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2016 Could Be a Make or Break Year for Ride-Sharing Companies

The wildly popular ride-sharing apps like Lyft and Uber are in the midst of expansion, but are being slowed down by hundreds of pending lawsuits. Will 2016 be their year to break the market, or will they be bogged down entirely?

(TNS) -- Daily fantasy sports companies have become the face of the fight between technology and regulation, but 2016 is shaping up to be a hugely important year for ride-hailing companies such as Uber and Lyft.

The controversial companies are still trying to grow their products and user base, while grappling with a slew of lawsuits across the country and the uncertain prospect of regulations in the state.

“It’s something we are taking piece by piece very thoughtfully, but with the understanding we want to get something done in a good period of time,” said state Rep. Aaron Michlewitz (D-Boston), co-chairman of the Joint Committee on Financial Services. “We’re trying to craft a piece of legislation that has public safety and consumer protection in mind and is fair and balanced.”

Michlewitz and his co-chairman state Sen. James Eldridge (D-Acton) said there is no timetable for the bill to come out of committee, but both said they are committed to reporting out a bill that will pass.

“I’m hoping it can be the gold standard of Uber legislation for all the states,” Eldridge said.

Nothing has been decided yet, Eldridge and Michlewitz said, but one of the key issues is likely to be background checks. Boston Police and others have pushed for requiring fingerprint background checks for drivers, which the companies have balked at. Uber has said fingerprint background checks are not any safer than other background checks, and are more prone to errors, and has threatened to pull out of the state if they are required.

The story of ride-hailing companies this year will also likely be decided in the courts. A lawsuit filed by Boston taxi medallion owners against Uber in 2013 is scheduled for trial in July. The lawsuit claims medallion owners are owed damages because Uber has not been subject to the city and state’s intricate taxi regulations.

Other civil suits continue to move forward, including one over the fee Uber charges for trips to Logan International Airport.

While Uber and Lyft face these challenges, they are also pushing ahead with new ways of getting from point A to point B. UberPOOL and Lyft Line, which let strangers going in the same direction share a ride, have both been launched in Boston. And the companies say they are working hard on improving the service and adding features including sharing rides with more people.

“That remains one of our focus areas because we’re ?really excited about the potential Uberpool has,” said Cathy Zhou, general manager of Uber Boston.

Meanwhile, Uber and Lyft are locked in a fierce battle for riders and drivers. Pink Lyft ads have popped up across ?Boston trying to lure drivers, but a local upstart is also trying to make a dent.

“It’s just growing, making sure we’re one of the big boys soon enough in Boston,” said Vlad Christoff, chief operating officer and co-founder of Fasten, of the plan for 2016. “There’s no magic to it, there’s just hard work.”

©2016 the Boston Herald Distributed by Tribune Content Agency, LLC.