they don't appear to follow any of the normal rules for taxis or car services. In fact,

they don't even have to register as a car service. So, what's going on? Are Uber and

Lyft even legal? Technically, Yes. They are legal. Primarily,

because they're not really car services, they're social networking services. All they do is

connect people who want rides with people who offer rides.

I'm sure they'd hate this analogy, but think of them as a huge phone book with all of the

possible drivers listed by proximity to you. Like with the phone book, it's on the people

looking for rides to choose which drivers they want, and it's up to the drivers to operate

their business within the law. That last part is actually tougher than you'd

think, and it's where all of Uber's and Lyft's legal issues are currently stemming from.

Ride-sharing services can't guarantee that their drivers are operating within the law,

because those drivers are independent contractors. BUT, if they want to stay open they still

need drivers that comply with the laws, so they have been taking steps in that direction.

To be a driver, you need to have a background check and at least a million dollars in insurance

coverage. And that applies to almost every passenger-carrying car in any city. But that's

where Uber and Lyft stop. In most cities you need MORE than just those two requirements.

In Pittsburg, for example, you also need a Certificate Of Public Convenience. Most rideshare

drivers don't have that, and as a result - Pittsburgh issued a cease and desist order on both Uber

and Lyft, just before this past fourth of July. Technically, they stated public safety

concerns, but it was really about non-compliance. Uber and Lyft are also trying to operate in

cities with laws that regulate and benefit taxi companies. Cabbies in London, for example,

sued Uber, because only certified cabbies in that city are allowed to have metering

systems inside their cars.

Uber fired back, claiming that they don't use a metering system, and the technology

they do use, isn't even based inside of the car. It's a complicated array of GPS and cell

phone technology. And because of that, the London courts ruled on behalf of Uber. These

are the sorts of minor obstacles Uber has to overcome, and it's the reason they keep

popping all over the news. So, that's the general run down. Uber and

Lyft are legal, but their drivers may not be - and it's up to each individual city to

either adjust, shut ride-sharing down, or enable their drivers to comply. It's gonna

be an ongoing issue, and it's definitely worth keeping an eye on.

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