Chicago City Wire

CALA-Illinois has issued the following press release:

A night out with friends is likely to become even more expensive after the Illinois General Assembly passed a bill that would likely drive up the cost to consumers for ride-shares like Lyft and Uber. The bill would treat ride-share companies as 'common carriers,' imposing upon them new liabilities if a rider is injured.

House Bill 2231 passed on the House floor this week on a mostly partisan vote with a 73-36 vote. Glenview Democrat Jennifer Gong-Gershowitz introduced the bill. "The reason for treating common carriers and holding common carriers to a higher standard of care is the lack of control that the rider has," said Gong-Gershowitz, a Democrat from Glenview. "There is no difference between the lack of control that a rider has the moment they step into an Uber or a Lyft and the lack of control that a rider has when they step into a taxicab or a train or an elevator."

Opponents of the bill argue that current rules already protect passengers. Clark Kaericher of the Illinois Chamber of Commerce says state law already requires Uber and Lyft to carry at least $1 million in insurance policies in case passengers are hurt or killed. Drivers are also required to carry their own liability insurance.

Phil Melin of Illinois Citizens Against Lawsuit Abuse says that this legislation will likely drive up the cost of using Lyft or Uber for consumers and could even drive these services out of the State. "Ride-share keeps millions of drunk drivers off the roads every year, and the unintended consequences of this legislation means that more people will risk taking to the roads when inebriated on alcohol or marijuana."

According to Crain's Chicago Business, the average fare for Uber in Chicago increased by 80 percent and by 73 percent for Lyft since 2019. Melin cautioned, "Illinoisans already struggling with out-of-control inflation should expect their ride-share cost to escalate even further because of this."

Follow the Money

Oasis Financial, a Rosemont-based financial services company that specialized in providing pre-settlement loans to plaintiff litigants, partnered with the Illinois Trial Lawyers Association to lobby for the bill, according to Linkedin.

Illinois Trial Lawyers Association PAC has reported making 10 donations totaling $15,000 to Gong-Gershowitz's campaign committee since 2018. Since 2010, the Trial Illinois Lawyers Association has contributed $6,738,950 to political committees and campaigns, the overwhelming majority of which are aligned with the Democratic Party. Oasis Financial has donated $18,000 to Democratic Party-aligned political action committees and candidates since 2010, with Friends of Michael Madigan as the largest single beneficiary.

Looking Ahead

The bill is now under consideration in the Illinois Senate with 12 Democratic Senators are co-sponsors, including Laura Fine of Glenview.