(San Francisco, CA) – Assemblymember Phil Ting (D-San Francisco) announced new legislation to enable transportation network companies (TNCs) - like Lyft, Uber, and Sidecar - to charge split and reduced fares between multiple passengers with similar pickup locations and destinations.
Ting announced the bill at the San Francisco Caltrain Station, where over 12,000 people arrive daily, in order to highlight how on-demand carpooling services can work in tandem with public transportation. The bill faces its first vote today in the Assembly Committee on Utilities and Commerce.
“We have long encouraged public transit and carpooling to reduce traffic and air pollution. We cannot extend this mindset to ridesharing without changing a fifty year old law predating the internet,” said Ting. “By making ridesharing more sustainable, we will create more affordable transportation options and a greener economy.”
Ridesharing companies rolled out the concept of on-demand carpooling last year in select California cities, including San Francisco and Los Angeles, but were notified last Fall by the California Public Utilities Commission that the Legislature needs to update state law to authorize multiple passengers to share rides through TNCs. Until then, expansion of on-demand carpooling is on hold.
Supported by transportation planners, environmental advocates and tech leaders, Ting’s Assembly Bill (AB) 1360 will allow TNCs to offer shared rides to customers with similar pickup locations and destinations, provided that the individual fare for each passenger is less expensive than what would be charged if a single passenger traveled alone.
“Public transportation and ridesharing started in San Francisco. They complement each other by making it easier for residents, commuters and visitors to get around,” said Joel Ramos, Regional Planning Director at Transform, an Oakland-based advocacy group that promotes sustainable community planning. “Ridesharing companies should not be prevented from being part of the solution towards more affordable and environmentally responsible transportation.”
“The transportation sector is the largest source of pollution in California and we need a portfolio of innovative solutions to reverse that trend,” said Lauren Faber, West Coast Political Director at Environmental Defense Fund. “Expanding ride-sharing services to enable carpooling is an exciting new part of the mix; and this bill will help break down regulatory barriers and unlock new business opportunities that cut pollution, increase access to sustainable consumer choices, and save consumers money.”
"It is time for the law to catch up with the way Californians live, work and play," said John Doherty, Vice President of TechNet, an executive driven association of technology companies whose membership includes TNCs. "Whether it is travelers who need a ride to the airport, workers who are carpooling to or from the office, or a group of friends out celebrating responsibly, consumers of all ages and circumstances are increasingly choosing to share rides. This commonsense bill simply says that when Californians agree to share a ride, they ought to only be charged for their portion of the fare."
The statute governing charter party carriers, such as taxis, limousines and now ridesharing companies, was originally written in 1961 with the intent to protect consumers from being forced to share limousine and taxi services with other individuals. The law has not been updated in decades, long before the advent of on-demand technology that allows consumers to choose to share a ride for a reduced fare.
According to the 2010 U.S. Census American Community Survey, San Francisco’s population grows by 161,000 from the migration of commuters each workday. Forty percent of California’s greenhouse gas emissions come from transportation. On average, 80 percent of commuters travel to work alone.
In 2014, according to Caltrans, Bay Area freeway congestion caused over 45 million hours of delays and wasted $291 million worth of fuel.
Further information about AB 1360 is available at www.leginfo.ca.gov.
CONTACT: Anthony Matthews (Ting), tel. (916) 319-2019