Ride-sharing businesses need a lift from lawmakers

While the Public Regulation Commission is taking a pass on weighing in on regulating ride-sharing companies like Uber or Lyft, the Legislature is picking up the pace.

The PRC last week tabled action on a request from San Francisco-based Lyft to operate in the state — at least until new legislation can be passed and confusion over the new transportation model is cleared up.

The rise of cellphone-based transportation companies has thrown states into a quandary as how to regulate the services that connect people with drivers who want to make some cash by providing rides to people who need to get from Point A to Point B.

The companies contend they are ride-sharing services, not taxis. Taxi companies, which the PRC regulates, see them as competition.

The PRC has been wrestling with whether ridesharing companies are subject to the state Motor Carrier Act. The Legislative Finance Committee’s analysis of proposed legislation to regulate them says that, if the bipartisan bill is not enacted, eventually the PRC will have to decide.

House Bill 272, sponsored by Rep, Monica Youngblood, R-Albuquerque, and Sen. Phil Griego, D-San Jose, motored through the House Transportation and Public Works Committee on Thursday. It would provide a regulatory home for these services.

Uber representatives told the Journal editorial board recently that they welcome regulation so there is no uncertainty in the market.

Ride-sharing is more than calling up a friend and asking for a lift. These companies are in business to make money, as are the drivers, so rules are needed.

But these new, high-tech companies are here to stay. At least in enlightened parts of the country.

The Legislature should provide guidance on whether they fall under the purview of the PRC or if a new niche should be created for them.