The California Division of Motor Vehicles has reconsidered its decision and revoked the requirement for industrial license plates for corporations like Uber, Lyft. This new press release came on Saturday at 12:01 AM after immense outrage from both ride-share companies and their supporters. It’s during this press release that the DMV announced that Uber, Lyft Drivers Don’t Need Industrial License Plates.
Jean Shiomoto, the director of the Division of Motor Vehicles, stated that a decision had been made hastily and that further review is required. He added that the department will undertake the necessary steps immediately, but noted that uncertainty remains regarding the requirement for commercial license-plates as mandated by new, statewide ride-sharing regulations.
Allegedly, the DMV will now schedule meetings with various ride-sharing company representatives as well as regulators in an attempt to reach a consensus. Yet many ride-for-hire businesses, Lyft and Uber included , insist that the state’s Public Utilities Commission already agreed that their transportation network is distinct from other transport companies, as are taxicabs.
According to California law, vehicles requiring commercial plates are not mandated to carry commercial insurance. However, if Uber of Lyft drivers will be compelled to obtain commercial auto insurance, an increase in costs is almost certain, Nancy Kinkaid, spokeswoman for the state’s Department of Insurance said. Ride share companies are required by law to provide a minimum of $200,000 insurance for on-duty drivers and at least $1 million of coverage if customers are picked up by drivers.
“It is disappointing that the DMV cites a nearly 80-year-old law in its recent ridesharing advisory, throwing more tacks on the road to deflate this emerging industry,”
Mike Montgomery, CALInnovates executive director states.
According to statements made by Lyft, mandating company drivers to obtain the plates would essentially turn peer-to-peer transportation into a form of cab-driving. Yet this way of getting around, Lyft notes, increases the sustainability of a city.
In effect, Montgomery added, what the DMV should be doing is to provide noteworthy examples of legislature affirming that drivers may use personal vehicles for ridesharing purposes.
Image Source: Consumerist