Gov. Nikki Haley signed legislation last week that regulates Uber and similar companies operating in South Carolina.
The S.C. Public Service Commission in January issued Uber a cease-and-desist order. After strong backlash from the governor and legislators, the PSC then reversed its decision two weeks later and granted Uber a temporary license that was set to expire on June 30.
The company’s fate in the state was unclear after the General Assembly ended session at the beginning of June without coming to an agreement on how to regulate the company.
However, during special session, legislators agreed to classify Uber and other ride-sharing services as transportation network companies – businesses that use a digital network to connect passengers with drivers.
“Uber’s expansion into our state is a win for innovation, the competitive business environment we have fought so hard to create, and it means our citizens will continue to have safe reliable transportation options,” Haley’s spokeswoman Chaney Adams said in a statement.
Much of the discussion in allowing Uber to operate in the state centered on how drivers should be insured.
While not engaged in a prearranged ride, the driver is required to have liability insurance of at least $50,000 for death and bodily injury per person, at least $100,000 for death and bodily injury per incident and at least $50,000 for property damage.
While engaged in a ride, the driver is required to have liability insurance that provides at least $1 million for death, bodily injury and property damage.
Uber representatives supported the legislation’s passing, according to the Post and Courier, which published a statement from Michael Black, South Carolina general manager for Uber, calling the new law “a victory for riders and drivers.”
