The California Public Utilities Commission recently sent letters to transportation network companies Uber, Lyft and Sidecar asking them to cease operations of their new carpooling features, on grounds that the companies are violating California law. All three companies launched carpool services last month that allow strangers from various areas who are heading to the same destination to ride in the same car. Called UberPool, Lyft Line and Sidecar’s Shared Rides, the services charge each passenger an individual fare. According to the CPUC, this is illegal under California law because carpool operators are required to charge the entire group according to mileage or duration of travel.
Additionally, the companies were required to communicate with the CPUC and submit permit requests before offering new services to consumers. Uber has not done either of these things, despite launching the beta version of UberPool last month, and Lyft began operation of Lyft Line in Los Angeles this week, notwithstanding the CPUC’s stance on the service’s legality. Sidecar announced they are reviewing their options in order to legally operate their carpool services in California. For the moment, the future of TNC carpool services is unclear, raising yet another point of contention between regulators and TNCs.
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