Shared-bikes Industry is threatened by a new challenge – AB 1286

Bike sharing and scooters are getting popular

California and bills go hand in hand. There’s hardly any time when legislation from California hasn’t created controversy. This time it’s a bill that has ride-sharing and e scooter companies worried about their very existence.

The companies that are involved in the micro-mobility industry – that’s e scooter, shared bike companies, have started to oppose a bill that’s threatening to their business. 

AB 1286 is a bill that is going to stop companies from including clauses in their agreement of service that waive liability for injuries that happened to users. Companies claim that this provision would force the business down if enacted across the state. 

The bill was introduced in February 2019. However, it got a vote in the Senate. 

“This bill would require a shared mobility service provider, as defined, to enter into an agreement with, or obtain a permit from, the city or county with jurisdiction over the area of use. The bill would require that the provider maintain a specified amount of commercial general liability insurance and would prohibit the provider from including specified provisions in a user agreement before distributing a shared mobility device within that jurisdiction. The bill would define shared mobility devices to mean an electrically motorized board, motorized scooter, electric bicycle, bicycle, or other similar personal transportation device, except as provided.”


Official website of California Legislative Information

The real reason behind the outrage against this bill from industry is because the law makes them vulnerable to lawsuits from users(the riders) who get injured during their scooter and bike rides. The issue is that these lawsuits include those filed by riders who get injured due to their negligence, reckless riding through traffic, and poor road conditions. 

The same protection from liability from accidents or injuries is standard for other industries such as transportation rental companies, resorts, skydiving business, water rafting and many other recreational businesses where the risk of physical harm is involved. If the protection of waiving the liability is taken from, they will be out of business without any delay. 

Although the bill is yet to be passed across the country and if it ever gets to that point, it will catch protest from the businesses. What do you think about this bill? Is it alright to pass this bill? Comment down to let us know. 

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