Senate’s Regulations Get Support of Uber and Lyft Competitor

More than two dozen states have passed laws related to Uber, Lyft, and other competitors since 2014. The Senate bill more closely fits that description, and has the companies’ support, while the House version includes tighter state oversight and has invited opposition. The state Senate plans to unveil a new bill Thursday that would govern smartphone-enabled ride-for-hire services like Uber and Lyft.

The new background check would require the companies to provide driver information to the state. The state would then run a secondary background check, essentially double-checking the investigation already done by the companies.

uber-and-lyft-side-by-side

Uber has said that the House’s proposed process would affect its business model because the added requirement to the hiring process might deter drivers from joining the service.

 

Fasten, a company based closer to home, seems to have a relaxed approach. Kirill Evdakov, Fasten’s CEO said, “I don’t think there is anything crazy about the proposed law and nothing to really worry about,”

 

While Evdakov’s perspective contrasts with that of Uber and Lyft, the bill has got support of two more similar companies which accepted the bill passed by the Senate last month that would oversee the industry.  However, they have rallied against provisions of a House proposal passed in March. The differences between the bills mean the fight is not over. The two versions will need to be ironed out between the chambers to create a final bill in the next month, before the legislative session runs up at the end of July.

 

It is quite evident that the company with relaxed perspective has to support the bill as it does not have any other option to go for.

 

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Since fasten does not have as big a contribution in market as Uber and Lyft, it won’t be able to leave a major impact on the market by shutting down its service. While the stance is similar to what Uber and Lyft did in cities that pass regulations they do not approve of, Fasten’s action certainly will not carry much weight, according to Evdakov.

 

After the protest of Uber and Lyft over the law under which drivers had to undergo fingerprint-based background checks, Fasten took over Austin this year. Due to this, Fasten is willing to follow whatever regulations may occur. The strategy of taking the place of these two major companies force fastens to submit to the rules, Evdakov said.

 

Senators did not adopt an amendment that would have required drivers for the digital-age transportation companies to fingerprint drivers — a measure that has driven Uber and Lyft out of other markets. The companies argue the checks are both too burdensome for drivers and unnecessary because the companies already conduct third-party background checks.

 

On the other hand Evdakov seem to be fine with this law as he said: “Fingerprinting itself is not a big deal, it’s not what will cause us to stop,”.

 

Unlike Uber and Lyft, Evdakov is not very active at the state House and therefore he has not been able to meet the lawamakers. But he later recalled that he had met with House officials last winter.

 

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