The Colorado House of Representatives advanced legislation on Feb. 19 to cap the amount rideshare platforms can retain from each consumer fare at 20 percent.
The proposed measure, House Bill 26-1273, would limit transportation network companies from keeping more than one-fifth of a passenger’s payment for app-based rides in Colorado. The bill also restricts additional fees charged to drivers so that the combined total does not exceed the set limit, addressing fare distribution in app-based transportation services operating in Colorado, according to the official legislative summary.
The legislation would require rideshare platforms to give drivers a larger share of each fare. Opponents warn this would lead to significantly higher prices for riders and potentially reduced service across Colorado. The move comes as business leaders have raised concerns about regulatory burdens affecting economic activity in Colorado. Nearly 100 companies have left the state, expanded elsewhere or scrapped plans to relocate since 2019, resulting in a loss of more than 13,600 jobs during a period of net out-migration.
The move comes as business leaders have raised concerns about regulatory burdens affecting economic activity in Colorado. Nearly 100 companies have left the state, expanded elsewhere or scrapped plans to relocate since 2019, resulting in a loss of more than 13,600 jobs during a period of net out-migration. Business leaders have cited regulatory burden and economic conditions as key factors in relocation decisions according to data tracked by the Colorado Chamber of Commerce.
Similar regulations implemented elsewhere have led to notable market changes. Seattle saw average trip prices increase by more than 40 percent after initial Fare Share rules were enacted for driver and courier pay. Restaurant delivery orders fell by 30 percent following new ordinances, while rideshare volume recovery lagged behind national trends with trips remaining more than 50 percent below other major markets according to platform-reported data.
The Colorado House of Representatives is responsible for reviewing legislation related to revenue, labor and transportation policy through standing committees such as Business Affairs and Labor before moving bills forward for fiscal review. The chamber consists of 65 elected representatives who regularly address policy issues involving gig economy services as part of broader state economic regulation according to official information.
