Transportation apps, start your engines: The California Public Utilities Commission on Thursday approved regulations on so-called "transportation network companies." Now companies like Uber, Lyft, and SideCar don't have to fear the long and fickle arm of the law cracking down on them for connecting drivers and riders.
California's regulations require transportation apps to apply for permits from the Public Utilities Commission, mandate criminal background checks for every driver, train drivers, and establish zero-tolerance policies on substance abuse. Then there's the whole matter of insurance: minimum coverage of $1 million is required.
In the unanimous approval, the commission wrote that it "is aware that [transportation network companies] are a nascent industry. Innovation does not, however, alter the commission's obligation to protect public safety, especially where, as here, the core service being provided—passenger transportation on public roadways—has safety impacts for third parties and property."
The affected companies were, of course, ecstatic.
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