Two U.S. senators have introduced a bill that would mandate ride-hailing companies like Uber Technologies Inc. UBER and Lyft Inc. LYFT to inform passengers if their drivers are using dashcams to record them.
What Happened: The bill, proposed by Sen. Marsha Blackburn (R-TN) and Sen. Peter Welch (D-VT), would require ride-hailing companies to give passengers the option to switch drivers if they are uncomfortable with being recorded, reported Bloomberg.
Uber and Lyft drivers have increasingly been using dashcams to document incidents such as carjackings, assaults, and robberies. While this move was intended to make the service safer and disputes easier to resolve, it has raised privacy concerns.
The bill will need to pass through a U.S. Senate committee before it can be voted on by the full Senate. The likelihood of it being passed remains uncertain. If enacted, this legislation would be the first federal attempt to regulate the use of dashcams by ride-hailing companies.
Uber and Lyft currently do not require drivers to register their dashcams on their respective apps. However, Uber’s website states that recordings may be used as evidence by the company, law enforcement, and insurance firms in the event of an incident during a ride.
Why It Matters: This move comes at a time when Uber has been making efforts to enhance safety features for its passengers, particularly women. In April, the company introduced safety preferences to make it easier to maximize in-app safety features, especially at night. This was in response to rising concerns about passenger safety.
Despite these efforts, the company has been facing challenges related to safety. In March, Uber CEO Dara Khosrowshahi outlined his vision for the company’s future at South by Southwest in Austin, Texas. He emphasized the company’s desire to expand its user base beyond the middle and upper classes by promoting shared rides among passengers to lower costs. However, recent safety concerns have cast doubts on the viability of this initiative.
Price Action: LYFT Inc’s stock closed at $14.48 on Thursday, down 6.82% for the day, with after-hours trading at $14.54, up 0.42%. Year to date, LYFT’s stock has gained 4.93%. Meanwhile, Uber Technologies’s stock closed at $70.86 on the same day, with a 3.13% decrease. Year to date, Uber’s stock has risen by 21.38%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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