California Set to Regulate Car Sharing Services

PUC to consider establishing a new category called "Transportation Network Companies"

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    NEWSLETTERS

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    If California regulators approve formal rules for ride or car sharing services Thursday, it would mean changes for businesses like Uber and Lyft in San Diego.

    Members of the state Public Utilities Commission were considering whether to establish a new category of businesses called "Transportation Network Companies."

    If so, online-based companies such as Lyft, Uber and Sidecar would have to meet certain requirements before they can seek a permit to operate.

    The businesses say they want to make it easy for people to share cars.

    However, they face opposition from taxicab and limousine companies who complain they're undercutting their business without being subject to regulations.

    Under the proposed rules, their users would have to undergo driver training and criminal background checks.

    Furthermore, the companies would have to carry insurance that is equal to what is required of cab drivers, and implement a zero-tolerance policy on drugs and alcohol.