Ramona Prieto, head of public policy for Uber, said in a press release that California’s SB 371 illustrates how collaboration between lawmakers, labor, and industry can reduce rideshare costs and enhance affordability for Californians.
“Sacramento has come together around the need to make rideshare more affordable in California,” said Prieto, Head of Public Policy for California. “we’re encouraged to see these two bills advancing in tandem. Together, they represent a compromise that lowers costs for riders while creating stronger voices for drivers. demonstrating how industry, labor, and lawmakers can work together to deliver real solutions that reflect how people live, work, and move today.”
California’s SB 371 is a 2025 insurance-reform bill aimed at improving rideshare affordability by reducing mandated uninsured/underinsured motorist (UM/UIM) coverage for transportation network companies. It also introduces transparency measures and a sunset review. According to a July 16, 2025 Assembly analysis, the bill proposes lowering UM/UIM from $1,000,000 to $50,000 per person/$100,000 per incident. Amendments are being debated to set these figures at $60,000/$300,000. The bill directs the California Public Utilities Commission (CPUC) to publish accident, insurance, and claims data to track impacts. Governor Gavin Newsom’s office described SB 371 as part of an affordability package intended to “make rideshare more affordable for millions” while ensuring protection for drivers and passengers.
A recent legislative analysis offers projections on how these insurance reforms could lower consumer costs per ride in California. According to the California Senate’s September 2025 analysis of SB 371, Lyft has calculated that an average of $6 per ride is allocated to insurance in California. In Los Angeles alone, “45% of a typical ride fare” in May 2025 was attributed to government-mandated insurance—figures used to argue that reducing UM/UIM thresholds should moderate fares for riders. Insurance Journal reports parallel findings from Uber estimating that insurance comprises roughly one-third of fares statewide and up to 45% in Los Angeles.
Georgia provides a recent example of how rideshare insurance reforms can influence rider costs. According to Georgia’s enacted HB 529 (2023), the state reduced required UM/UIM coverage for transportation network companies from $1,000,000 to $100,000 per person and $300,000 per accident. This directly lowered mandated insurance levels for ride-hail trips; subsequent broader litigation reforms led Georgia’s insurance commissioner to project statewide auto-insurance rate decreases of 3–5% for the year.
Prieto is Uber’s Head of Public Policy for California and played a significant role in negotiating the 2025 package linking SB 371’s insurance reforms with a driver-unionization pathway. According to Governor Newsom’s August 29, 2025 statement, Prieto endorsed the tandem bills as a compromise “that lowers costs for riders while creating stronger voices for drivers,” reflecting Uber’s policy priorities in California.
Uber Technologies Inc., based in San Francisco and founded in 2009, operates globally across Rides, Delivery, and Freight sectors. The company serves dozens of countries and facilitates tens of millions of trips daily worldwide. Current policy priorities include addressing mandated insurance costs that Uber says account for a significant share of fares while supporting safe mobility options for riders and sustainable earnings opportunities for drivers.
