A CDE Definition
See transportation network company.
transportation network company
An organization such as Uber and Lyft that uses mobile apps to enable people to secure individual and carpooling rides from drivers in non-commercial vehicles. The GPS capability in the smartphone identifies the pick-up location and keeps the customer informed of how long it will take for the car to arrive.
Billing is automatically handled via pre-registered credit cards, and although tipping is also provided in the app, nothing prevents the passenger from handing the driver a cash tip. Initially treated as contractors, drivers became classified as employees in Britain. The transportation companies are increasingly challenged by jurisdictions to change driver status to employee.
Also called a "ridehailing" or "ridesharing" service, in 2013, the California Public Utilities Commission created the transportation network company category to deal with these services. See Uber and Lyft.
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