In further signs that ride services like Lyft and UberX are probably here to stay, the California Public Utilities Commission last week issued both companies three-year permits to operate in the state.
Lyft said in a blog post last week that it was "thrilled" to announce the issuance of the permit.
"This is exciting progress," the post said. "The CPUC’s framework serves as a sound example for other jurisdictions who are considering regulations for this new, peer-to-peer model. By supporting innovation and technology, these city and state leaders have the opportunity of paving the way for providing safe, affordable and sustainable transportation and we’re thrilled to be working with them to improve our cities of tomorrow."
An Uber post announcing its permit said, "The unprecedented growth in this industry and the leadership shown by California’s regulatory leaders sends a clear message. The innovation economy is thriving in California and the roadmap is simple: public safety and consumer choice go hand in hand."
Lyft and UberX had been operating conditionally as the CPUC reviewed their applications. Just last month, the commission sent letters to both companies informing them they needed to correct "deficiencies" in their applications within 60 days or have them denied. The CPUC specifically singled out questions about the companies' vehicle inspection programs. As reported by the San Francisco Chronicle:
The letter asked them to clarify
- Who is conducting the vehicle inspection?
- What qualifications do they possess to conduct the inspection?
- Any copies of contracts with outside vendors that may provide these services.
The CPUC also said that UberX must make its driver safety program mandatory, the Chronicle reported.