Ridesharing companies one step closer to being regulated - FOX 35 News Orlando

House votes to regulate ridesharing companies

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CHICAGO (FOX 32 News) -

Ridesharing companies like Uber-X, Lyft and Sidecar may have to drastically change the way they do business in Illinois.

Thursday, the Illinois House of Representatives passed a bill that would put new regulations in place for rideshare services.

Taxi cab companies, which have lost profits since the arrival of ridesharing in Illinois, have pushed for these companies to be regulated, and lawmakers have voiced concern over driver and passenger safety in the industry. Ridesharing companies and some Republicans say the proposal would all but kill an emerging industry in the state.

The House voted 80-26 on a proposal that would require all ridesharing companies to conduct driver background checks, safety training and have commercial liability insurance. They say those changes would help protect the consumer.

Ridesharing drivers would also be restricted from using taxi loading zones. Those drivers logging more than 18 hours would need registration plates, a chauffeur's license, and vehicle safety inspections.

Ridesharing companies would still be allowed to use price surging, or raising prices in times of high demand.

An attorney for the taxi industry told FOX 32 News' Joanie Lum the cab community is overwhelmingly pleased that the House is working to regulate these ridesharing companies.

A spokesperson for Uber expressed concern that the regulation of the company would ultimately cut jobs in the city and shut down the company.

The attorney for the taxi industry said the legislation is not meant to kill the ride sharing company's business, it is simply meant to establish a level playing field that does not yet exist.

The measure will move on to the Senate for further consideration.

The Associated Press contributed to this story.

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