Uber, Lyft now pay fee to taxi companies

State will now conduct background checks & car inspections on all ride-hailing services

SPRINGFIELD, Mass. (WWLP) – Governor Baker signed a new law Friday setting tougher regulations for ride-sharing services. The good news is that these regulations make riders feel safer, but it may cut into Uber and Lyft’s profits because they won’t keep all of the money they make.

Your Uber driver and the car you ride in will now be checked by the state. Uber and Lyft currently inspect their own cars, and do the background checks on their drivers.

Governor Baker signed a new Law Friday that has the state Dept. of Public Utilities regulating these services, and impose strong state background checks. The new law also requires Uber and Lyft services to pay $0.20 of each of their rides to go towards taxi drivers who have been hurt by the new technology, something many people told 22News is an unfair responsibility for a successful business.

“I don’t think it’s fair because they’re not providing any services,” says Stacy Shannon of West Springfield. “The Uber and Lyft drivers are, but not the taxis.”

Karen of West Springfield says it’s the taxi’s responsibility to perform better “Taxi companies have the ability to step up to the plate and turn their business around and earn the money that they’re looking for.”

More than 30 other states have similar regulations for ride-hailing companies. The new law gives Uber and Lyft 1 year to apply these regulations.

“Uber is better,” says Kaylee of Easthampton, “so more people like to use Uber instead of the taxi service. They should try and make themselves better, so more people choose them instead of Uber.

Uber and Lyft have both issued statements supporting this new law.

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