Getmanglobal, TOV

Цена в App Store: Бесплатно


Getmanglobal, TOV

Цена в Play Market: Бесплатно

Carsharing in the USA: happiness and horrors of the market

We often say and think that abroad is better. The United States, with their advanced technologies and forward movement fill better we think so. Carsharing is also grateful to the US for its development, it was there it  got a flowering and moving forward.

Is this all so wonderful in the US in the field of car sharing and what are the challenges faced by companies and users in the US?


There is an increasing debate about the adoption of special laws for car sharing in the US, as well as for platforms such as Uber, Lyft. The fact is that the US legislation, like the Ukrainian one, lags behind the current market trends.


The US legislation did not understand what car sharing is until the 2005 Graves Amendment was adopted, which indicated that car sharing is not a classical lease (or car rental), it is a lease transaction made under the federal law.


Another version of the definition of car sharing is given by the basis of judicial precedent, namely in 2018 arose the case San Francisco City against Turo. Where the city asks to recognize the Turo as a classic car rental company or equate it with such and oblige to pay service charges at the airport, as all car rental companies do.


Turo is a service of a car sharing in a Р2Р format.


Turo, said that it is not a car rental service, but is simply a platform by which car owners look for tenants for cars.


Graves Amendment protects car rental

The 2005 Graves Amendment protects the rental and leasing industry in the event of an accident, as it clearly indicates that the owner is protected when damage is inflicted to third parties. At the same time, the amendment can be applied to the carsharing and not applied.

To be applied: the amendment extends not only to owners of vehicles, but also to those who are engaged in business, without the presence of vehicles.

Not applicable: the position of the court in such a matter was that the carsharing was not recognized as a classic hire, because the user did not pay for the daily rental, but the court missed that the owner received another reward when using the car (mileage, minutes ...).


Telematics in the car sharing

When using the car sharing, there is always a need for using telematics data, including the location of the car's position, speed and etc.

It should be noted that some states prohibit the use of certain telematics data, since they believe that this can harm a person.

For example, the states of California, New York, Connecticut and Montana, prohibit the use of telematics data about the location of the car, at the moment when the vehicle is used by the customer.


Legislation for people with disabilities

American legislation also has statutory acts that protect people with disabilities (disabled people), prescribing mandatory conditions for companies that are engaged in car rental, and these requirements apply to car sharing.


  1. Provision of additional equipment in the car, for persons with disabilities, without charging for such equipment
  2. There is no prohibition or additional payments for the transportation of animals, except for the payment for additional cleaning of the car
  3. Lack of payment for an additional driver for people with disabilities


Car service and car reviews

US legislation provides that in the case of issuing a document on the need for maintenance or recall of cars by the manufacturer, the rental company can not use, sell or lease cars until their service, if at the time of issuing the act of recall, the car was not rented by the tenant but managed by the company. For companies with a fleet of vehicles up to 5,000 vehicles, the response period is 24 hours, for companies with a fleet of 5,000 cars, 48 ​​hours.

Here we immediately see a contradiction with the car sharing, because in fact the car is not transferred to the company, but simply subsequent rental transactions by other users.


Criteria for the car sharing users

US law does not provide an opportunity to set any barriers for users of the car sharing. In fact, if you have a driving license, you can use a car sharing. But, insurance companies introduce additional criteria that limit drivers by age and length of driving. These restrictions are not prohibited, since they affect the insurance market and the policy of insurance companies.


Additional payments

Legislation in some states prohibits the collection of additional fees. For example, in California, payments for additional drivers are forbidden, the states of Nevada and New York have generally imposed a ban on any additional payments. But on the other hand, all of the above states do not prohibit the collection of payment due to a young age and the payment of additional insurance.


Personal Information

Federal and state legislation imposes certain restrictions on the collection of personal data. But mobile applications that are tightly integrated into our lives, more and more require personal data, as in fact many procedures are already conducted without operators, and online, hence such a service as a personal data is required for the service. Legislatively, significant obligations have been imposed on each company to systematize and store these data, which means that companies also bear significant costs for servicing this information.


If this article was useful to you, share information about us in social networks

You may also be interested in: