Connecticut is unique in that the taxi and livery industries are regulated on a statewide level rather than the local level which is the more typical method of regulating these industries.  In order to receive a permit to operate either a taxi company or a livery company the applicant must show proof of  “public convenience and necessityâ€.  The rationale for such regulation is that if entry restrictions were loosened the result would be excessive entry with deteriorating service levels and quality.  On the other hand, some would argue that such a system unfairly benefits existing providers at the expense of potential entrants.  Transportation network companies have been operating outside of this regulatory framework claiming that they are something other than taxis or livery services.  They have defined themselves as technology companies providing technology to facilitate rides from independent contractors.

The rise of transportation network companies (TNCs) has been a disruptive force in the taxi and livery industries across many states and countries.  The TNCs would argue that they are providing better service at better prices than traditional service providers.  The taxi and livery industries tend to see TNCs as unregulated transportation service providers which put the public at risk.  The purpose of this paper is to investigate what role, if any, TNCs should play in the transportation market and how they should be regulated.