Regulation of Uber, Lyft Thrown Into Question by California DMV

As reported by the Sacramento Bee:

California’s burgeoning efforts to regulate ride-for-hire companies like Uber and Lyft have reached a fork in the road after the Department of Motor Vehicles issued an advisory that, in mandating commercial registration, threatens to upend the companies’ business model.

Conceived as an alternative to taxicabs, firms like Uber, Lyft and Sidecar allow people to use their personal vehicles to transport customers who have hailed a ride using a smartphone app. They tout their flexibility and potential for non-professional drivers to make some extra cash.

But the DMV said earlier this month that any time a car is used to transport people in exchange for compensation, that car must have commercial plates – an order that contradicts previous state regulations, according to the industry. …

 

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