that endangers public safety.
   
Under the state public utility commission's proposed decision, the ride-share services would need to apply for a license with the state, require drivers to submit to criminal background checks, create a driver training program and carry out a "zero-tolerance'' drugs and alcohol policy.
   
The companies would also need to buy insurance policies that require at least $1 million per-incident coverage, which is more than the $75,000 required for limousines.
   
"This decision allows new, cost-effective solutions while protecting public safety through common-sense regulations,'' Garcetti said.
    
With the City Council also creating city regulation for these services, Garcetti said he is "looking forward to working closely with L.A.'s taxi companies to revisit our existing franchise agreements to adopt similar innovations.''