The Colorado General Assembly has introduced House Bill 26-1273, which would prohibit transportation network companies from keeping more than 20 percent of the fares paid by riders for trips. The measure could lead to substantial increases in rideshare and delivery costs, according to the legislative summary.
House Bill 26-1273 establishes that transportation network companies may not retain more than 20 percent of the amount consumers pay for rides or deliveries, excluding tips and tolls. The bill also bars companies from imposing fees on drivers if the total exceeds that 20 percent threshold. Sponsors include Representatives Jenny Willford and Meg Froelich along with Senators Lisa Cutter and Katie Wallace, and the legislation remains under consideration in committee as of the current date according to the official bill text.
Similar regulations in other cities have led to increased costs for consumers and changes in driver earnings. In Seattle, the PayUp ordinance mandated minimum compensation for delivery couriers at $26.40 per hour before tips, resulting in platforms adding $5 fees per order. Order volumes fell 30 percent, and couriers experienced 30 percent more wait time between requests with earnings staying flat or declining slightly. According to Uber’s analysis, these changes reduced work opportunities for couriers and hurt local businesses through lost revenue.
In New York City, a minimum pay law guaranteeing $21.44 per hour prompted apps like Uber Eats and DoorDash to shift tipping options post-checkout, causing average tips to drop from $3.66 to 76 cents per delivery. This shift led to workers losing up to $550 million in tips as companies passed higher costs to consumers via fees. A city report said that such regulations increased base pay but reduced overall earnings due to fewer orders and lower gratuities according to Streetsblog NYC.
The Colorado General Assembly serves as the bicameral legislature for the state, comprising a 65-member House of Representatives and a 35-member Senate. It meets annually in Denver to enact statutes on matters including economic regulation and labor standards. According to its official website, the body operates under the state constitution to address policy issues affecting residents and industries.
