The Regulation of Transportation Network Companies

Abstract

The debate over Transportation Network Companies (TNCs) like Uber and Lyft has become quite polarizing in recent years, leaving many municipalities unsure how to move forward regarding regulation. Municipalities can choose to enforce traditional regulations, applying the same safety standards and supply constraints to TNCs as taxi companies. Or, municipalities can view TNCs as entities different than taxi providers and allow TNCs to regulate themselves through regulatory organizations that operate outside the scope of government intervention. States and cities such as Massachusetts, Colorado, and Houston are pioneers in the regulation of TNCs. However, each city or state has implemented regulations that fall within the spectrum of complete governmental regulation and self-regulation. Ultimately, a moderate approach to regulation of both TNCs and taxi companies is a reasonable response to the TNC debate.