Uber and Lyft have gotten a reprieve in Maryland after coming close to a potentially service-ending battle with the state's Public Service Commission over background checks.
The PSC had been discussing making ride-hailing apps use the FBI's fingerprinting background check system, which Uber threatened would mean the end of its service in the state. That wasn't an idle threat since it was that same rule that led to Uber and Lyft ending operations in Austin, Texas.
Instead, the state agency voted for a different background check option, one that the ride-hailing apps are expected to be much more comfortable with. The new rules partly codify what the companies already do in terms of drivers reporting any legal charges, a survey of the driver's history and control of the decals that indicate an Uber or Lyft driver. The rest of the new regulations are about keeping the state appraised of what is going on, including new drivers, any changes in the background check process and annual reports to the commission about safety complaints and drivers who are no longer allowed to drive for the companies.
Uber and Lyft have 10 days to say they agree to the new rules, but that's likely to be an easy lift. Uber's main argument to the commission ahead of the hearing had been around the inadequacy of the fingerprinting system versus its own methods. The state is basically just agreeing with that, and adding some transparency so that it can keep on top of any potential issues that arise.
Assuming all goes well, this is an impressive win for the ride-hailing startups. After the fight Uber and Maryland had in 2014 led to a temporary resolution in the wake of Uber's public campaign (with free rides), the tension about the future of Uber and Lyft still hung in the air. Now, it looks like that potential blow up won't come to pass at all.
