Negociado approves Turo's request for unregulated vehicle rental service in Puerto Rico

The government meeting held on April 23, 2025, focused on the regulatory framework established by Law 109 of 1962, which aims to protect the community through the oversight of public service companies. The meeting highlighted the powers granted to the regulatory body, known as the "negociado," to implement necessary regulations and oversight for various public services.

The discussion began with an overview of the authority given to the negociado under Article 36 of Law 109, which allows it to adopt rules essential for fulfilling its functions. The body is empowered to grant public authorizations not specified by other legal procedures. This includes the regulation of private vehicle companies engaged in commerce, which was emphasized as a critical area of oversight.

A significant point of discussion was the approval of the regulatory code on February 7, 2022, which established criteria for authorizing and regulating public service companies, including commercial transportation. The code defines a rental vehicle company as any individual or entity that owns, leases, controls, or manages a location for short-term vehicle rentals. It also specifies what constitutes a rental vehicle, encompassing various types of motor vehicles, including scooters and construction equipment.

The meeting outlined the requirements for rental vehicle companies, including the obligation to register their vehicle inventory biannually and pay the corresponding fees. The negociado issues certificates for various authorized services, including local transport networks and rental vehicles for ride-sharing companies.

A notable case discussed was the request from Turo Inc., a company that facilitates vehicle sharing through a digital platform. Turo's application for a non-regulated service was presented to the negociado on September 3, 2024. Following a public hearing on January 30, 2025, the negociado issued a resolution on April 1, 2025, granting Turo permission to operate as a non-regulated service for one year, contingent upon the establishment of a physical location to assess the necessity of this requirement.

In conclusion, the meeting underscored the ongoing efforts of the negociado to adapt regulatory frameworks to emerging service models in the transportation sector, ensuring that public safety and service quality are maintained while fostering innovation in vehicle rental and sharing services. The next steps involve monitoring Turo's operations and evaluating the effectiveness of the current regulatory measures.