A Colorado proposal that would limit how much transportation network companies can retain from each fare is moving through the legislature, raising concerns that it could affect ride availability and pricing in the state’s app-based transportation market.
The legislation aims to address concerns about how much rideshare platforms keep from fares paid by consumers. Supporters say the measure could impact driver earnings and consumer costs in the state’s growing app-based transportation sector.
HB26-1273, titled Transportation Network Company Maximum Percent Fare Retention, was introduced on February 19 and assigned to the House Business Affairs and Labor Committee. On March 11, the committee adopted amendment L.003 without objection and voted seven to six to refer the bill as amended to the appropriations committee, where it remains under consideration. The legislation defines consumer fare as the amount a consumer pays for a transportation task, excluding tips and pass-through costs such as tolls, according to legislative records.
Similar policies have been implemented elsewhere. Seattle enacted a minimum pay requirement for gig delivery and rideshare workers that raised base compensation per delivery from about five dollars to more than twelve dollars. However, total monthly earnings for many drivers showed little net change after the policy took effect. The higher mandated payments were offset by drivers completing twenty to thirty percent fewer deliveries each month, even though they spent the same amount of time logged in, as platforms faced increased competition from new entrants to the market according to Fortune.
Following Seattle’s gig worker pay rules, platforms adjusted operations, which led to wait times between tasks doubling to around five minutes and customers receiving added regulatory response fees that reduced tipping behavior. Uber Eats removed tipping options at checkout in the city, while DoorDash added fees to orders, resulting in lower tips that offset more than one-third of the base pay increase. Overall order volume declined as customer prices rose and existing drivers reported longer unpaid cruising periods to restaurant pickup areas according to Fortune.
The Colorado General Assembly serves as the state legislature responsible for considering and enacting laws on transportation, workforce, and economic issues, including regulations affecting app-based services. It consists of the House of Representatives and the Senate and convenes annually in Denver to review bills that impact business drivers and consumers across the state. The body handles measures such as HB26-1273 through its committee process to evaluate effects on the rideshare industry according to official information.
