The Colorado General Assembly announced House Bill 26-1273, which would limit transportation network companies to retaining no more than 20% of consumer fares for rideshare and delivery services.
The proposed legislation aims to address concerns about how much digital platform companies keep from each transaction, as well as potential impacts on drivers’ earnings and consumer costs. Lawmakers say the bill is intended to create a fairer environment for both workers and customers using these services.
House Bill 26-1273 was introduced by Representatives Jenny Willford and Meg Froelich, along with Senators Lisa Cutter and Katie Wallace. The legislation would limit transportation network companies to retaining no more than 20% of consumer fares for rideshare and delivery services. It also restricts charging drivers additional fees that, combined with the company’s portion of fares, would exceed the 20% cap. The bill applies to tasks completed through digital platforms, according to the Colorado General Assembly.
Similar regulations in other cities have produced mixed results. In Seattle, the PayUp ordinance mandated a minimum pay of more than $26 per hour for delivery drivers, leading to a 30% drop in order volume, according to Uber Eats. DoorDash reported a loss of 30,000 orders in the first weeks, with businesses losing over $1 million in revenue. The changes also resulted in higher consumer fees and reduced affordability for rideshare and delivery services in the region, according to Uber Eats.
New York City’s minimum wage for app-based delivery workers increased to $17.96 per hour, prompting platforms to shift to scheduled shifts and raise food prices by roughly 10%. Reports indicate the move reduced job opportunities for drivers while passing higher costs to consumers nationwide. Similar policies in other U.S. cities have shown comparable increases in delivery fees, affecting gig economy affordability, according to reports.
The Colorado General Assembly serves as the state’s bicameral legislature, with 35 senators and 65 representatives elected by citizens. It was established by the 1876 state constitution and began annual sessions in 1950 after previously meeting biennially. The body handles lawmaking for Colorado, including regulations on transportation and labor, according to its official overview.
