MINNEAPOLIS — Minneapolis is among cities across the country deciding how best to regulate app-based rideshare companies that connect drivers with passengers.

Milwaukee is facing a similar challenge in neighboring Wisconsin.

A hearing Tuesday at Minneapolis City Hall drew quite a crowd. Taxi industry representatives argue companies, including Uber and Lyft, ought to be subject to the same regulations. But the smartphone-based companies say their services are unique. Their chauffeurs use their personal vehicles to transport customers and allow both the user and the provider to rate the experience.

Minneapolis is considering legalizing Lyft and Uber as transportation network companies. The city would regulate their insurance and require their cars to be inspected, but only taxicabs could accept passengers that hail vehicles on the street. Rides with Uber and Lyft would have to be prearranged.