A Fare Deal: The Reasonable Regulation of Ridesharing

Note | 104 KY. L. J. ONLINE 17 | Sept. 28, 2015

Dylan Merrill[1]

Introduction

On New Year’s Eve 2013, Sayad Muzzafar was driving for the ridesharing company Uber when he struck a mother and her two children while they were crossing the street. That night, one of the children, a six year-old girl, died from her injuries.[2] The Liu family later sued the company, but Uber distanced itself from the accident, arguing it was not liable because Mr. Muzzafar did not have an Uber passenger in his vehicle when he struck the pedestrians.[3] At the time of the accident, policymakers had not implemented regulations for the new rideshare industry, further frustrating the goal of determining who in fact is liable in these circumstances.[4]

This sad situation is only one example of how legal grey areas are cloaking ridesharing in uncertainty, creating a dire need for legal and regulatory certainty. However, since the law has historically struggled to keep pace with technological advances, these kinds of legal grey areas and the problems they pose are not anything new. For example, in 1863, the Supreme Court of the United States was faced with the issue of how to regulate steam engines and railroads according to laws that were passed long before the inventions became ubiquitous.[5] Justice Samuel Freeman Miller, writing for the majority, marveled at the complexity of bringing new technologies into the fold:

Perhaps the most remarkable invention of modern times, in the influence which it has had, and is yet to have, on the affairs of the world . . . is the railroad system. It is not strange, then, that when we are called to construe a statute relating to this class of subjects, passed before a steam engine or railroad was thought of . . . we should be met by difficulties of the gravest character.[6]

Implicit in the Court’s opinion is an insight into the dilemma posed by the creation of transformative technologies. On one hand, technological innovations carry an enormous promise: the potential to transform society for the better. At the same time, even the most promising inventions can bring with them serious threats to the safety of the community. Therefore, there is danger in not regulating a new technology to ensure its safe operation, just as there is danger in regulating it so much that the regulation restricts economic growth.

While this language was written decades before the invention of the automobile, the words still ring true today. In the ridesharing context, there are two weighty public policy interests at play. First and foremost, as demonstrated above, there are legitimate public safety concerns inherent in a transportation service like ridesharing. Yet, this must be viewed through an economic lens as well. After all, ridesharing companies offer an innovative service that helps distribute scarce resources by providing a low-cost alternative to traditional taxis. This service benefits customers, and it also creates jobs. Therefore, the fairest and most effective regulatory scheme will carefully balance these two competing policy objectives.

This balancing, however, is not easily done. Should ridesharing companies like Uber and Lyft be subject to the same standards as taxicab companies, such as Yellow Cab? How can regulators and legislators put in place rules that promote public safety without undermining the competitive advantage enjoyed by ridesharing? This Note proposes an answer to these difficult questions. Part I asks the question of whether ridesharing should be regulated, and submits that doing so would not only better protect the public, but also shore up the ridesharing business model. Part II lays out the regulatory landscape of ridesharing, focusing on the pressing issue of insurance liability. Ultimately, Part III proposes a roadmap for regulating ridesharing services—one that is fair, practical, and tailored to fit the needs of ridesharing companies, its customers, and the general public.

I. The Need for Ridesharing Regulation

Ridesharing closely resembles the services provided by traditional taxicab companies, although there are important distinctions between the two services. At its most basic, the ridesharing routine is the same as with taxicabs: a customer requests a ride, the driver takes the customer to the destination, and the customer pays for the ride.[7] However, unlike traditional cab services, ridesharing companies do not dispatch drivers, nor do they own the vehicles used to give rides.[8] Furthermore, companies like Uber and Lyft do not employ their drivers or dictate their work schedules, allowing drivers to choose to provide rides as frequently or infrequently as they wish.[9] In essence, these companies self-identify as smartphone application developers that merely license their technology to independent drivers.[10]

But the question remains as to whether ridesharing poses risks to consumers and the general public, and if so, how to ensure regulation does not restrict the economic potential of ridesharing. To determine whether ridesharing companies should be regulated, it is useful to examine the impact of such companies, both positive and negative. The foremost benefit such companies provide is a dependable, convenient, and low-cost alternative to traditional taxicabs.[11] Although the competitive advantage of ridesharing has led, at least in part, to a decline in the taxicab industry, ridesharing undeniably gives consumers access to more transportation options.[12] Furthermore, ridesharing has the potential to benefit the general public by combatting widespread transportation and environmental issues such as traffic congestion and pollution.[13]

But these economic and social improvements must be considered in light of the potentially harmful effect ridesharing could have on consumers and the general public.[14] Several public policy problems stem from the regulation—or lack thereof—of ridesharing companies, including but not limited to taxation, worker’s rights, licensing, background checks, distracted driving and other safety issues.[15] But perhaps the most pressing issue concerns insurance coverage. There is significant ambiguity regarding who is liable when an accident occurs—the driver or the ridesharing company.[16] If companies like Uber and Lyft are merely smartphone application providers and truly have an indirect involvement in the provision of ridesharing, then their liability for their drivers’ accidents should be minimal.[17] Jurisdictions that have not regulated ridesharing tacitly agree with this argument by allowing ridesharing companies to determine how much insurance—if any—they wish to provide for their drivers. The result is that ridesharing drivers’ liability in the event of an accident depends largely on the whims of their affiliated ridesharing company rather than a standardized and enforceable framework.

This regulatory vacuum is dangerous, particularly in the insurance context. A ridesharing company’s commercial insurance covers a driver when the driver’s smartphone application is turned on and there is a customer in the vehicle.[18] However, its insurance does not cover a driver when the application is turned off.[19] In that situation, ridesharing companies argue that the driver is supposed to be covered by his or her personal car insurance.[20] Insurance providers, however, tend to disagree.[21] They consider ridesharing drivers to be involved in commercial activity and thus refuse to let ridesharing drivers use their personal insurance to cover accidents that happen on the job.[22] Insurers have clearly stated that “vehicles used for transporting passengers for a charge” are not covered by personal car insurance policies.[23] Consequently, some insurance providers have actually canceled the policies of customers who drive for Uber and Lyft.[24] And in some instances, insurers have even denied insurance applications based on an applicant’s intent to drive for a ridesharing company.[25] Thus, although ridesharing companies maintain that their drivers are covered by personal car insurance when their smart phone application is turned off, that is often not true.

Furthermore, ridesharing drivers run the risk of liability even when their smartphone application is activated.[26] As noted above, drivers are covered by commercial insurance when their smart phone application is on and they are driving customers, but they are not covered by the commercial policy when the application is on and they are not carrying any passengers.[27] Therefore, since personal car insurance does not cover such commercial activity, drivers who are merely seeking customers run the risk of falling into an “insurance gap” in the event of an accident. Such was the case of Syad Muzzafar, the Uber driver who struck and killed Sophia Liu in San Francisco.[28] At the time, the driver was in between passengers but had not yet picked up another customer.[29] As a result, the driver’s insurance policy only provided a maximum of $15,000 to the victim’s family.[30] The company denied any liability for the accident, stating that “[t]he driver in question was not providing services on the Uber system during the time of the accident.”[31] This is only one example of the dire need for insurance standards in the ridesharing industry.

Instituting such standards would protect drivers, passengers, and the general public as a whole, and it also has the potential to actually improve the bottom line of ridesharing businesses like Uber and Lyft. The enactment of ridesharing standards will provide regulatory certainty for ridesharing companies, allowing them to continue to grow their companies with less fear of how the government might intervene in the future.[32] This incentive had been demonstrated when ridesharing companies welcome the opportunity to work with local governments toward the regulation of their industry.[33] In turn, such third-party oversight will in theory inspire greater consumer confidence in the safety of ridesharing services.[34] Therefore, the prospect of a win-win-win outcome will incentivize regulators to promptly put in place standards that protect ridesharing companies and those affected by them.

II. Potential Regulatory Frameworks: California and Colorado Case Studies

The law has struggled to keep pace with rapid advance of the ridesharing economy. One reason for this is ridesharing is difficult to regulate, as it exists in a legal gray area.[35] As mentioned above, ridesharing providers are situated somewhere between traditional taxicab companies and smartphone application developers, and thus they have tended to disregard existing laws that are not specifically tailored to ridesharing.[36] Moreover, ridesharing services defy categorization into traditional regulatory frameworks, preventing many governments from developing tailored policy approaches to ridesharing.[37]

Some states and municipalities, nevertheless, have begun regulating ridesharing companies. Although Congress has yet to legislate on the issue, some state and local governments have passed legislation or promulgated rules regarding services like Uber and Lyft.[38] The approaches differ greatly. For instance, some jurisdictions have banned most ridesharing services outright.[39] In the Commonwealth of Virginia, for example, ridesharing companies until recently were subject to civil penalties if they continued operating there.[40] In doing so, the state was adhering to its law that requires state authorization for passenger vehicles that are for-hire and it issued cease-and-desist orders to ridesharing companies that continued operations in Virginia.[41] The Department of Motor Vehicles found that, since drivers for companies like Uber get compensation for their services, they are more than just casual carpoolers.[42] Similarly, other state and local governments have suspended the operation of ridesharing services while they devise an appropriate regulatory framework.[43] Several states on the forefront, however, have taken the initiative and passed legislation regulating ridesharing services.[44]

A. California

In 2013, California became the first jurisdiction to legalize ridesharing.[45] Before regulations were put in place, the policy of the California Public Utilities Commission (“CPUC”) was to issue fines and cease-and-desist letters to ridesharing companies, but it later allowed the companies to operate on an interim basis while draft regulations were considered.[46] The CPUC ruled that ridesharing services did not accord with any of the three existing regulatory categories: taxicab companies, charter-party carrier services (i.e., livery vehicles), or passenger-stage companies (e.g., airport shuttles).[47] Nevertheless, standards regulating the ridesharing industry were put in place, but they were promulgated under a completely new classification of transportation services called “Transportation Network Companies” (or “TNCs”).[48] According to the CPUC, this new category of services consists of “companies that provide prearranged transportation services for compensation using an online-enabled application (app) or platform to connect passengers with drivers using their personal vehicles.”[49] Ridesharing companies like Uber and Lyft fall under this definition, but traditional taxis and casual carpoolers do not.[50]

Under California law, TNCs are subject to five key insurance-related provisions in the new regulations.[51] Perhaps the most important is the requirement that ridesharing companies provide insurance from the moment a driver turns on his or her smartphone application.[52] As noted above, this cuts against the general practice of ridesharing companies, which is to cover their drivers with commercial insurance only when their application is in use and there are passengers in the car.[53] In addition to being responsible for closing this insurance gap, TNCs are required to provide, at a minimum, $1 million in coverage.[54] This requirement lasts from the time a customer is picked up until the passenger has left the vehicle.[55] Drivers for TNCs, however, are also subject to additional insurance regulations. Drivers are responsible for maintaining primary commercial liability insurance coverage of at least $50,000 per person and $100,000 per occurrence of death and personal injury, as well as $30,000 for property damage.[56] In addition, drivers are also required to carry proof of their personal and commercial insurance coverage, and they must be at least twenty-one years of age a year or more of driving experience.[57] Lastly, the regulations call for the expedited review of new insurance policies that are tailored to the needs of TNC drivers.[58] Enforcement of these new regulations was delayed for one year and became subject to review by the CPUC after they were in place for the first year.[59] Although not all ridesharing companies were initially supportive of such regulations, the tide has begun to turn.[60] Notably, ridesharing companies have formed a coalition with insurance providers and government regulators, in order to collaborate on how to best comply with the new ridesharing rules.[61]

B. Colorado

Additionally, the State of Colorado has passed legislation enacting insurance regulations for ridesharing companies.[62] Like the California rules, the legislation puts in place new provisions that are unique to ridesharing companies and also classifies the provisions as “Transportation Network Companies.”[63] The Colorado legislation, however, defined TNCs differently than California’s regulations. Under the Colorado statute, a TNC is a company that “uses a digital network to connect riders to transportation network company drivers for the purpose of providing transportation” and “does not provide taxi service, transportation service arranged through a transportation broker, ridesharing arrangements, . . . or any transportation service over fixed routes at regular intervals.”[64] This definition nevertheless still subjects companies like Uber and Lyft to TNC rules and regulations. At the same time, the legislation exempts TNCs from the regulations imposed on common carriers, contract carriers, and motor carriers.[65] TNCs are also exempt from much of the Colorado Public Utilities Commission’s authority, including its ability to regulate rates.[66] The new legislation, however, does put in place a key regulation: it closes the insurance gap by requiring TNCs to provide commercial insurance coverage once the application is turned on, regardless of whether the driver is carrying a passenger.[67] This emphasis on commercial insurance rather than the driver’s personal policy is notable because, absent such a requirement, insurers would have had to raise rates for all vehicle policies in the state, regardless of whether they were used for ridesharing services.[68]

Like California, Colorado requires TNCs to provide a minimum of $1 million in liability coverage.[69] Notably, Uber voluntarily provides $1 million in liability coverage beginning when a driver accepts a trip request.[70] Colorado’s legislation, however, goes further. It requires such coverage whenever the smartphone application is activated, irrespective of whether the driver has been matched with a passenger or is in route to pick one up.[71] This covers a larger portion of the insurance gap than either California’s insurance requirement or Uber’s voluntary commitment, neither of which mandate liability coverage until a passenger is assigned to the driver.[72] In addition, in Colorado, personal insurance policies must cover at least $50,000 per person and $100,000 per occurrence of death and personal injury, as well as $30,000 for property damage.[73] This amount, however, will be the subject of a required state agency study and could be increased in the future.[74] The ridesharing industry reaction to the passage of the legislation was overwhelmingly positive.[75]

Although there are differences between California and Colorado’s insurance regulations, both have reclassified ridesharing as a wholly unique service, treating it differently from traditional taxicab providers. Furthermore, both regulatory frameworks agree that ridesharing companies should be responsible for closing the insurance gap. This consensus should not be overlooked as policymakers in other jurisdictions contemplate putting in place ridesharing regulations.

III. Which Regulations Work Best For Ridesharing?

As discussed above, the need for ridesharing standards is clear. Regulation not only protects drivers, passengers, and the general public as a whole, but it also has the potential to actually help the bottom line of ridesharing companies. The more difficult determination is what these regulations should look like.

Effective regulation requires legally classifying ridesharing companies as their own unique category of transportation. As understood by states like California and Colorado, it does not make sense to try to regulate ridesharing drivers as if they were taxicabs or livery vehicles.[76] This square-peg-round-hole problem is best solved by developing a completely new classification (i.e., “Transportation Network Companies”) for ridesharing. The definition of a TNC should emphasize that TNCs are neither taxicab companies nor involved in traditional/informal ridesharing, as the Colorado legislature has specifically stated.[77]

Furthermore, regulators must close the insurance gap for ridesharing drivers. The surest way of doing so entails, for one, requiring TNCs to provide a minimum amount of $1 million in liability coverage for their drivers.[78] Crucially, this coverage should mirror Colorado’s framework and kick in whenever the smartphone application is activated, irrespective of whether the driver has been matched with a passenger or is in route to pick one up. This will prevent drivers from having to shoulder too much financial risk. Furthermore, by placing more responsibility on TNCs (and therefore less on drivers’ personal policies), it prevents insurers from raising rates for all vehicle policies, regardless of whether they were used for ridesharing services.[79] That said, this arrangement does not work without baseline requirements for ridesharing drivers’ personal insurance policies. State and local governments should follow California’s example and hold drivers responsible for maintaining substantial primary liability insurance coverage.[80] Regulators can help ridesharing drivers comply with this requirement by ensuring expedited review of new insurance policies that are tailored to the needs of TNC drivers.[81] In sum, these insurance fixes will help create a more even distribution of financial risk among ridesharing companies and their drivers. More importantly, these regulations will help ensure that claimants in ridesharing-related actions have a better chance of obtaining full recovery.

IV. Conclusion

By expanding consumer choice and providing an efficient, dependable, and inexpensive alternative to other modes of transportation, ridesharing companies provide a net-benefit to society. At the same time, there are nevertheless dangers that come along with the rise of ridesharing. Governments, then, should not only put in place new ridesharing standards, but also ensure that such regulation does not come at the expense of the viability of the industry. To help achieve this goal, legislators and regulators should focus their efforts on solving pressing policy problems. As a first step, the ridesharing should be classified as a unique service and treated differently than traditional taxicab companies. Other jurisdictions should strongly consider California’s definition of Transportation Network Companies: companies “that provide[] prearranged transportation services for compensation using an online-enabled application (app) or platform to connect passengers with drivers using their personal vehicles.”[82] Furthermore, minimum insurance coverage baselines for companies and their drivers will provide a stronger safety net for those involved in ridesharing-related accidents. Specifically, states should require TNCs to provide at least $1 million in liability coverage for their drivers, and drivers should also need substantial primary liability insurance coverage—at least $50,000 per person and $100,000 per occurrence of death and personal injury. Lastly, ridesharing companies must be required to provide insurance coverage from the moment the smartphone application is turned on so that drivers and accident victims have much fuller legal and financial protection in the event of an accident. With these vital protections in place, we can help the ridesharing industry continue to provide its innovative services while also ensuring they shoulder a fair share of the risk they create. Legislators and policymakers would be wise to adopt this approach as a first—but crucial—step toward the reasonable regulation of ridesharing.


[1] J.D. expected, May 2016, University of Kentucky College of Law.

[2] Josh Constine, Uber’s Denial of Liability in Girl’s Death Raises Accident Accountability Question, TechCrunch (Jan. 2, 2014), http://techcrunch.com/2014/01/02/should-car-services-provide-insurance-whenever-their-driver-app-is-open/.

[3] Patrick Hoge, California May Expand Insurance Rules for Uber, Lyft et al., San Francisco Business Times (Mar. 25, 2014, 10:38 AM), http://www.bizjournals.com/sanfrancisco/blog/2014/03/california-insurance-rules-uber-lyft.html?page=all.

[4] Id.

[5] Bridge Proprietors v. Hoboken Co., 68 U.S. 116, 118 (1864).

[6] Id. at 146-47.

[7] Odette Yousef, Ridesharing vs. Taxicabs: The Inside Story, WBEZ (June 5, 2014), http://www.wbez.org/news/rideshare-vs-taxicabs-inside-story-110296.

[8] Id.

[9] Id.

[10] Adam Cecilon, The Insurance Secret that Uber Doesn’t Want You to Know, PolicyGenius Blog (Oct. 8, 2014), http://www.policygenius.com/blog/insurance-secret-uber-doesnt-want-know/.

[11] Peter Schworm, Passengers in the Middle of Ride-sharing Dispute, Boston Globe (Dec. 2, 2014), http://www.bostonglobe.com/metro/2014/12/02/city-council-hearing-discuss-potential-uber-lyft-regulation/a02o5C5DmnSc2LOarCpC9N/story.html.

[12] See, e.g., Megan Garber, After Uber, San Francisco Has Seen a 65% Decline in Cab Use, The Atlantic (Sept. 17, 2014), http://www.theatlantic.com/technology/archive/2014/09/what-uber-is-doing-to-cabs-in-san-francisco-in-1-crazy-chart/380378/.

[13] The Power of Connection: Peer-to-Peer Businesses: Hearing Before H. Comm. On Small Bus., 113th Cong. 6 (2014) (“Th[e] adoption of ride-sharing has the potential to produce large-scale public benefits, including easing traffic congestion and the strain on existing infrastructure, reducing pollution, and fostering a sense of community, all while providing car owners an opportunity to offset the cost of car ownership.”). These benefits are generated simply by people riding together who would otherwise be in separate vehicles. But ridesharing companies also augment these benefits, especially in the context of traffic congestion. For example, Uber developed a smartphone application that draws on a wealth of traffic-related data to help drivers find the most efficient route. Ryan Lawler, Uber Adds Turn-By-Turn Directions to Its Driver App, TechCrunch (Aug. 13, 2014), http://techcrunch.com/2014/08/13/uber-turn-by-turn-directions/.

[14] See generally Molly Cohen & Corey Zehngebot, What’s Old Becomes New: Regulating the Sharing Economy, 58 Boston Bar J. 34 (2014).

[15] Id.; Cecilon, supra note 10.

[16] Cecilon, supra note 10.

[17] Id.

[18] See, e.g., Nairi Hourdajian, Insurance for UberX with Ridesharing, Uber Blog (Feb. 10, 2014), http://blog.uber.com/ridesharinginsurance (detailing Uber’s insurance policy).

[19] Id.

[20] Id.

[21] Cecilon, supra note 10.

[22] Id.

[23] Jon Brooks, Confusion Over Insurance For “Ride-Sharing” Drivers, KQED.org: News Fix (Nov. 19. 2013), http://ww2.kqed.org/news/2013/11/14/who-pays-when-ride-share-driver-crashes.

[24] Jon Brooks, How Many Ride-Share Drivers Are Hiding Status From Insurers?, KQED.org: News Fix (Jan. 21, 2014), http://ww2.kqed.org/news/2014/01/20/ride-sharing-insurance-lyft-uberx-sidecar/.

[25] Id.

[26] Cecilon, supra note 10.

[27] Id.

[28] Marcus Wohlsen, Why Uber’s Fate Could Hinge on This Tragic Accident, Wired.com (Jan. 29, 2014, 6:30 AM), http://wired.com/2014/01/uber-wrongful-death. Uber and Sophia Liu’s family have since settled the lawsuit. Zach Miners, Uber Settles Suit over Girl Killed by Driver, PC World (July 14, 2015, 5:50 PM), http://www.pcworld.com/article/2948492/uber-settles-suit-over-girl-killed-by-driver.html.

[29] Id.

[30] Alexa Vaughn, Uber, Lyft Expanding Driver Insurance Coverage, Seattle Times (Mar. 14, 2014, 3:00 AM), http://seattletimes.com/html/localnews/2023125386_uberinsurancexml.html.

[31] Wohlson, supra note 28.

[32] The Power of Connection: Peer-to-Peer Businesses, supra note 13 at 6.

[33] Johana Bhuiyan, Here Is Where Uber and Lyft Are Facing Regulation Battles in the United States, BuzzFeed, (Dec. 15, 2014, 4:29 PM), http://www.buzzfeed.com/johanabhuiyan/here-is-where-uber-and-lyft-are-facing-regulation-battles-in#.ftEkba0vVA.

[34] Deven R. Desai, The New Steam: On Digitization, Decentralization, and Disruption, 65 Hastings L.J. 1469, 1477-80 (2013).

[35] Cohen & Zehngebot, supra note 14.

[36] Desai, supra note 34, at 1478.

[37] Id.

[38] Curtis Skinner, New Orleans Authorizes Uber—But Not UberX, Business Insider (Sept. 5, 2014, 8:02 AM), http://www.businessinsider.com/r-new-orleans-council-clears-uber-others-to-offer-luxury-online-taxi-service-2014-9.

[39] Sam Frizell, 5 Places Where Uber Is Fighting for Its Life Right Now, Time.com (Dec. 8, 2014), http://time.com/3623241/uber-battles (discussing locales which have banned or severely constrained Uber operations, including Portland, Oregon, and the State of Nevada).

[40] Paul Frisman, Uber’s On-demand Car Service, Conn. Office of Legislative Research 4 (June 19, 2014), http://cga.ct.gov/2014/rpt/pdf/2014-R-0173.pdf (discussing different state approaches, including Virginia). Virginia legalized ridesharing earlier this year. Luz Lazo, Uber and Lyft Are Now Legal in Virginia, Washington Post (Feb. 18, 2015), http://www.washingtonpost.com/blogs/dr-gridlock/wp/2015/02/18/uber-and-lyft-are-now-legal-in-virginia/.

[41] Paul Frisman, Uber’s On-demand Car Service, Conn. Office of Legislative Research 4 (June 19, 2014), http://cga.ct.gov/2014/rpt/pdf/2014-R-0173.pdf; Lazo, supra note 40.

[42] Paul Frisman, Uber’s On-demand Car Service, Conn. Office of Legislative Research 4 (June 19, 2014), http://cga.ct.gov/2014/rpt/pdf/2014-R-0173.pdf.

[43] Paul Frisman, Uber’s On-demand Car Service, Conn. Office of Legislative Research 4 (June 19, 2014), http://cga.ct.gov/2014/rpt/pdf/2014-R-0173.pdf; Lazo, supra note 40.

[44] Josh Richman, Uber, Lyft, Sidecar: New Insurance Requirements Approved by California Legislature (Aug. 28, 2014, 6:55 PM PDT), http://www.mercurynews.com/california/ci_26428057/california-senate-approves-new-insurance-requirements-uber-lyft; Andy Vuong, Colorado First to Authorize Lyft and Uber’s Ridesharing Services, Denver Post (June 5, 2014, 5:06:32 PM MDT), http://www.denverpost.com/business/ci_25907057/colorado-first-authorize-lyft-and-ubers-ridesharing-services?source=infinite.

[45] Tomio Geron, California Becomes First State to Regulate Ridesharing Services Lyft, Sidecar, Uber, Forbes (Sept. 19, 2013, 3:40 PM), http://www.forbes.com/sites/tomiogeron/2013/09/19/california-becomes-first-state-to-regulate-ridesharing-services-lyft-sidecar-uberx/.

[46] Id.

[47] Decision 13-09-045 Adopting Rules and Regulations to Protect Safety While Allowing New Entrants to the Transportation Industry, Cal. Pub. Utilities Comm’n 11 (Sept. 23, 2013), http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M077/K192/77192335.PDF.

[48] Geron, supra note 45.

[49] Press Release, California Public Utilities Commission, CPUC Establishes Rules For Transportation Network Companies (Sept. 19, 2013), http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M077/K132/77132276.PDF.

[50] Geron, supra note 45.

[51] Assemb. B. 2293, 2013-2014 Assemb., Reg. Sess. (Cal. 2014), available at http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB2293.

[52] See id.

[54] Id.

[55] Id.

[56] Assemb. 2293 §5433(c)(1), 2013-2014 Assemb., Reg. Sess. (Cal. 2014), available at http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB2293.

[57] Decision 13-09-045 Adopting Rules and Regulations to Protect Safety While Allowing New Entrants to the Transportation Industry, Cal. Pub. Utilities Comm’n 26-27 (Sept. 23, 2013), http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M077/K192/77192335.PDF.

[58] Id. § 5438.

[59] Geron, supra note 45.

[60] California Welcomes Insurance Coalition for Ride Sharing, Uber Joins In, GovTech.com, (Feb. 10, 2014), http://www.govtech.com/state/California-Welcomes-Insurance-Coalition-for-Ride-Sharing-Uber-Joins-In.html.

[61] Id.

[62] S.B. 14-125, 69th Gen. Assemb., Reg. Sess. (Colo. 2014), available at http://www.leg.state.co.us/clics/clics2014a/csl.nsf/fsbillcont2/70364091166B28FC87257C4300636F6B/$FILE/125_01.pdf.

[63] Id. at 2, 6.

[64] Id. at 6.

[65] Id. at 2.

[66] Id.

[67] Niraj Chokshi, Colorado Passes Nation’s First Law Regulating UberX, Lyft, Washington Post (June 6, 2014), http://www.washingtonpost.com/blogs/govbeat/wp/2014/06/06/colorado-passes-nations-first-law-regulating-uberx-lyft/.

[68] See Vuong, supra note 44.

[69] Kelli Kelty, Colo. Legislative Counsel Staff, Transportation Network Companies, Gen. Assemb. 14-07, Reg. Sess. (2014), available at http://cdn.colorado.gov/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1252019169757&ssbinary=true.

[70] Nairi Hourdajian, Eliminating Ridesharing Insurance Ambiguity, Ins. Note (Mar. 14, 2014), http://insurancenote.net/warranty-entitling-the-holder-to-care-at-home/eliminating-ridesharing-insurance-ambiguity/.

[71] Norma B. Levy & Louis H. Kozloff, Ridesharing Presents Challenges and Opportunities for Insurers, Property Casualty 360º, (Oct. 21, 2014), http://www.propertycasualty360.com/2014/10/21/ridesharing-presents-challenges-and-opportunities?page=2.

[72] See id.

[73]Insurance Designed with Uber in Mind, Uber, http://uberxcolorado.com/drive/?page_id=483 (last visited Sept. 17, 2015).

[74] Chokshi, supra note 67.

[75] See Colorado Makes Uber History, Uber Newsroom, (June 5, 2014), available at http://newsroom.uber.com/denver/2014/06/colorado-makes-uber-history-2/ (Uber calling the regulations “stringent” yet “sensible.”). Kathleen Lavine, Colorado Passes Bill Legalizing UberX, Lyft, Denver Bus. J. (Apr. 29, 2014, 5:46 PM MDT), available at http://www.bizjournals.com/denver/blog/boosters_bits/2014/04/colorado-passes-bill-legalizing-uberx-lyft.html (Lyft saying were “thrilled” by the “rigorous set of safety standards.”).

[76] See Decision 13-09-045 Adopting Rules and Regulations to Protect Safety While Allowing New Entrants to the Transportation Industry, Cal. Pub. Utilities Comm’n 2 (Sept. 23, 2013), http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M077/K192/77192335.PDF.

[77] S.B. 14-125, 69th Gen. Assemb., Reg. Sess. (Colo. 2014), http://www.leg.state.co.us/clics/clics2014a/csl.nsf/fsbillcont2/70364091166B28FC87257C4300636F6B/$FILE/125_01.pdf.

[78] Hourdajian, supra note 70.

[79] Andy Vuong, Colorado Lawmakers Still Wrangling Insurance for Lyft, UberX, Denver Post (Apr. 2, 2014, 6:41:13 PM MDT), http://www.denverpost.com/business/ci_25480333/colorado-lawmakers-still-wrangling-insurance-lyft-uberx.

[80] See Assemb. B. 2293 § 5433, 2013-2014 Assemb., Reg. Sess. (Cal. 2014), available at http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB2293.

[81] See id. § 5438.

[82] See Decision 13-09-045 Adopting Rules and Regulations to Protect Safety While Allowing New Entrants to the Transportation Industry, Cal. Pub. Utilities Comm’n 2 (Sept. 23, 2013), http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M077/K192/77192335.PDF.