Edisto Island Shuttle shows how red tape hurts small-town transportation

When large rideshare companies don’t serve rural South Carolina, small operators step up, but government rules make it an uphill climb.

There are several rural communities across South Carolina where major rideshare companies like Uber and Lyft have declined to operate. This is due to a mix of factors, chiefly limited market interest. In short, not enough riders use the service to make it financially viable for large companies to maintain a presence or for drivers to earn a living in these areas. 

A report from The Nerve found that at least 100 small towns or cities in South Carolina are not serviced by these larger rideshare companies.  

This opens a market for smaller companies to operate in these rural communities.  Enter David Crawford, the owner of Edisto Island Shuttle. His company fills this gap by offering affordable transportation to a community that isn’t serviced by rideshare options.  

Edisto Island Shuttle offers rides across the island and hires local residents, often retired, as drivers. 

However, the way Crawford’s company is regulated under state law requires him to abide by regulations that larger companies need not comply with. It’s a classic example of government picking winners and losers. 

The problem 

Under current state law, Crawford’s vehicles are regulated placed in the same group as taxis and limousines as “Class C”. Because his company is classified under “Class C” alongside taxis and limousines, Crawford faces higher insurance costs and stricter licensing rules. 

Uber and Lyft on the other hand are categorized as “Transportation Network Companies” (TNC). The categorization is specific to transportation services that use an app to connect passengers and a driver.  

When The Nerve asked Crawford why his business should be regulated as a TNC rather than a taxi service with Class C Classification he responded with “You’re not a taxi service because you’re scheduled in advance through a digital platform, such as a website. … You’re not hailed.” 

The Nerve reports that in 2021, across the state, at least 10 percent of rural households in nine counties had no vehicle. In these rural communities where the large rideshare companies don’t operate, local transportation services may be the only way residents can get around. 

For residents in these rural areas, especially those with medical conditions that prevent them from driving, the over regulation of local transportation companies is directly preventing them from accessing this service.  

If the government would step aside, free-market solutions could thrive to fill the gap left by Uber and Lyft, just as Edisto Island Shuttle has done in its community. 

The legislative solution 

H.3474, filed by Rep. Leon Stavrinakis, would amend the Transportation Network Company Act to redefine “personal vehicle” and “prearranged ride,” allowing smaller for-hire companies to qualify as Transportation Network Companies (TNCs). This would enable operators like Edisto Island Shuttle to select more affordable insurance coverage and file their own inspection reports, just as Uber and Lyft do. 

The bill stalled in the Senate after passing the House in the previous session, despite facing no vocal opposition. The bill was prefiled in December 2024 and assigned to the House Labor, Commerce and Industry Committee but was never taken up in 2025. 

The South Carolina Legislature should advance this legislation to provide small transportation companies across the state, like Edisto Island Shuttle, with much-needed regulatory relief.  

Failure to act on this legislation would directly hurt small transportation business owners like David Crawford as well as rural communities located in transportation deserts.  

State government should not be choosing winners and losers. Specifically, it should not place small, local businesses at a strategic regulatory disadvantage to benefit multinational corporations. 

Let the free market do its job. When government steps aside, businesses that provide real value will thrive and communities like Edisto Island will benefit. The state should remove the red tape that prevents rural entrepreneurs from competing on a level playing field. 

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