Memphis Law : Spring 2015

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in a recent interview with the Memphis Flyer. "They're everyday residents who are able to, after passing our rigorous background checks, drive when they have the time, to make ends meet." Uber and Lyft already require more stringent background checks than the city requires, according to company representatives. The city would prefer to use fingerprints to check for criminal records, but Uber and Lyft’s current method of using credit checks lets the company know both criminal records and pending crimes. “We are not anti-regulation in any capacity,” said Billy Guernier, GM for Regional Expansion at Uber. “We are simply for regulation that makes sense. In a lot of cities, it is just a case of the laws having to adapt to transportation network companies as a new entity that does not make sense in the old structure of their regulations.” Memphis City Councilman Kemp Conrad has been a key figure in the local efforts to find a middle ground with ridesharing services.

As the ordinance currently stands at the time of this writing, ridesharing providers would be required to certify under oath that they had

most cities’ efforts, and drivers carry their own

these services here,” said Councilman Conrad.

insurance on their vehicles.

“It would be devastating to Memphis and our

The ridesharing industry got off to a bumpy

citizens. These services have just become a basic

start in Memphis. In the summer of 2014, the Memphis International Airport informed Uber

expectation amongst business travelers, young people, and tourists when visiting or considering

performed background checks, and would also make personnel records available to the city on request, according to Conrad. The new ordinance would also set up a standard insurance model that all ridesharing services must follow and would ban the drivers from accepting on-

and Lyft that their drivers would not be allowed

relocating to a major city like Memphis.”

to pickup or dropoff customers at the airport

One problem area involves the submission of

come through the companies’ smartphone-based

and issued cease and desist letters to Uber and

drivers’ personal information to the city. Both

apps. Additionally, to operate in Memphis, Uber,

Lyft, which both companies ignored. Talks and

Conrad and the ridesharing representatives

Lyft and other ridesharing companies will have

negotiations finally began, but as in other cities

have said it’s unrealistic to expect Uber and Lyft

to pay a $15,000 registration fee every calendar

across the nation, it has not been as fast or easy to

drivers to meet the same standards as taxi and

year except the first, which will be pro-rated.

adapt existing policies and regulations to the new

limousine drivers, because they are often just

Ridesharing companies also will have to “provide

ridesharing industry.

part-time employees with other full-time jobs.

for and require” the annual inspection of their

Memphis City Councilman Kemp Conrad has

Chelsea Wilson, a spokeswoman for Lyft, said

drivers’ vehicles and give the city annual reports

been a key figure in the local efforts to find a

they worked with the city to help draft the

showing rider pickup and dropoff patterns, cost

middle ground. Conrad worked for months to

ordinance.

of trip and length of trip.

finalize the details of a proposed ordinance and

"We're not opposed to regulation. We want to

In addition to being a popular service for young

make sure that any regulations recognize the

professionals and law students, ridesharing

difference in our model and understand that our

services also serve as an easy way to supplement

drivers are not professional drivers," Wilson said

income for those with spare time. However,

amendment that would update taxi and limousine regulation for the new transportation era. “It would be an absolute travesty if we lose 19

the-street hailing, meaning that all fares must


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