Uber, Lyft and other ride-sharing corporations will not require to carry industrial license plates after the California Division of Motor Vehicles revoked the requirement. The DMV stated that there was uncertainty about the effect of law described in the memo and recent regulatory and statutory adjustments affecting ride share operators.
The new rule could have become an obstacle for the ride-sharing companies plans to bring in new drivers, a majority of whom visit Joes and Janes that have autos with standard plates. The procedure for acquiring an industrial license plate is cumbersome and expensive after California issued new ride-sharing regulations in 2013. The guidelines also made it compulsory for drivers using companies apps to use their private cars.
“We jumped the gun, we shouldn’t have,” said the DMV in a statement.
The department mentioned that the matter calls for further evaluation and critique. Earlier, the agency issued a memo stating that any passenger automobile utilized or maintained for the transportation of persons for hire, compensation, or profit is an industrial mobile. The memo even required occasional users to register their vehicles commercially.
On Friday, a DMV spokesperson addressed transport network companies (TNC’s) like Uber and Lyft which hire drivers with own cars and are registered as private cars. Analysts had predicted that the law could have organization implications including changes in commercial insurance and a game-changer for the ride share sector.
According to rules and state laws issued by the California Public Utilities Commission in 2013, TNC drivers are required to drive their own private autos but do not need any specific type of registration. Rideshare group representatives also stated that they did not believe that commercial plates should be expected for aspect of time and occasional ride-sharing drivers. Uber, Lyft who were against the industrial plate requirement declined to comment on Saturday.