Uber is a technological company that provides online based transport taxi-alternatives in over 205 U.S cities and 60 countries worldwide. With the aim of providing global seamless transportation, Uber has spread its tentacles in all major cities in the U.S except Philadelphia. Well, until recently when the governor of Pennsylvania, Tom Wolf legalized ride-sharing across the entire commonwealth by signing Senate Bill 984. Now, Uber in Harrisburg and Philly can operate without fear of sanctions or bans.

Before the Ridesharing Bill

Uber in Harrisburg began the battle for Harrisburg quite a while ago. In 2014, the Pennsylvania Public Utility Commission voted to give Uber an experimental license for two years to operate throughout most of the state. Since then, Philadelphia remained out of reach for Uber. In May 2016, to indicate the level of its seriousness, Uber in Harrisburg launched a TV ad campaign in an effort to drum up support for the legislation that would allow its service to operate ‘everywhere’ in the state of Pennsylvania.

Specific Provisions of the Bill 984

To become an Uber driver in Harrisburg, the bill stipulates that drivers must have insurance; go through background checks alongside other safety measures and comply with ADA rules and other regulations pertaining to ride-sharing. However, the bill allows the Philadelphia Parking Authority to conduct its own inspections of Uber vehicles. It also lets the PPA conduct its follow-up check on drivers. All these are in addition to Uber’s own strict requirements for drivers. This bill follows through on most of the standards set for drivers by Uber and is congruent with the Uber business plan.

The bill also stipulates the PPA and Philadelphia School District will receive two thirds of all revenue from ridesharing. This means that Uber and other ridesharing firms will be required to give 1.4 percent of their gross receipts to the PPA. The PPA will then share two-thirds of the 1.4% with the school district. Philly reports that UberX and Lyft alone fetched the school district a total of $356,000 while the service was legal in the summer and early fall of 2016. This was just 1 percent of the companies’ gross receipts which was pegged at $53 million at the time. It is obvious from this data the school district could receive more than $1 million in a year.

The Senate voted 47-1 to pass Senate Bill 984, granting UberX and Lyft immediate permission to operate throughout Pennsylvania.

What this Means For Uber and Other Ridesharing Firms

Uber now operates in all Pennsylvania cities, which is a big relief for the ridesharing company. It remains to be seen, if the additional checks to be conducted by the PPA would be contested by Uber.

In the grand scheme of things, playing by the rules of the bill seems like a small sacrifice to pay for this phenomenal achievement.

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