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Social Ride Share Services are Now Illegal in California

Social ride share services that have been on the rise such as Uber, Lyft and Sidecar have been notified to stop carpool feature by the California Public Utilities Commission confirms.  The government agency confirmed that it sent two copies of a warning letter to all three peer-to-peer car services.

Sidecar has also revealed on Thursday that it received the letter from the California Public Utilities Commission, which said the ride-sharing service was breaking the law by testing its new Shared Rides, or carpool, feature.

According to CPUC the companies violate the state law prohibiting so-called ‘charter-party carriers’ from charging passengers on an ‘individual-fare basis.’

Charter-party carriers can only charge by time or distance to rent out a vehicle, according to Section 5401 of the state’s Public Utilities Code. Limousines and charter buses also fall into this category.


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Lyft said its LyftLine carpool service helps to improve commutes and contributes to carbon reduction and improved air quality and said it looked forward to having the CPUC to reassess the decision, according to Re/code. “We welcome the opportunity to discuss this new form of shared transit with President Peevey and the CPUC to ensure that residents continue to have access to this innovative and sustainable transportation option.”

Forbes reported that the CPUC invited Uber to try and get the law on charter-party carriers changed. “If Uber believes that § 5401 is outdated, it may petition the Legislature for a modification. Unless and until the Legislature modifies §5401, the Commission must enforce state law.”

Do you believe this new form of carpooling services could help with rush hour traffics around metro areas?

Social Ride Share Services are Now Illegal in California Reviewed by Brandon on 10:13 PM Rating: 5

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