Meanwhile, in California, the CPUC is examining its rules affecting ridesharing and taking public comment.

FORBES: SideCar Acquires Austin's HeyRide, Launches In Los Angeles, Austin, Philadelphia

To clarify this, Brown proposes implementing a cap on revenue for drivers in ridesharing programs as Tickengo does.

FORBES: Tickengo's Willie Brown Wants Revenue Cap For Ride-Sharing Drivers

Ridesharing has grown quickly, particularly in San Francisco, as mobile apps with donation-based fee systems have become popular.

FORBES: Tickengo's Willie Brown Wants Revenue Cap For Ride-Sharing Drivers

He says there are two features that make SideCar a ridesharing service, not a taxi service or other type of transportation company.

FORBES: SideCar Acquires Austin's HeyRide, Launches In Los Angeles, Austin, Philadelphia

Paul believes some cars cost more to upkeep and wants those drivers of those cars to be eligible for ridesharing and not to be considered commercial vehicles.

FORBES: SideCar Acquires Austin's HeyRide, Launches In Los Angeles, Austin, Philadelphia

Austin is an ideal place for ridesharing, particularly during the upcoming annual South By Southwest conference, when demand for transportation skyrockets and taxis are difficult to find, says Sunil Paul, CEO of SideCar.

FORBES: SideCar Acquires Austin's HeyRide, Launches In Los Angeles, Austin, Philadelphia

More over, the CPUC officially approved ridesharing -- where the drivers are not specifically licensed to drive a limousine or a taxi -- thus legitimizing Lyft and opening the door for others to offer such services in the future.

ENGADGET

Secondly, Paul says SideCar supports a limit on revenue per year for drivers, which will ensure that people are using the service as ridesharing and in theory are only using the money donated by riders in order to pay for car expenses, not to make a profit in a taxi-type service.

FORBES: SideCar Acquires Austin's HeyRide, Launches In Los Angeles, Austin, Philadelphia