It looks like a fork in the road for the likes of Lyft, Sidecar and Uber.
On Tuesday, the California Public Utilities Commission issued a proposal to legalize and regulate the rideshare startups by creating a new transit class — separate from taxi and limo services — called transportation network companies. The rulemaking comes nearly a year after the CPUC slapped the companies with fines and cease-and-desist orders before reaching an interim agreement for continued operation. The proposal, expected to be finalized in September, maps out what the rideshare firms must do in order to get a TNC license. Among other things, the proposal stipulates that drivers must be screened through criminal background checks, vehicles must be inspected, and companies must carry a minimum of $1 million per incident insurance coverage.
