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Calif. figures out regulation for ride-sharing apps

Updated: Oct 1, 2013 09:26 AM
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By Stephen Edelstein

If you really want to go green, why not get rid of your car?

That's the logic behind ride-sharing and car-sharing services.

In theory, they provide all of the convenience of a car, without the need to own one. These services are pitched as an alternative form of transportation for urban areas.

But while car-sharing services like Zipcar have been accepted and often welcomed by most municipal governments, newer ride-sharing services have presented a few legal hurdles.

California now thinks it's figured out how to regulate ride-sharing apps, Mashable reports.

Ride-sharing and car-sharing are both part of the same trend, but they don't work the same way.

Car-sharing is essentially a more flexible form of car rental: Outfits like Zipcar allow members to rent cars for short periods of time, and without much advance notice. Unlike Hertz or Enterprise, drivers also don't have to go to a rental office to pick up their cars.

Ride-sharing, on the other hand, doesn't involve driving at all.

Zimride allows groups of people to set up carpools, while Lyft connects individual people needing rides with individual drivers (think of it as a gypsy cab for the digital age).

Another service, Uber, connects riders with taxis and car services.

Consequently, while regulators have been able to treat car-sharing services like scaled-down car rental companies, ride-sharing has been more challenging.

Insurance and safety have been two major issues. After all, most kids are told not to accept rides from strangers--so can adults make it safe?

The California Public Utilities Commission thinks it has found a way.

The Commission voted unanimously to allow ride-sharing services to operate in the Golden State as "Transportation Network Companies."

Drivers will now have to pass a criminal background check and take safety classes, among other requirements, while their cars will have to pass 19-point inspections.

How practical this turns out to be--whether all drivers will comply--remains to be tested as the new rules roll out.

Three ride-sharing companies (Lyft, Sidecar, and Uber) had previously been allowed to operate in Los Angeles.

Long-term, the proliferation of vehicle sharing could lessen urban residents' need to rely on their own cars.

It might be easier, for example, for driver to keep limited-range electric cars like the Fiat 500e as their only vehicles if they have a ride-sharing service as a backup.

Car-sharing services could also allow people to use public transit exclusively, and rent a car for longer trips.


This story originally appeared at Green Car Reports


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