(619) 505-7777

Ridesharing bill to quell pricing hikes dies

Bill to stop pricing increases for ridesharing apps goes dead
Photo credit:

A recent bill sponsored by State Sen. Ben Hueso (D) of California to regulate ridesharing prices and increased enforcement of ridesharing rules failed to get passed the Senate Committee today.

Hueso was concerned that without more regulations on ridesharing companies, consumers might be at risk of being taken advantage of, or susceptible to loose security guidelines.

He is now concerned that with the failure of SB 1035, there will be an increase in exploitive business practices.

“The blood is going to be on our hands,” Hueso said.

His colleagues were not impressed with his arguments about increased regulations, instead they proposed to decrease the ones in place for regular taxi services.

“We need to help the taxis out rather than doubling down on an increasingly broken strategy,” said Sen. Ben Allen (D-Santa Monica), who was in opposition of the Hueso's bill.

Hueso is no stranger to automobile-fared transportation, his family holds legacy in San Diego for owning the biggest taxicab service in the area, USA Cab which began in 1982.

He also chairs the Senate’s Energy, Utilities and Communications Committee (SEUCC).

Last year two bills that would have loosened restrictions on ridesharing regulations passed unanimously through the Assembly, but stalled at the SEUCC level, where Hueso has not scheduled votes on either.

Traditional taxi services continue to lose money while app based services continue to rise.

In a recent report, San Francisco taxicab companies had a yearly revenue of $140 million, while Uber saw profits of $500 million which is expected to increase by 200-percent in the coming years according to Travis Kalanick, Uber CEO.

Uber has also made its way to the Capital, spending millions on lobbyists who work with government agencies and influential lawmakers to get a better stronghold on the tap-and-go transportation industry.