Jen Joyce, a community manager for the Uber rideshare service. (AP Photo/Ted S. Warren)

(Bloomberg) — Car-booking services run by Uber Technologies Inc., Lyft Inc. and Side.Cr LLC are creating “serious” gaps in coverage for drivers, passengers and pedestrians, California’s insurance regulator said.

Commissioner Dave Jones recommended that the startups provide $1 million in commercial liabilityinsurance starting from when a driver switches on one of their mobile apps, which connect vehicle owners with strangers looking for a ride, according to a statement today. He also urged the California Public Utilities Commission to adopt additional regulations of the industry after a recent investigative hearing.

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