The Colorado General Assembly announced on Feb. 19 that it has introduced House Bill 26-1273, which would prohibit transportation network companies from retaining more than 20% of a consumer fare for rideshare services. The legislation also restricts additional fees charged to drivers and has advanced through the House Business Affairs and Labor committee before being referred to Appropriations.
The proposed measure aims to address how digital platforms distribute payments received for completed rides, according to the official legislative summary and bill text. Supporters say the bill is intended to ensure fairer compensation for drivers while regulating the share of fares retained by app-based transportation companies.Â
Rideshare companies operating in Colorado have warned that the proposed 20% retention cap would not cover their existing operational expenses, which already include insurance premiums, taxes, fees, background checks, and safety systems. Opponents of the bill, including industry representatives, project that compliance would force platforms to raise average rider fares significantly to maintain service levels across the state. This comes as Colorado families increasingly rely on rideshare and delivery options for everyday transportation amid broader affordability pressures. Reports from company statements indicate the legislation could double typical ride costs for users in areas like Denver and surrounding communities, as reported by KDVR.
Similar regulations in Seattle, known as the Fare Share and PayUp ordinances for app-based rideshare and delivery workers, resulted in rider fares increasing by an average of 40%, with some trips rising 50 to 60%. Delivery orders declined by approximately 25 to 30% while drivers experienced longer wait times between requests and reduced overall earnings per hour logged into the app. Restaurants and small businesses in the area also reported lower revenue as customers faced higher fees and reduced convenience. The policies made Seattle the most expensive major city in the country for rideshare services, according to independent analyses cited by Uber Under The Hood.
The Colorado General Assembly is responsible for enacting laws governing transportation standards statewide through its bicameral structure consisting of both a House of Representatives and Senate committees dedicated to business affairs and appropriations reviews.
