State raises insurance minimums, Uber & Lyft cry foul

Last minute ride-sharing amendment has new tech companies hopping mad

State raises insurance minimums, Uber & Lyft cry foul

Motor & Fleet

By Allie Sanchez

If Assemblyman Richard Carillo has his way, Nevada will have an elaborate, multi-million dollar system for policing ridesharing companies, which these companies say will stifle their business model.

A major amendment to Senate Bill 226 passed without much concern late Friday and was heard in the Ways and Means committee Monday morning to determine where the state will get the $3.5 million needed to get the machinery running.

Uber and Lyft are not happy with the eleventh hour addition.

Argentum Partners lobbyist Molly Ellery was said to have told reporters that the amendment was approved with “no discussion, committee hearing or public debate.”

“If passed, this amendment would give taxicabs a monopoly over Nevada’s transportation and would drive out innovative business and economic growth and ultimately, end ride-sharing in the state,” The Nevada Independent quoted her as saying.

The provisions in the amendment include requiring ride-sharing drivers to obtain a permit from the Nevada Transportation Authority  after going through a background check and meeting requirements sought from traditional cab drivers.

It also raises minimum insurance coverage from the current $50,000 to $300,000 for property damage, injuries or deaths of individuals involved in accidents with ridesharing drivers.

This provision, according to Ellery, will make Nevada’s ridesharing insurance the highest in the country and is significantly higher than what Uber currently offers for passenger trips.

The Independent reports that in March, a union for Las Vegas taxi drivers asked legislators to further place restrictions on the operations of such services to avoid what they consider “unfair competition.”


Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!