Companies that use smartphone apps to connect people...
Companies that use smartphone apps to connect people with rides, such as Uber, Sidecar and Lyft, should be subject to regulation, said a “proposed decision” the California Public Utilities Commission will consider this fall. But the CPUC proposal “is not…
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attempting to enact communications rules that will regulate the smartphone application used to connect passengers with drivers,” said the document, introduced by CPUC President Michael Peevey Tuesday (http://bit.ly/19xioqw). “Instead, the Commission is attempting to promulgate rules that will govern the transportation service itself.” The CPUC proposal said it applauds the technology and innovation of these companies, but it’s not persuaded to believe in a “regulatory gap because they are using a smartphone to facilitate transportation for-hire.” Innovation doesn’t remove the regulators’ need to protect consumer safety, it said. Such companies, under the proposal, would need licenses through the CPUC and be compelled to perform criminal background checks on drivers, have a zero-tolerance policy on drugs and alcohol, set up a driver training program and other requirements. The item is set for discussion at the CPUC’s Sept. 5 meeting.