Uber, Lyft, and Sidecar Operating Illegal Carpool Services

The popular fleet companies recently rolled out similar carpool services that allow for individual fares to be charged to people who are sharing the same car for transportation. According to the California Public Utilities Commission, this type of service is illegal in the state.

The CPUC sent almost identical warning letters to each of the companies notifying them individual fares for passengers transported in the same vehicle is illegal pursuant to state law.

Denise Tyrrell, director of the CPUC’s safety and enforcement division, said none of the companies contacted the commission prior to introducing the new fleet services, and, “The commission lacks the flexibility to allow a transportation service that is contrary to the statute as approved by the legislature.”

None of the three companies have suspended their carpool services, yet, and they each are working with the commission to find a resolution to the issue. No word on what will happen if the companies and the commission fail to reach some kind of agreement.

Categories: Fleet Management News