California regulation starts

19 Sep, 2013

After legal battles with the company and other ride-sharing services, the California Public Utilities Commission decides to create a new service category of transportation network company and to regulate such services.  Drivers will need CPUC permits.  They must also undergo criminal background checks and pass a company driver training program.  Companies must pay the CPUC one-third of one percent of total revenues, as well as implement a zero-tolerance drug and alcohol policy and maintain commercial liability insurance policies that cover not less than $1 million per incident.   The CPUC will revisit the ruling in a year to see what its impact has been on business and society.

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