In the New York Post today, Nicholas Vega, reports on a new press from the Los Angeles Mayor aimed at ride-share services. Considering the economics, in the short-term, service may suffer for those looking for a ride due to the amount of providers driving non-electric cars that would not be in the drivers pool. However, there might be a rise in electric car purchases for those that want to stay in the game. Here’s the report:
Uber may be on the brink of another clash with California lawmakers.
Los Angeles Mayor Eric Garcetti on Friday said that he was considering instituting a requirement that would force ride-share services to use electric vehicles.
“We have the power to regulate car share,” Garcetti told the Financial Times. “We can mandate, and are looking closely at mandating, that any of those vehicles in the future be electric.”
The measure would be a part of LA’s effort to slash its greenhouse gas emissions and reach carbon neutral status by 2050.
If the requirement was implemented, it would be a major blow to Uber in one of its top five largest markets. Uber was already hit by a major setback in the Golden State when lawmakers passed legislation that classified drivers like employees instead of contractors — making them eligible for minimum wage and paid time off.
Last month, the ride-hail giant was also stripped of its license to operate in London — which represented close to 4 percent of its business — over its failure to ensure passenger safety.
“I think there’s going to be more asks like this from cities and states, especially when it comes to California, which has two of its top five cities worldwide,” Wedbush analyst Dan Ives told The Post, referring to Los Angeles and San Francisco.
“It speaks to a trend that the regulatory environment and Uber’s relationships with cities and states are starting to get uncomfortably complex,” he added.
A spokesperson for Uber did not respond to The Post’s request for comment.
- Nicholas Vega