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The Ride-Sharing Revolution:
Will Over-Regulation Limit Innovation?
1
What the User Sees
2
What the Driver Sees
3
Transparency in Transactions
4
Drivers and Riders Love it – in 160
Cities
Median wage for an
UberX driver
working at least 40
hours a week in
New York City is
$90,766 -Washington
Post
Uber can deliver
a ride to 43
percent of
Americans within
five minutes. -
Washington Post
5
“[The Driver]
picked me up from
my apartment,
took me to the
emergency room,
parked her car and
came in with me –
Lindsey (rider)
When it comes to exam
season, I can be in the
library not the driver’s seat
for as long as I need – and
when the stress is over, I’ll
be back on the road. Other
jobs just don’t give you this
kind of freedom. – Jamal
(engineering student/driver)
Lyft drivers in
Dallas working
40 hours can
expect to earn
$800 per week -
Lyft
Taxi Industry Complaints
“It’s just not fair. I had to buy a taxi medallion.”
“Some of the drivers have bad driving records.”
“Those drivers don’t know the neighborhoods and best routes”
“They don’t have adequate insurance to cover an accident.”
6
Taxi Regulators React
7
Miami Only state-licensed vehicles may give rides for a
fee, and law restricts number of limousine and taxi
medallions
Officers issued 77 citations and seized 9 vehicles
Las Vegas Transportation Authority set to impound unlicensed
vehicles
$10K fine &vehicle impounded, pending $20K bond
Cambridge, MA New ordinance - $50 minimum for non-taxi rides
Washington, DC Only city-licensed vehicles may give rides for a fee
Impounded cars and fined drivers
Virginia Fines and Cease-and-Desist orders for drivers not
“licensed”
Correcting Competitors’
Misunderstandings
Not fair? Taxi Commissioners have a state-granted
monopoly and their mission is to protect income
of taxi drivers
Dangerous drivers? Background checks and in-person interviews
before anyone can drive for Lyft or Uber
Driver ratings and Zero tolerance policy
Ignorance of
neighborhoods?
Map and traffic apps help drivers find the best
possible route
Inadequate insurance? Drivers carry personal insurance, and services
provide extra coverage when app is on 8
9
Insurance Coverage
Driver App is Off Driver App is On Accept Request and
Provide the Ride
Driver’s
personal policy
Driver’s personal policy
(unless activity is excluded)
Driver’s personal policy
(unless activity is excluded)
TNC: Contingent Liability of
$50/100K
TNC: Primary Liability of $1
million
TNC Contingent Collision
and Comprehensive
Colorado Law
10
Services must obtain
permits
TNCs like Lyft and Uber obtain state permits
– not each driver
Safe drivers Driver background checks every 5 years
Annual vehicle inspections
Insurance Driver or TNC must have $50/100K liability
coverage when the App is On
Driver or TNC must have $1 million liability
coverage during pre-arranged rides (2x the
taxi requirement)
Limitations Driver can not accept “street hails”
Rider transparency
requirements
After each ride, tell the rider:
Point of origin and destination
Time and distance
Total fare
Driver's first name and phone number
DC and Virginia Respond
11
Washington, DC Taxi Cab Commission reversed its prior
decision
Now allows Lyft and Uber without requiring
licenses
Virginia Adjusting old authorities for taxis & livery
into two new categories, including one for
technology-based services
Allowed Lyft and Uber to apply for licenses
Principles for your States and
Citizens
• Creativity: new regulations for a new idea
• Parity and facts for insurance requirements
• Consistency across your state
12
New Services!
13

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Ride-Sharing Revolution: Will Regulation Curb Innovation

  • 1. The Ride-Sharing Revolution: Will Over-Regulation Limit Innovation? 1
  • 2. What the User Sees 2
  • 5. Drivers and Riders Love it – in 160 Cities Median wage for an UberX driver working at least 40 hours a week in New York City is $90,766 -Washington Post Uber can deliver a ride to 43 percent of Americans within five minutes. - Washington Post 5 “[The Driver] picked me up from my apartment, took me to the emergency room, parked her car and came in with me – Lindsey (rider) When it comes to exam season, I can be in the library not the driver’s seat for as long as I need – and when the stress is over, I’ll be back on the road. Other jobs just don’t give you this kind of freedom. – Jamal (engineering student/driver) Lyft drivers in Dallas working 40 hours can expect to earn $800 per week - Lyft
  • 6. Taxi Industry Complaints “It’s just not fair. I had to buy a taxi medallion.” “Some of the drivers have bad driving records.” “Those drivers don’t know the neighborhoods and best routes” “They don’t have adequate insurance to cover an accident.” 6
  • 7. Taxi Regulators React 7 Miami Only state-licensed vehicles may give rides for a fee, and law restricts number of limousine and taxi medallions Officers issued 77 citations and seized 9 vehicles Las Vegas Transportation Authority set to impound unlicensed vehicles $10K fine &vehicle impounded, pending $20K bond Cambridge, MA New ordinance - $50 minimum for non-taxi rides Washington, DC Only city-licensed vehicles may give rides for a fee Impounded cars and fined drivers Virginia Fines and Cease-and-Desist orders for drivers not “licensed”
  • 8. Correcting Competitors’ Misunderstandings Not fair? Taxi Commissioners have a state-granted monopoly and their mission is to protect income of taxi drivers Dangerous drivers? Background checks and in-person interviews before anyone can drive for Lyft or Uber Driver ratings and Zero tolerance policy Ignorance of neighborhoods? Map and traffic apps help drivers find the best possible route Inadequate insurance? Drivers carry personal insurance, and services provide extra coverage when app is on 8
  • 9. 9 Insurance Coverage Driver App is Off Driver App is On Accept Request and Provide the Ride Driver’s personal policy Driver’s personal policy (unless activity is excluded) Driver’s personal policy (unless activity is excluded) TNC: Contingent Liability of $50/100K TNC: Primary Liability of $1 million TNC Contingent Collision and Comprehensive
  • 10. Colorado Law 10 Services must obtain permits TNCs like Lyft and Uber obtain state permits – not each driver Safe drivers Driver background checks every 5 years Annual vehicle inspections Insurance Driver or TNC must have $50/100K liability coverage when the App is On Driver or TNC must have $1 million liability coverage during pre-arranged rides (2x the taxi requirement) Limitations Driver can not accept “street hails” Rider transparency requirements After each ride, tell the rider: Point of origin and destination Time and distance Total fare Driver's first name and phone number
  • 11. DC and Virginia Respond 11 Washington, DC Taxi Cab Commission reversed its prior decision Now allows Lyft and Uber without requiring licenses Virginia Adjusting old authorities for taxis & livery into two new categories, including one for technology-based services Allowed Lyft and Uber to apply for licenses
  • 12. Principles for your States and Citizens • Creativity: new regulations for a new idea • Parity and facts for insurance requirements • Consistency across your state 12

Editor's Notes

  1. Delivery in Dallas too