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Monday, November 4, 2024

Springfield bill to make rideshare more expensive

Melin

Phil Melin, executive director of CALA-Illinois. | Submitted

Phil Melin, executive director of CALA-Illinois. | Submitted

Do you like paying higher prices for ridesharing services? No? Well apparently, Springfield's position is, "too bad, pay up."

The Illinois General Assembly passed a bill introduced by State Representative Jennifer Gong-Gershowitz to classify popular rideshare providers like Uber as common carriers. While that sounds like an obscure bit of regulatory jargon, it could actually have a massive impact on how much we pay for ridesharing services. And in some cases, whether we have access to services at all.

And if you're on team "lower prices" like me, you won't like the impact this bill will have on your wallet.

This would subject rideshare companies to a slew of new and costly regulations. The increased cost would likely be passed onto the customer through higher trip fares, making the services less affordable for many users. It would also likely result in fewer or no services for lower income communities.

The end result would be longer wait times and higher bills for those with access to services. But for many, the bill would cut off availability altogether.

This change would devastate tens of thousands of drivers who would lose access to the platform and the communities who lose economic revenue.

Perhaps the most frustrating part of this bill is its almost exclusively an Illinois problem.

Currently, no state laws in the United States consider rideshare providers to be common carriers. In fact, 29 states explicitly state that they are not common carriers, while 20 states are silent on the issue. In the few states where the law is silent, courts have consistently held that Uber is not a common carrier.

Representative Jennifer Gong-Gershowitz's bill makes transportation more expansive for all of us. It is misguided and out of step with the rest of the nation. The representative should focus on policies prioritizing safety and affordability for Illinois residents.

Phil Melin is the executive director of CALA-Illinois.

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