Crackdown on Lyft and Uber Might Follow in Other Cities

The ride-sharing service in the form of companies like Lyft, Uber and Sidecar are having to face an increasing regulation requirement that they haven’t had to face in cities like San Francisco, where its focus is more hands-off. The peer-to-peer service has become a rival for the taxi industry and limo services because they cater to a different marketplace. This new marketplace requires different policy to regulate them. Customers’ needs are also different, as they can choose from a variety of rides: from upscale at a lower cost than that of a limo service to a more time-efficient ride than that of a taxi cab.

Fred Wilson, a managing partner at Union Square Ventures, said brushes with regulation is something that comes with industries that are shaking up traditional business models, but people are showing that they want services like Sidecar. READ MORE.

In cities like Seattle, lawmakers are creating policy to restrict the number of drivers available for the service. Seattle may be creating this trend, but will San Francisco follow?

Despite an intense public relations campaign backed by Uber Technologies(UberX is its low-cost service) and Lyft, in particular, Seattle’s council on Thursday voted to cap at 150 the number of drivers allowed to work for an individual peer-to-peer provider. READ MORE

Filed under: Mobile, Today's Mission

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  1. I certainly hope they don’t limit the number of Uber drivers in San Francisco – I am pleased as punch with the service. A lot of other cities have superior taxi availability – but not SF. Thankfully the sharing movement is gaining a lot of momentum and backing by organizations such as As new laws and regulations are being ironed out, there’s a support network in place to make sure the customer’s best interest is represented.

  2. stewart resmer

    California regulators warned four app-based ride companies on Thursday that they haven’t provided some information required to receive state operating permits. The companies in turn said they are working to comply. The move came a day after several San Francisco supervisors blasted the regulators for not cracking down more on the transportation networking companies, or TNCs.

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