Calif. DMV Back-Pedals On Commercial-Plate Mandate For Ride-Share Drivers

The San Francisco Chronicle reports that In an abrupt U-turn, the California Department of Motor Vehicles late Friday retracted its finding that drivers for ride-hailing services like Uber, Lyft and Sidecar must obtain commercial license plates. That determination — based on a 1935 state law — ignited a firestorm of criticism from the San Francisco startups and their supporters as stifling innovation. Commercial licenses are cumbersome to obtain, meaning they could impede the companies’ growth, which relies on getting new drivers, many of whom work just part time, into service quickly. And commercial registration probably would have necessitated that drivers get commercial insurance, which is significantly more expensive than personal auto insurance. Republican Assembly members threatened legislation over the “nonsensical” interpretation if the DMV didn’t reconsider its stance before Feb. 17. Now the department says it will do just that. That doesn't mean drivers for companies like Uber and Lyft can expect to be left alone by the DMV, though, which according to the article "will meet with regulators and the industry to work through the issue."

Comments

Re:Insurance

[drinkypoo]

Why, exactly, should Uber drivers get to drive passengers using regular non-commercial drivers' insurance?

Because commercial licenses are handled unfairly.

If you're letting them drive on non-commercial licenses than that means that regular drivers are subsidizing Uber-drivers.

You've got these things completely backwards. It's why should Uber drivers get to drive using non-commercial licenses, and if you're letting them drive on non-commercial insurance.

The big problem with commercial licenses is that we hold commercial drivers to a higher standard even when they're not driving on a commercial basis. It's abusive when considered in combination with ride-sharing.

Ride-sharing cars can't use taxi stops or taxi lanes, so they're not really using more road resources than would the person they're hauling around if they could afford a car, if it made sense for them to drive their own car, whatever. But they help relieve parking pressure, so they're still a positive force. You shouldn't try to prevent them. Taxi companies aren't serving the needs of the public, which is why these services even exist.