Colorado legislature proposes 20% cap on rideshare and delivery fare retention

Meg Froelich, Colorado State Representative
Meg Froelich, Colorado State Representative
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The Colorado General Assembly introduced House Bill 26-1273, a measure that would bar transportation network companies from keeping more than 20% of the amount a customer pays for rideshare or delivery trips. It would also place limits on extra charges so that the combined total still remains within that cap.

The bill is designed to control how much app-based platforms are allowed to take from each transaction, with tips excluded from the fare calculation. Backers of the proposal say the goal is to curb company fee practices and could leave drivers with a larger share of each fare by restricting how much the companies can retain.

House Bill 26-1273 was introduced on February 19, 2026, by Representatives Jenny Willford and Meg Froelich, along with Senators Lisa Cutter and Katie Wallace. The legislation targets digital platforms for rideshare and delivery services, excluding tips from the fare calculation. It also restricts companies from charging additional fees that would push the total retained above the 20% cap, according to the Colorado General Assembly.

Similar regulations in other cities have produced mixed results. In Seattle, a delivery minimum wage law set above $26 per hour caused Grubhub drivers to wait 110 minutes longer for delivery opportunities, a 578% increase. Average earnings per online hour fell 36%, with tips dropping amid higher service fees. Regional data shows that such regulations reduced order volumes and made delivery services less affordable for consumers in the Pacific Northwest, according to Grubhub.

In Minneapolis, a similar minimum pay standard for rideshare drivers prompted Uber and Lyft to warn they might leave the market, citing an inability to cover costs without major fare increases. National studies indicate that gig wage floors can lead to 15–30% price increases for consumers. Across the U.S., such policies have often decreased driver hours while raising delivery costs, according to the Associated Press.

Established in 1876 under the state constitution, the Colorado General Assembly consists of a Senate and House of Representatives. It transitioned to annual meetings in 1950 and enacts statutes codified in the Colorado Revised Statutes. The legislature represents 100 members focused on state governance, according to the Colorado General Assembly.



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