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California Declares Carpooling Via Ride-Share Services Illegal

An anonymous reader writes: Ride-share companies like Uber, Lyft, and Sidecar got letters from the California Public Utilities Commission this week telling them that carpool features for their services are illegal. "Basically, the CPUC says that under California law it's illegal for these ride-sharing services to charge passengers an individual fare when carrying multiple people in one vehicle. If the companies would like to add a carpool feature, they first have to request an adjustment to their existing permits with the CPUC or petition the state legislature to modify the law. Uber, Lyft and Sidecar all unveiled carpool features last month. The three companies say the feature lets strangers in multiple locations, but heading the same direction, share rides and split fares — saving passengers up to 50 percent per ride." This news arrives just as Uber gave in to the demands of striking drivers who claim the company is undermining their ability to earn a livable wage.

6 of 288 comments (clear)

  1. Can we please cann these companies what they are.. by thesupraman · · Score: 5, Informative

    Minicab companies.

    They are not 'ride sharing' or 'car pooling' or anything even similar.

    The business model is old and well established,at least in london.
    It means a cab service that does not use fully licensed drivers and vehicles, and cannot be just hailed on the street (must be booked).
    The fact that they take most of their bookings from phone apps/online makes no difference at all.
    It is just a private hire of transport service - they dont use cab ranks, they cannot pick up people who hail them.

    Perhaps if they had admitted this to begin with, they would not have faced the legal hurdles they have.

  2. No by Frosty+Piss · · Score: 5, Interesting

    I know everyone is all over Uber and and the other one because the cars are "nicer" and the service "better" than cabs. But I have a basic problem with Uber and Lift, and that is in the fakery of their liability claims. The facts are ( as presented in MANY news stories) if you get injured in an Uber or Lift car, those CORPORATE entities will deny virtually all liability. So you go after the driver, right? But guess what? He's not insured for paying passengers. SHELL GAME.

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    If you want news from today, you have to come back tomorrow.
    1. Re:No by Dahamma · · Score: 5, Informative

      Except no, that's completely incorrect.

      http://blog.uber.com/uberXride...

  3. not sharing but selling by Mr.+Slippery · · Score: 5, Interesting

    "...it's illegal for these ride-sharing services to charge passengers an individual fare..."

    If you're charging for access to X (for any given X), you're not sharing, you're selling (or leasing). And you don't get to be exempt from consumer protection regulations just because you're doing your selling on the web.

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  4. Re:Can we please cann these companies what they ar by jklovanc · · Score: 5, Insightful

    Why do you need to be "fully licensed" to have someone pay you to drive somewhere

    Why do you need to be fully licensed to cook food for someone?

    don't need anything special to, you know, actually carpool with someone or drive a friend of a friend you don't even know to the airport?

    You also don't need anything special to cook a meal and give some of it to a friend of a friend you don't even know. That would be sharing. When you add the exchange of money in excess of costs and cooking to order it becomes a restaurant and subject to health and safety laws.

    Part of the licensing of cabs is the safety of the cabs. For example drivers are required to inspect their vehicles daily and have them inspected by an independent company every six months. Part of the driver's license is the ability to do the pre-trip inspection. There are also limits on the number of hours a commercial driver can drive. If drivers cet caught too many time their commercial license is pulled. You can do that with a non-commercial license.

  5. Re: Can we please cann these companies what they by jklovanc · · Score: 5, Insightful

    If you use $6 in gas and they pay you $12 then there is $6 profit. What you deliberately miss is that Uber drivers would not be making those trips if not paid for them.

    If you have someone over for dinner and they pay more than their share or the groceries that go into the meal, are you running a restaurant for profit?

    No. But if many different people come over, you cook to order and charge more than the cost of ingredients and energy then you are a restaurant.

    Allowing someone to piggyback on something you are already doing and contributing to the cost is sharing. Doing something specifically at the request of someone else and charging more than the costs is not sharing. That is called running a business.