The R Street Institute is urging Congress to extend the liability protections of the Graves Amendment to rideshare and peer-to-peer transportation platforms, arguing that the change would create consistent standards across the industry.
The recommendation comes as lawmakers prepare to reauthorize federal surface transportation programs, with current funding authority set to expire Sept. 30.
In a commentary published on its website, the organization said a patchwork of state laws has produced uneven liability rules for peer-to-peer transportation services. Aligning those standards with existing federal protections, it argued, would establish a more uniform national framework.
Several states have already moved in that direction.
Texas enacted House Bill 1745 to limit vicarious liability for rideshare services, providing protections for platform companies and aligning with federal preemption principles applied in other transportation sectors. Florida has adopted similar statutes governing transportation network companies, restricting certain forms of company liability for driver actions.
According to the American Tort Reform Association (ATRA), these measures reflect a broader trend toward shielding emerging business models from inconsistent legal exposure.
Congress enacted the Graves Amendment in 2005 to eliminate vicarious liability for rental car and vehicle leasing companies. The law preempts state statutes that previously allowed lawsuits against rental companies for accidents caused by drivers. Legal analyses indicate that roughly 30 states have since adopted their own limits on platform liability. Extending comparable federal protections to peer-to-peer car-sharing services, proponents say, would bring greater consistency to a rapidly growing market.
The R Street Institute is a nonprofit public policy research organization focused on free-market solutions and limited, effective government. It conducts research on transportation, insurance, trade and regulatory issues, with the goal of informing federal and state policymaking, and frequently publishes analysis on infrastructure modernization and emerging business models.
