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Senate Panel Blocks Bill Targeting Ride-Hailing App Pricing

janitors / Flickr
 

janitors / Flickr

(AP) - A California Senate panel is blocking legislation aimed at preventing ride-sharing services Uber and Lyft from adjusting their prices based on demand, a practice known as "surge pricing."

The measure fell one vote short in the Senate Transportation and Housing Committee on Tuesday.

SB1035 would have allowed the California Public Utilities Commission to regulate ride-sharing fares and operations, a shot at the companies' model of raising prices when demand is high.

It also would have sought stricter background checks for drivers.

The bill has drawn fierce opposition from technology leaders who warn it would dismantle the industry.

It was written by Democratic Sen. Ben Hueso of San Diego, whose family has longstanding ties to the taxi industry. He says it would impose a minimal protection for customers and drivers.