Maryland regulators approved a settlement with Uber that will place the popular ride-sharing service under state regulation.
Under the terms of the settlement, Uber's subsidiary, Drinnen, would be required to apply for a motor carrier permit and hire drivers, whose names would be submitted to the Public Service Commission for background checks.
The settlement applies to UberBlack and UberSUV services.
Drinnen will be required to provide regulators with information about rates and charges, including surge pricing. With Uber's dynamic pricing model, the cost of a ride varies depending on time and demand, leaving some customers unpleasantly surprised.
The Maryland commission held a hearing on the proposed settlement in late December.
All drivers used by Drinnen will be required to hold Maryland passenger-for-hire licenses and drive cars with Maryland operating permits.
Taxi drivers have been some of the loudest opponents of ride-sharing; they say Uber and Lyft drivers don't have to pay the same fees or follow as many regulations as taxis do.
The Maryland settlement comes the week after Virginia Gov. Terry McAuliffe signed a law regulating ride-sharing services in Virginia. In October, the D.C. Council approved a bill to let ride-sharing companies operate permanently in the city.
