(San Francisco, CA) – The California State Assembly passed legislation authored by Assemblymember Phil Ting (D-San Francisco) 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.
Assembly Bill (AB) 1360 passed with a 69-0 vote and passes to the State Senate for further review.
“With climate change accelerating, we must take a hard look at transportation because it is the largest single source of emissions,” said Ting. “We have long encouraged public transit and carpooling to reduce traffic and air pollution. Extending the environmental mindset to ridesharing requires changing a fifty year old law. That’s what this is all about.”
Ridesharing companies rolled out 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 (PUC) that the Legislature needs to update state law to authorize multiple passengers to share rides through TNCs. The PUC has given the companies a chance to petition the Legislature for a change in law. 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.
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.
Here is what supporters of AB 1360 are saying.
“The transportation sector is the largest source of pollution in California and we need a portfolio of innovative solutions to reverse that trend. 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.”
-Lauren Faber, West Coast Political Director, Environmental Defense Fund
“The state has invested resources to support carpooling, including construction of high-occupancy vehicle lanes and implementation of employer-based trip reduction programs. Ridesharing services offered by TNCs can supplement and fortify these efforts. Innovation in mobility services is critical to the state’s ability to meet our long-term climate, energy and land use objectives.”
-Amanda Eaken, Deputy Director, Urban Solutions Program, Natural Resources Defense Council
“Public transportation and ridesharing started in San Francisco. They complement each other by making it easier for residents, commuters and visitors to get around. Ridesharing companies should not be prevented from being part of the solution towards more affordable and environmentally responsible transportation.”
-Joel Ramos, Regional Planning Director, Transform
“AB 1360 would be a benefit for consumers looking for a cheaper alternative to solo rides, and a benefit to the environment as we get more people sharing rides and to our urban areas as we get a new tool to reduce congestion.”
-Jonathan Parfrey, Executive Director, Climate Resolve
"It is time for the law to catch up with the way Californians live, work and play. 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."
-John Doherty, Vice President, TechNet
“This measure is squarely in line with well-established California public policy that broadly encourages carpooling to reduce traffic congestion and air pollution. AB 1360 also furthers California’s commitment to the environment on other fronts, such as by enhancing our state’s greenhouse gas reduction efforts.”
-Robert Callahan, Executive Director for California, Internet Association
“…Convenient and affordable transportation options created by the rapid growth of ridesharing are critical to meeting our region’s severe traffic congestion program. TNCs offer Californians new economic opportunities across the state. Their continued growth supports the state’s multi-billion dollar investments in carpooling and can help achieve the state’s important environmental and energy goals, without public subsidy.”
-Jim Wunderman, President and CEO, Bay Area Council
“By making more efficient use of the current automobile fleet and supporting transit-oriented development, ridesharing innovations can play an important role in reducing criteria air pollutants and reducing greenhouse gas emissions.”
-Carl Guardino, President and CEO, Silicon Valley Leadership Group
“To reduce congestion and keep pace with a growing population, we must increase transportation options for consumers. AB 1360 will reduce traffic and allow the law to keep pace with new technologies.”
-Eric Garcetti, Mayor, City of Los Angeles
Further information about AB 1360 is available at www.leginfo.ca.gov.
CONTACT: Anthony Matthews (Ting), tel. (916) 319-2019, cell (202) 297-3830