In a move that is already sweeping through several states, Georgia lawmakers acted to increase regulatory burdens on ride-sharing companies.
Georgia lawmakers approved legislation earlier this year to regulate the transportation industry, specifically targeting ride-sharing companies like Uber and Lyft. Georgia has consistently been ranked as one of the most business-friendly states and adding more burdensome regulations can negatively impact economic development and job growth.
House Bill 225 was approved in March and requires all drivers to have a certificate of necessity and convenience or medallion. Drivers must undergo background checks, be at least 18 years of age and have liability insurance. However, private companies are allowed to conduct their own background checks. Drivers cannot pick up passengers unless they have maintained insurance that reaches the state’s minimum threshold for liability.
In addition, the General Assembly held the right to cap the maximum amount drivers can charge for a fare. For companies like Uber and Lyft where surge prices increase the normal fare amount during peak travel hours, this new change could have an impact.
The bill intends to regulate the ride-sharing industry similar to rules placed on taxi companies and limousine services. However, lawmakers fail to see the benefits of an innovative ride-sharing network to the local economy as they place new restrictions that hold back growth.
NFIB recognizes that an overbearing regulatory environment can trump innovation. More regulations in the transportation industry can hamper transportation options for employees and businesses alike. Companies like Uber and Lyft may find these new rules expensive or arduous to comply.
