Uber, Lyft Would Be Heavily Regulated Under Plan Being Considered By City Of Madison

A Madison City Council subcommittee recommended implementing strict regulations on ridesharing companies like Uber and Lyft on Tuesday.

The proposed regulations would prohibit the companies from raising prices during demand spikes — a process called “surge pricing,” that has been a hot subject where rideshare companies are concerned. They would also require the companies to insure their vehicles for up to $1 million per accident and to have them operate 24 hours a day, seven days a week, starting in the second year of their license.

A spokesperson for Lyft said “the recommendations … would make it very difficult for Lyft’s peer-to-peer model to operate in Madison.” She added that the rules are an example of an “innovative, new model” being forced into “one-size-fits-all regulations.”

Mayor Paul Soglin, who drafted many of the proposals, doesn’t seem to care if Uber and Lyft aren’t pleased.

“If Uber and Lyft don’t want to participate, that is just fine,” he said. “We are going to have modern, well-equipped vehicles with drivers that the public can trust. We’ll be OK.”

Phil Anderson, general manager of Green Cab of Madison, said that ridesharing companies will likely continue to operate illegally even if the City Council approves the regulations. He said that companies, like Uber, will probably pursue state-level regulations.

“What we’re afraid of, and what we think will likely happen, is that once they’ve lost the battle here at the City of Madison, that they will go to the state government and try and get something passed there that overrules whatever the city passes,” said Anderson.

There will be more meetings about the proposed regulations before they go to the full city council for approval. Mayor Soglin said he hopes they’ll be approved by spring.