A CDE Definition
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 as to how long it will take for the car to arrive.
Billing is automatically handled via pre-registered credit cards, and although tipping is enabled 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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