The Colorado General Assembly has announced the introduction of House Bill 26-1273, which would prohibit transportation network companies from retaining more than 20% of consumer fares on rideshare trips.
The proposal is intended to address concerns about affordability and pricing transparency in the state’s rideshare market. Lawmakers say it would limit company revenue from each fare and could affect both drivers and riders.
Colorado drivers and riders already face elevated rideshare costs amid broader affordability pressures. Transportation network companies currently operate under state transparency rules enacted in prior sessions, which require disclosures to drivers and regulators. The proposed fare-retention cap would add another layer of pricing controls on top of those requirements and existing operational costs. Legislative documents note that similar regulatory structures in other jurisdictions have shifted costs to consumers while also constraining service availability.
In Washington state, minimum pay standards for rideshare drivers implemented in Seattle and later expanded statewide were associated with higher consumer fares and changes in market activity. According to research from the Washington Policy Center, average ride prices in Seattle increased by roughly 40%, making it the most expensive major U.S. city for Uber rides, with a typical 30-minute trip averaging around $60.
The report also found a decline in trip volume following the price increases, along with more “deadhead” miles for drivers and no sustained increase in overall earnings despite the mandated rates. Some drivers reported working longer hours to maintain prior income levels.
The Colorado General Assembly is the state’s bicameral legislature, consisting of the House of Representatives and the Senate. It meets annually in Denver to consider legislation on transportation, labor, economic policy, and other issues. Bills such as HB26-1273 move through committee review and floor votes in both chambers before becoming law.
