What Happened?
The California Public Utilities Commission has decided to enable ridesharing companies that operate online to legally conduct business with the appropriate permits. The CPUC’s decision makes California the first state to legalize ride-sharing programs conducted online, as many other major cities across the country continue to battle the businesses that are taking paying passengers away from taxi services.
The Goal
California has passed regulations allowing ride-sharing companies to conduct business with a permit that specifies them as a Transportation Network Company. When a driver becomes licensed through the state, they can then start receiving requests from passengers via smartphone applications and pick them up in their own personal vehicles. At the completion of each ride, the driver and rider rate each other to build up profiles for other users in the system to access.
The CPUC, and many other local government agencies, were originally unhappy with the intrusion of ride-sharing programs in the local economies. But more governments are coming around to the sharing economy mentality that leverages information technology to make the access and dissemination of goods and services to residents easier and more efficient.
Rather than wasting one taxi-esque driver on a single passenger, the ride-sharing programs allow multiple passengers to be moved around in a single vehicle for reduced rates and increased convenience. Organizations such as Uber, Lyft and Sidecar consider their business models innovative as they hope to make transportation options smarter and cleaner through connective technology and social media.
Nationwide Sharing
In Chicago, many ride-sharing companies have come onto the scene to take advantage of a booming population not interested in driving through traffic congestion. After the success of Uber throughout the city, Lyft has also laid a foundation in Chicago to provide on-demand black car services in competition with Uber. Lyft vehicles can be distinguished on the streets by a bright, pink moustache placed on the front plate of the car.
Lyft has also spread its wings into Los Angeles and Seattle, after a rocky reception in San Francisco. Once Organizations such as Lyft, Uber and Sidecar make their presence known to the local community, smartphone users of all genders and ages access the services quickly and efficiently on the go, for a more convenient transit option throughout major, busy cities.
While many cities are first hesitant to accept the business model into the local economy, many municipalities have learned to embrace the sharing economy mentality. In Seattle, the City Council Committee on Taxi, For-hire and Limousine Regulations approved ride-sharing services to operate under certain conditions. Seattle officials decided to place regulations on Uberx, Lyft, Sidecar and other similar organizations so ensure they do not have a competitive disadvantage over existing taxi services. The potential regulations include:
- Drivers of ride-share business must acquire a for-hire driver’s license
- For-hire drivers can convert their licenses to taxicab licenses after certain standards are met
- All cars being used must be insured , as well as the drivers and passengers
- Fare determination must be set prior to passengers starting their trip
- Requests via mobile applications are deemed pre-arranged
- Illegal cab hailing regulations will remain applicable
Smooth Rides
Gov1 has reported on other transportation trends including the use of federal funds for small projects and optimizing data platforms for increased efficiency.