Don’t like dash cams in Uber and Lyft Cars? Senator Duo Introduces Bill to Address Recording Device Problem – Lyft (NASDAQ:LYFT), Uber Technologies (NYSE:UBER)

Two U.S. senators have introduced a bill that would impose obligations on passenger transportation companies such as Uber Technologies Inc. UBER AND Lyft Inc. LIFT informing passengers whether their drivers are recording them using car cameras.

What happened: Bill proposed by a senator. Marsha Blackburn (R-TN) and Sen. Peter Welch (D-VT), would require carriers to provide passengers with the opportunity to change drivers if they are uncomfortable with being recorded, Bloomberg reports.

Uber and Lyft drivers are increasingly using dash cams to document incidents such as car thefts, assaults and robberies. While the move was intended to make the service more secure and resolve disputes more easily, it raised privacy concerns.

The bill will have to pass through a U.S. Senate committee before it can be brought to a vote by the full Senate. The likelihood of its passage remains uncertain. If the legislation becomes law, it would be the first federal attempt to regulate trucking companies’ use of dash cams.

Uber and Lyft currently do not require drivers to register dash cams in their apps. However, Uber’s website states that the recordings can be used as evidence by the company, law enforcement and insurance companies in the event of an incident during the ride.

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Why is this important?: This move comes as Uber seeks to improve the safety of its passengers, especially women. In April, the company introduced security preferences to make it easier to get the most out of the app’s security features, especially at night. This was a response to growing concerns about passenger safety.

Despite these efforts, the company faced security challenges. In March, Uber’s CEO Dara Khosrowshahi outlined his vision for the company’s future at South by Southwest in Austin, Texas. He emphasized the company’s desire to expand its user base beyond the middle and upper classes by promoting ride-sharing among passengers to reduce costs. However, recent security concerns have cast doubt on the feasibility of this initiative.

Reduction: LYFT Inc shares closed Thursday at $14.48, down 6.82% on the day, and after-hours trading was at $14.54, up 0.42%. Year-to-date, LYFT stock has gained 4.93%. Meanwhile, on the same day, Uber Technologies shares closed at $70.86, down 3.13%. Uber shares are up 21.38% since the beginning of the year, according to data from Benzinga Pro.

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This story was generated by Benzinga Neuro and edited by Kaustubh Bagalkote