More transparency is coming for Colorado’s delivery and ride-hail drivers.
Gov. Jared Polis this week signed two bills into law that will mandate more extensive disclosures of ride details for drivers on platforms such as Uber, Lyft and DoorDash.
SB24-075, dubbed the Transportation Network Company Transparency bill, mandates ride-hail companies divulge how much of the ride’s cost will go to the company versus the driver. The bill also makes sure drivers know the destination and expected compensation for a ride before they accept it.
Lawmakers also sought to address driver deactivations, which advocates and drivers have said can be arbitrary and unexplained. Studies show immigrants and people of color are far more likely to be booted from their jobs.
The state, as part of this bill, will certify a “driver support organization,” which can help drivers dealing with deactivations.
Last year, the deactivation language prompted significant pushback from ride-hailing companies and sexual abuse advocacy organizations, who argued that the law could force companies to reinstate dangerous drivers. The 2023 bill would have created a state-run review board to oversee cases in which the companies booted drivers following complaints.
HB24-1129, titled the Protections for Delivery Network Company Drivers bill, seeks to cover similar issues on the delivery-driver side.
The law will prohibit delivery companies from decreasing the amount they pay a driver based on the consumer’s tip, and mandate companies pay drivers the entire tip amount.
Drivers will also see a new internal deactivation challenge procedure on their apps, which will help them get reconsideration meetings or administrative reviews.
The bill will give drivers at least a minute to decide whether they want to accept a delivery task.
“Delivery apps have made big promises to Coloradans, including flexibility for workers and more choices for consumers. But too often hidden algorithms interfere with the worker autonomy that drivers in this industry so highly value,” Rep. Stephanie Vigil, a Colorado Springs Democrat and bill sponsor, said in a statement. “This new law will improve transparency and fairness in Colorado law to provide drivers with the information they need and deserve to make free and informed decisions about their work.”
Unlike last session, lawmakers this year opted to split driver protections into two separate bills. Advocates and companies say the procedures facing delivery companies are not the same as ride-hailing platforms and should be legislated as such.
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