TNC Company


Written By: Ehsan Jahandarpour

A transportation network company (TNC) is a company that uses an online-enabled platform to connect passengers with drivers using their personal, non-commercial, vehicles. This has also been called real-time ridesharing but is different from traditional ridesharing in that it does not require the sharing of a vehicle by multiple riders to reduce vehicle trips, traffic congestion, and automobile emissions. Examples include Lyft, Uber X, Sidecar, Wingz, Summon, and Haxi. The definition of a TNC was created by the California Public Utilities Commission in 2013, as a result of a rulemaking process around new and previously unregulated forms of transportation. Prior to the definition, the commission had attempted to group TNC services in the same category as limousines. Ride-Sharing Startups Get California Cease-And-Desist Letters – Forbes Taxi industry groups opposed the creation of the new category, arguing that TNCs are taking away their business as illegal taxicab operations.In California, They’re Not Taxis, They’re “Transportation Network Companies” – WNYC The commission established regulations for TNC services at the same time as the definition. These included driver background checks, driver training, drug and alcohol policies, minimum insurance coverage of $1 million, and company licensing through the Public Utilities Commission.California PUC Proposes Legalizing Ride-Sharing From Startups Lyft, SideCar, Uber – Forbes