Ride-Sharing Raises Questions About Safety, Equity, Licensing While government entities grapple with the dubious legality of private ride-sharing providers, a Denver transportation leader says regulation is necessary to prevent “chaos” in the business. “We need to make sure every one of us is following the rules to make the vehicle transportation industry safe and convenient for the public,” says Abdi Buni, who is generally credited with founding Union Taxi. “Regulation is all about protecting the public interest.” Buni’s insights come as increasing numbers of ride-sharing enterprises are popping up – with names like UberX, Lyft, and SideCar. Many cab, limousine, and shuttle driv-
ered licensing at their very first meeting in 2012, and the issue returns with the advent of ride-sharing. Denver ordinance (Sec. 55-41) states: “It shall be unlawful for any person to drive or be permitted to drive a vehicle for hire on the streets of the City for business purposes unless such person is properly licensed by the director of excise and licenses.” The Taxi and Limo Council has not yet determined how to apply the ordinance to private drivers.
Waiting until something big happens
“We need a level playing field,” says Buni. “Right now, UberX and Lyft drivers do not have licenses. There is punishment for regulated drivers who do not have a valid license, but the city is openly ignoring the rule for ride-sharing. Everybody seems to be waiting until something big happens, such as an accident or a crime.” In San Francisco, for example, the family of a 6-year-old girl is suing Uber for wrongful death after the girl was allegedly struck by a ride-sharing driver. A Lyft operator is charged with striking another pedestrian in San Francisco. “It is very hard to know who is driving privately for a fee,” observes Buni. “All licensed drivers have a marked vehicle. But with private drivers in an unmarked vehicle, who knows who is licensed, who is paying taxes, and who is paying airport gate fees?” Buni says he welcomes competition. “The big difference is technology. Everything that is new is more attractive. But all the cab companies have the same capability of being summoned by smart phone. The ‘app’ is just a style of doing business. It’s really a question of how to operate competitively and follow the rules. Remember, public transportation started with a horse and advanced from there.” He points out that Union Taxi entered a competitive market already occupied by Yellow, Metro, and Freedom cab companies. The ride-sharing companies have also come under criticism for what’s called “surge pricing,” or increased charges when service demand is high. For example, drivers generally apply much higher fares when the need is greatest, such as weekends in LoDo and holidays. Park Hill resident Jerry Spinelli says he couldn’t get the UberX app off of his phone fast enough when he was victimized by surge pricing. In addition, some ride-sharing users believe a negotiated fare is less expensive, when a regulated taxi fare might actually be lower.
City Matters
Dave Felice
ers nationwide say these mostly unregulated and under-insured businesses present unfair competition and directly threaten the livelihoods of traditional drivers offering the same services.
In a gray area
Prior to the recent legislative session, companies such as UberX and Lyft were operating in an undetermined legal area, without the same insurance and licensing requirements as established businesses providing car transportation. The Public Utilities Commission (PUC) even considered a “cease and desist” order against the ridesharing services, now known as Transportation Network Companies (TNC). The companies have since agreed to insurance and other operating requirements. With lower insurance obligations for ridesharing operators, the PUC has temporarily reduced the insurance coverage limits for cabs and other licensed drivers. The TNCs originally contended they were not responsible for these requirements because they were only acting as a broker, and not actually providing transportation. “Lack of regulation is chaos,” says Buni. “Deregulation of transportation services makes it more difficult for drivers to operate responsibly, provide a needed service, and earn a living. Deregulation will flood the market and actually reduce demand, with no quality control.”
No ‘street-hails’ allowed
The Colorado bill, passed in the recently ended legislative session, requires private drivers to carry liability insurance. It sets standards on background checks for drivers, and requires vehicle inspections. The legislation also requires TNCs to obtain operating authorization from the PUC, and sets aside an administrative appropriation. Under the legislation, a TNC must match a rider and driver through a “digital network,” such as a smartphone. Drivers are not allowed to accept on-demand summoning – known as a “street hail.” Licensing, insurance, taxes, fees, and security are big issues, says Buni. No matter what the legislature, governor, or PUC decides, the city of Denver will have to determine public transit operating rules and how those rules are applied. Buni currently represents ABC Shuttle on Denver’s Taxi and Limo Council, a little-known function of the city’s Excise and Licenses Department. The council includes representatives of the four cab companies, the limousine association, pedicabs, shuttle companies, city government, and several tourism industry agencies. The core members meet every third Monday and the full council meets on the last Friday of each month. Taxi and Limo Council members considPage 6
Little consensus nationwide
Buni says the city is also losing tax revenue. “All regulated drivers, individually, have to pay taxes. Currently, there is no way to tell if a private operator is paying the same taxes. We are waiting to see how the city implements rules to collect taxes from ride-sharing drivers.” There is also a question about being the “the provider of last resort.” Regulated cab companies are required to take all customers, regardless of distance or other circumstances, such as rider disability. Until Excise and Licenses determines what rules apply, ride-sharing drivers can decide to refuse to provide service. Nationwide, there seems to be no consensus on regulation of ride-sharing. Some cities (such as New York) ban the service outright. Other municipalities allow TNCs to operate with minimal oversight. In Washington D.C., a city dependent on cabs and limousines, ride sharing services operate under the same rules as marked, licensed, and insured transportation providers. Dave Felice is an at-large delegate on the Greater Park Hill Community Board of Governors. The Greater Park Hill News
June 2014