“The challenge is, whenever a company’s trying to make a rollout on a national basis and encountering these patchwork laws and trying to create a legal system, one that’s profitable for them, the fights will continue to proceed in multiple different forums,” Scott Malzahn, co-managing partner of Waymaker LLP, told Law360 on May 7, 2021 speaking about the car-share rental company turf wars in states across the nation.
The increase in car-sharing apps that connect personal vehicle owners to prospective renters has spurred both state and local regulations and court battles over whether the apps should be subject to the same rules as car rental companies. Key issues include whether the apps should be subject to licensing and permitting rules, taxes and fees similar to those imposed on traditional rental car companies and ride-share companies.
“There are legitimate differences in these business models [so] applying a one-size-fits-all approach isn’t always equitable,” Malzahn said. “These are the challenges of any business trying to break into a new area.”
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