How Governments are Regulating Rideshare Companies – Scooptimes

The ridesharing industry has come with one of the biggest revolutions in the transport industry. These useful applications are very easy to use, and anyone from anywhere can book a ride and reach their desired destination in no time, without hassle.

Some of the popular companies like Lyft, Uber, and Didi Chuxing allow individuals to utilize the services at their doorsteps, where the customers are getting all the convenience they want.

There has been exceptional growth in this industry since it has come into being. But one thing that needs to be noticed here is the impact of the service globally and how governments are regulating the rideshare companies overall.

An Uber and Lyft sexual assault lawyer can help understand that better.

The Current Status of the Ridesharing Industry

The services provided by the ridesharing industry are no doubt appreciated by everyone and are responsible for the hassle-free help that everyone deserves. The passengers are extremely happy that they can go anywhere without taking their own cars on the roads.

While the consumers are seen to be really satisfied when it comes to the drivers, they do have their own concerns they report having flexible hours of work, and one of the concerns that they share is that they want to deal with a fee structure that is not very rigid.

In such settings, it has been difficult for the drivers to manage. They say that the taxi industry cannot compete in such settings where they have to deal with a number of negative impacts.

So, in some of the areas, it can be said that the ridesharing companies are compromising to make both the passengers and the drivers happy. But still, some of the legal considerations are left unresolved, just like the case with fixed pricing.

Government Regulations

The Government does regulate the rights of sharing companies by following some of the legislation, safety standards, and some other measures. So, let’s have a look at some of the common ridesharing aspects.

Insurance Requirements: The ridesharing companies need to provide some insurance that can cover the damages for the passengers or the drivers, or whoever gets injured during an incident. This is purely with the purpose of making sure that all the parties suffering from an incident are safe and sound.

Background Checks: The government a lot of times makes it mandatory for ride-sharing companies to do a detailed and thorough check before they hire drivers for the cars. This background check does include previous driving experience or any police or criminal record of the rider.

Permits and Licensing: In order to operate legally, a lot of governments ask for licenses and special driving permits for driving in many areas of the world. This implies that the driver has a proper background check and knows about insurance policy and the other related regulations.

Fare Regulation and Pricing: Some governments do focus on setting some price rules so that there is no unfair treatment with anyone. This can include setting the maximum or minimum fee. Or it can also be about the price raises at the peak hours. So, the government makes sure that justice is served and nobody gets to be a victim of unfair treatment.

Accessibility Needs: Some governments do need and ask for the ride-share companies to provide vehicles that are suitable for the people that are disabled. This includes having support for the people that can cannot move properly or it can be wheelchair accessibility.

Environmental Requirements: Governments all over the world are becoming extremely concerned about the impact of ride-sharing services. There has been some exploration being done in some regions where the emphasis had been on the use of electric cars instead of the ones that run on fuel.

Dispute Resolution: To handle the disputes and complaints of the customers, governments might establish procedures. This can help in addressing the disputes so that fair process handling can be done. This can ensure that all of the victims with any kind of complaints can be tackled well.

Classification of Workers: The classification when it comes to the workers holds a lot of importance. Governments all over the world are debating if the drivers should be called as independent contractors or they should be considered as an employee of the company because both have different implications for labor rights.


When it comes to ride-share companies and the services that they provides, they are known to give you with the best facilities, keeping in mind the convenience of the customers. But at the same time, the challenges faced by the companies cannot be ignored. However, with some helpful strategies used by the government, the rideshare companies have been seen going through some changes in between as well.