PHOENIX - Arizona lawmakers decided ridesharing companies don’t need to follow the same regulations as cab companies.
Arizona Senators voted Wednesday in favor of SB 2266. It says ridesharing drivers don’t need a commercial license.
Ridesharing companies, like Uber, are similar to taxis but instead of calling or hailing a cab, you request a ride via your smartphone.
The other big difference, drivers use their own cars.
President of Total Transit Mike Pinckard says the lack of regulation leads to a gray area for insurance companies.
The current Arizona law says cab companies are required to insure cab drivers full time. Ridesharing companies are not required to do that said Pinckard.
Instead, companies like Uber cover drivers when he accepts a job on his phone app.
Uber says it helps them cut down on costs.
Critics say the lack of regulation will impact all drivers.
The Property Casualty Insurers Association of America (PCI) says, “Arizona drivers will be stuck paying the bill for the ride-sharing companies.”
“SB 2262 enables the ride-sharing companies to duck their responsibility to provide appropriate insurance coverage while Arizona drivers will be forced to unfairly pay the bill,” said Kelly Campbell, PCI vice president for state government relations. “It is wrong and inappropriate for one business to alter another industry’s contract to accommodate their profit. Arizona legislators should reject the new stricter amendments to SB 2262 and consider a bill that will appropriately protect consumers.”