Companies like Uber and Lyft are now recognized by California as “New Online Enabled Transportation Services” (NOETS). With the 28 rules and regulations set by the California Public Utilities Commission (CPUC), ridesharing companies can operate within the state without worrying about penalties and fines.
Ridesharing companies have seen legal issues in other states like New York, but rideshare companies continue to operate and expand into new markets in the United States and abroad.
The main point of the approval is the definition of a Transportation Network Company (TNC), the second name for NOETS, goes beyond what rideshare companies are defining themselves as, but specifying that a TNC is:
Essentially any service that uses an app or online platform to connect passengers to personal vehicles could be considered a TNC.
To combat the broad definition, the CPUC is requiring an issued permit, establish a driver training program, zero-tolerance drug and alcohol policy, and require a specified insurance policy. The PDF is available for more details on the 70+ page decision.
California could set the precedent for rules around ridesharing services that operate in other states.