Call it a sign of the times. As reported by The Denver Post, the Colorado state Senate passed Senate Bill 125 on Monday to authorize and regulate so-called transportation-network companies, including the requirement that they carry adequate insurance. This appears to be sensible legislation, and it passed the Senate easily with little argument.
It is the need for it that is more interesting. Using apps and services with names such as Sidecar, UberX or Lyft, people pay for rides in other people’s cars – instead of taking cabs. Also called ride sharing, this is essentially car pooling with strangers, and the timing, pick-up point and destination is arranged via an app. The apps can even take credit cards, thereby obviating the need for cash.
The Wall Street Journal did comparison shopping among the various services in half-a-dozen major cities. Not surprisingly, the rates were all over the map, with no clear leaders. Traditional taxis did come out a bit better when scored for best times.
And with the apps able to quickly adjust for traffic time and conditions, they warn would-be passengers about to be charged “surge” or “prime-time” pricing. And given the technology, that kind of variable charging can only be expected to continue.
For all that, these are nonetheless private vehicles, which led to a certain concern among lawmakers and liability insurance. SB 125 classifies UberX and the like as transportation-network companies and requires they carry liability insurance, do background checks of drivers and have operating permits from the Colorado Public Utilities Commission.
But in one nod to their private nature, they are allowed to operate under their (presumably cheaper) private insurance until hailed by a fare. At that point, the company’s commercial coverage takes over.
The law seems to be reasonable. And there does seem to be a number of efficiencies involved. So now, everyone with an app and a hybrid can be greening the transportation business.
