Uber may be on the brink of another battle with California lawmakers.
Los Angeles Mayor Eric Garcetti on Friday stated that he was thinking about instituting a requirement that would enforce ride-share services to use electric vehicles.
“We have the power to regulate car share,” stated Garcetti in his interview with the Financial Times. “We can mandate, and are looking carefully at mandating, that any of those vehicles in the future be electric.”
The plan would be a part of LA’s effort to cut its greenhouse gas emissions and achieve carbon-neutral status by 2050.
If the requirement was imposed, it would be a blow to Uber in one of its best five largest markets. Uber was already hit by a major setback in the Golden State when lawmakers passed legislation that classified drivers like workers instead of contractors — making them qualified for minimum wage and paid time off.
“I think there’s going to be more asks like this from cities and states, especially when it comes to California, which has two of its top five cities globally,” Wedbush analyst Dan Ives said, referring to Los Angeles and San Francisco.
“It speaks to a trend that the regulatory environment and Uber’s relationships with cities and states are starting to get uncomfortably complex,” he included.
