Transportation Network Companies
Colorado was the first state in the country to create state-level regulations for Transportation Network Companies (TNCs), which occurred in 2014. The PUC is the primary regulator for TNCs operating in Colorado and ensures TNCs are properly licensed and insured. The PUC also regulates various operational standards for TNCs, including driver and rider safety, consumer protection, and other important criteria.
Rates
The PUC has no authority to set rates for TNCs. Charges for rides provided through TNCs are set by the TNC using a formula that is controlled by the TNC. The formula can change at any time. Most likely, the passenger will be charged based upon the distance traveled and the time it took to travel that distance.
TNCs also adjust the cost of the fare based upon supply and demand. One company calls this “surge pricing.” For example, fares can increase significantly on holidays, late at night, or depending on weather conditions. TNCs reserve the right to adjust the fare at any time. Usually, the TNC will provide notice when this “surge” occurs, but it is not a requirement.
Some TNCs will, by default, automatically add a percentage of the fare to the final bill for a gratuity. However, it is dependent upon the policies of each TNC regarding how tips may or may not be added, or even requested.
Operational Requirements of TNCs
- A TNC driver may not solicit or accept the on-demand summoning of a ride, also known as a “street hail.” Rides must be arranged through the digital network.
- A TNC must make available to prospective riders and drivers the method by which it calculates fares or the applicable rates being charged, and an option to receive an estimated fare.
- Upon completion of a prearranged ride, a TNC shall transmit to the rider an electronic receipt, documenting the origin and destination of the ride, the total duration and distance of the prearranged ride, the total fare paid, including the base fare and any additional charges incurred, and the driver’s first name and telephone number.
- Additional consumer transparency requirements were recently added, pursuant to Senate Bill 24-075. The new standards outlined in this bill are being administered by the Colorado Department of Labor and Employment (CDLE).
- There are certain "refusal of service" requirements for TNC drivers, meaning a TNC driver cannot refuse service in most situations.
It's the Law
State law and PUC rules require passenger transportation providers, including taxis, shuttles, and Transportation Network Companies (TNCs), such as Uber and Lyft, to allow service animals to accompany passengers. Discrimination against a person with a service animal is illegal.
If you witness or are a victim of such circumstances please contact the PUC online, via our complaint form, or call the Consumer Affairs hotline, at (303) 894-2070.
