The Colorado General Assembly announced it has advanced House Bill 26-1273, which would limit transportation network companies to keeping no more than 20% of consumer fares for rideshare and delivery services while restricting additional fees that could exceed the cap.
The proposed legislation aims to regulate how much companies such as rideshare and delivery platforms can retain from each transaction. Supporters say the measure is intended to ensure drivers receive a larger share of fares and prevent companies from imposing extra charges that would surpass the set limit.
House Bill 26-1273, filed February 19, 2026, by Democratic sponsors, applies to transportation tasks completed through apps and excludes tips from fare calculations. The measure bars companies from charging additional fees that would push total retention above the 20% limit and applies to all platforms operating in Colorado, according to the official bill summary.
Similar regulations in other cities have produced mixed results. In Seattle, the PayUp ordinance led to a 25% drop in delivery orders and a 28% decline in driver earnings per app hour, while restaurants also experienced revenue losses from fewer deliveries, according to a Flex Association study. Such local regulations increased consumer fees and reduced rideshare affordability in the region.
New York’s wage increase for gig delivery drivers to nearly $18 per hour doubled base pay but cut tips and reduced available tasks, resulting in no net earnings gain. Similar policies in other cities, including Toronto, have raised consumer costs by up to 31%, with U.S.-wide data showing fewer gig work opportunities and higher prices for delivery services according to a National Bureau of Economic Research analysis.
The Colorado General Assembly is Colorado’s bicameral lawmaking body. It includes 35 senators and 65 House members. Formed by the 1876 constitution, it shifted from biennial to yearly sessions in 1950. It publishes session laws and oversees state policies according to Ballotpedia.
