Legislating Transportation Network Companies

Abstract

The rapid expansion of transportation network companies (TNCs), such as Uber and Lyft, has led policy makers across the country to consider legislation to legalize and regulate TNC operations. In 2012, TNCs introduced a new travel option that used digital technology to provide an on-demand and highly automated private ride service, which has received support from consumers and investors. The emergence of TNCs has generated uncertainty about the legal status of TNC services, criticism from the taxicab industry, and concerns about public safety. In almost every U.S. state, policy makers have considered TNC legislation to address these issues, but there is no comprehensive source of information on the content of these policies. In this study, researchers systematically compiled a database of state TNC legislation and evaluated a set of policy issues addressed in the legislation. Thirty-four states and Washington, D.C., enacted legislation to authorize TNC operations through May 2016. These laws addressed policy areas including permits and fees, insurance and financial responsibility, driver and vehicle requirements, operational requirements, passenger protections, data reporting, and regulatory and rulemaking authority. This database can help policy makers navigate the evolving policy considerations presented by the rising popularity—and accompanying controversy—of TNCs. Key policy questions that emerged from this review of state TNC legislation include whether to regulate TNCs; if so, at what level of government; how to harmonize TNC policies with existing taxi and transportation policies; and how to address public safety without suppressing market competition.