Users of transportation companies like Uber and Lyft can look forward to the same low rates even if Georgia’s ridesharing regulation bills are ratified, according to Joel R. Quinn, a two-year Uber driver and moderator of the Uber driver Reddit forum.
Georgia House Rep. Alan Powell said he and a committee of Republican house representatives are backing two bills to regulate the fair market between ridesharing companies and the competing limousine and taxi industry.
A “ride share network service,” as defined by House Bill 225 (HB 225), is any entity using a digital or Internet network to connect passengers to drivers for the purpose of a prearranged transportation for hire.
House Bill 190 (HB 190), which passed in the Senate on March 31, would enforce more stringent licensing and insurance requirements for rideshare drivers, according to the Georgia General Assembly.
HB 225 would recognize and tax drivers as for-hire employees and reduce regulation on limousine and taxi companies. The bill passed in the Senate on March 26, according to assembly.
“In [HB] 225, we deregulated the limos and the taxis,” Powell said. “We put them all on the same playing field to let the best business model prevail.”
However, President of Atlanta Checker Cab Co. Rick Hewatt said companies like Uber and Lyft have long avoided licensing and insurance fees. He believes, if passed, the bills would not yield adequate regulation over the ridesharing industry.
“The new bills could give [ridesharing companies] the option to do their own [background] checks, which obviously are not worth anything,” he said.
Powell said safety is a primary concern and state government will regulate the standards of these background checks.
“We’re accepting Lyft and Uber background checks, but the background check has to be under the criteria of the state’s government,” he said. “My position as the chairman for public safety and homeland security is the whole reason I got involved in this … It was a background check issue for public safety.”
Safety and the ridesharing bills
Hewatt said he believes Uber and other ridesharing companies have been exploiting loopholes and shirking safety requirements.
“Their drivers are untrained and unverified,” he said. “They lack commercial insurance.”
Hewatt also said that an in-app agreement absolves Uber from all liability in the event of an accident.
“[By using the Uber app], you’re indemnifying them from any responsibility,” he said. “If they flip a car and kill a student, Uber has no responsibility.”
Elis Sanchez, Georgia State criminal justice major, said the proposed bills should quell some worries about safety, but ridesharing companies should remain largely unregulated.
“I think Uber should keep doing what they’re doing without being constrained by government [regulations],” he said.
“[But] these bills make it feel more safe for riders, because it gives them an official license rather than just a random person. Increased insurance requirements are just inevitable in a booming company’s life.”
Exercise science major Abraham Garcia said the safety measures need to be refined, but he agrees with Sanchez’s opinion regarding regulation.
“Uber needs to be allowed to take its course,” he said. “If it’s the thing of the future, why try and stop it?”
Uber representatives will also solicit driving opportunities to young adults using incentivized methods, according to Hewatt.
“College campuses are especially [lucrative],” he said. “They offer coupons and free rides and trinkets, and they solicit the students to become their drivers.”
Hewatt also said some of his drivers switched to the ridesharing field to work for Uber. He said 15 of those 20 drivers have returned to the Checker Cab Co.
“We’ve lost a lot of drivers to them, and have gotten almost all of them back because of the way [Uber] treats them,” he said.
Suspicion of other financial motives
Quinn said he believes there may be financial incentives behind the legislation process of HB 190 and 225.
“Attempts by representative Alan Powell to legislate this issue probably stem from his relationship with large taxi companies such as Checker Cab rather than a genuine concern for public safety,” he said. “Why would his constituents even care about a service that they can’t even use in their district? … The government wants more money, it’s that simple.”
However, Powell said Quinn is misinformed about the representatives prerogative, and he is creating an issue that doesn’t exist.
“He’s making the illusion that I did this because I am close to the taxi [companies] since they had made political contributions,” he said.
Powell also said he receives sponsorship from various sources, none of which influence his decision making.
“The lobbyists of Uber and Lyft have also made contributions to my campaign in a fundraiser last year,” he said. “I can assure you those campaign contributions had diddly-squat to do with what I did on these bills.”
Quinn said Uber has yet to make their drivers aware of any tentative procedural changes that could from HB 190 and 225. He also said customers will not experience any falter in service.
“[Uber and Lyft] have both lowered their prices to a level in which hiking [fares] would allow the other competitor a price advantage,” he said. “It’s five bucks for a ride — fares are about as low as they can be.”
I just got ripped off today 12:00 midnight by a regulated cab so this wasn’t over this wasn’t left this was a yellow rose a rose yellow taxi cab service he charged me $20 to go from the Chamblee station to 3115 Clairmont Road that fair is normally $8.75 how do I know this because I have been writing that sense February 2nd 2015 he then tried to tell me that it’s a new bond Georgia and that he has the right to charge me 20 dollars and above 80 fares after midnight he also went on to say that it’s clearly noted on the back of his head in the window that was not what was listed on the back of his window was at follow if you are paying if you are paying by credit card you took the rate for the fair is a minimum of $50 if further went on to say our drivers do not carry anything larger than a 20 dollar bill no where did it say there’s after midnight would be $20 to start now when I got in the cab he didn’t mention either that the rate would be $20 to start and he further went on to say that he has the right to charge any rider who gets into his cab after midnight because his insurance has gone up $450 that law which he is quoted if not for regulated taxi drivers what they are doing is they are taking advantage of that law to try to regulate over and lift services and cheating the patrons who need cab service I’m very angry I’m someone who is here on business and I have been here in Georgia since June of last year so I pretty much know what the rates are and I’ve never taken over or services at all so if this is truly a law I have never seen anything on TV indicate this is been the past I haven’t seen any cab drivers mention anything to me since I have been writing since February and I even rolled a cab in April the month of April March February January of this year so if so long to get back to me or find out from the taxi cab services of these are regulated once this is bigger than jello cab any of the cab companies are doing this is this either at the airport or by any of the train station why any of their drivers to be charging customers $20 to get into the cab so you mean to tell me that if you have a customer coming from the airport out of town the right there is normally $50 with the cab call me from the airport to whatever destination and now you’re going to tell me that the drivers can start off charging $20 to start on top of the 50 for the fare is $70 that is not how you do business I’m very angry about it and I’m just one of many this is happened to me today I’m out $20 for a ride affair that should have been $8.75 and I’m staying at the extended stay hotel 3115 Clairmont Road here in Atlanta and the ride was from Chamblee station if this is your law your law is awful so find out and clarify what the true law it and make sure that you are regulated taxi drivers are playing by the same field as and left and all the other unregulated services for the customers are not being overcharged
regardless if he charge you the ride that was $8.75 for $20 you have the right to take the picture of the meter rate and read the stickers on the door or window stating your right of riding the taxi and call the police on him and before you call the police make shore he has a valid license because most taxi driver in that area they don’t have a license and he might be one of them.
Based on how you wrote this with many of its words spelled wrong and its poor grammar, I can only wonder if you were able to read his sign accurately. I got your drift, but it was difficult. Perhaps you were so angry that you didn’t care if you were clear and accurate. To state your case better in the future, you might want to calm down and double check your post before sending it on.
We need to bring all industries under one Transportation Security arm of our Georgia government. All industries for hire need to come under the DOT regulation, the same as the limousine and buses are required to do. All companies operating for hire must have a business license, commercial insurance, commercial license tags, tax id number and endorsements set on there Georgia driver license. The state need to set legislation into motions to bring all industries for hire for the purpose of passenger service, to meet requirements. Uber and Luft should be required to establish a business base office in the state. They need to be made responsible for there drives, and the equipment they are operating. All vehicles need to be inspected and have issued inspection sticker placed on vehicles by DOT. If you are buying leads for service from Uber or Luft, they need to share in the Liability and responsibility to make sure the contract drivers meets the state requirements. Its our state. We need to get control of all industries for hire for the purpose of moving people around Georgia. Does it take more incidents with Uber and Luft to occur before we move on this.
Government has no more important responsibility than to provide for public safety, and many of our laws are for this purpose, including regulations covering vehicles for hire. Because there is a clear potential for harm to life and limb when individuals are transported in automobiles by strangers, the reasons for regulating vehicles for hire, such as taxicabs and limousines, are obvious and crucial. Accordingly, there is a compelling need for government oversight and standards pertaining to all aspects of the vehicle for hire business.
In Georgia, limousines are regulated by the state and taxicabs by local governments. These respective regulations are designed to ensure the public’s safety and otherwise promote public welfare, by accommodating this mode of ground transportation to the public at large with fair and reasonable rates. Hardworking, honest Georgians providing taxicab and limousine service to the public have invested years of capital and labor to comply with applicable laws.
On the other hand, Uber, Lyft and similar companies intentionally bypass and ignore the state and local regulations pertaining to vehicles for hires. They claim that because they use mobile device applications they are “technology” companies and not “transportation” companies. Their claims are intellectually false. Uber and Lyft are indeed transportation companies engaged in the vehicle for hire business, yet they freely operate without complying with state or local laws and without paying taxes on their business income.
The obvious and overwhelming risks to public safety by these companies are already being demonstrated. In San Francisco, an Uber driver plowed through a crowd of people and killed a six year old girl, resulting in Uber being sued for her wrongful death. This Uber driver would not have passed any reasonable background check applicable to taxi drivers in Atlanta or limousine chauffeurs in Georgia. Just two months ago in Atlanta, two women were victims of attempted sexual assaults by individuals they believed to be authorized taxi drivers.
Atlanta requires taxicabs to have a certificate of public necessity and convenience (CPNCs). Companies and drivers are required to have company permits. Background checks are performed on drivers, principals of companies, and CPNC owners. Vehicles are subject to semi-annual inspections, and companies are required to pay sales taxes. Uber and Lyft completely disregard these requirements.
While all of these requirements are important and have been imposed by Atlanta pursuant to its police powers, perhaps the most important is the subject of driver backgrounds. Consumers using Uber often believe that they are utilizing regulated taxicabs and have no idea that they are riding with drivers who have not been vetted by the city as to criminal background or driving history. Unsuspecting riders are being regularly exposed to such drivers.
There are other substantial problems with the manner in which Uber, Lyft and similar companies operate. Taxicabs are required to serve the public at large and may only refuse to provide service to an individual who is dangerous or intoxicated. Uber and Lyft, as a general proposition, seek to provide service only to a select few, leaving many city neighborhoods beneath their notice. Second, Uber does not recognize Atlanta’s fare structure and charges excessive prices during so-called times of peak demand, such as rush hour or bad weather. Uber has been accused of price gouging in other cities as a result of their practices.
Also, Uber’s contract with passengers requires the passengers to waive any claims against Uber resulting from the vehicle for hire transportation. Most passengers do not realize that the moment they accept a ride from Uber, they are releasing valuable legal rights that would protect their interest in the event of an accident. Moreover, there are serious unresolved questions about whether individual Uber drivers have proper commercial liability insurance and the extent of insurance coverage, if any, provided by Uber.
Important legislation has been introduced to require companies like Uber and Lyft to register as a transportation service referral provider. This bill will also requires these companies, when referring vehicle for hire business, to utilize legitimate taxicabs or limousines and prohibit referrals to unpermitted individuals using personal vehicles to provide ground transportation to the public. This legislation is grounded in common sense, legitimate concerns about public safety, and concepts of fair play for the companies that have been in compliance with the requirements for operating in the vehicle for hire business.
Uber and Lyft will argue that this legislation, and indeed, any attempt to regulate them, is anti-competitive. This is a false and misleading argument, as nothing in the proposed legislation prohibits Uber, Lyft or any similar company from doing business in Georgia. If these companies want to operate as traditional taxicabs and limousines, they must comply with the state and local regulations which govern those industries. If they want only to refer business, they must refer business to companies who comply with applicable state or local regulations. This law will create a level playing field and protect public safety.
A few years ago, the company Napster argued that because of technology, it should be able to authorize music downloads in complete disregard of copyright laws. Courts and lawmakers completely rejected this thinking, and the music download industry was required to comply with intellectual property laws. This analogy is apt. Chris Dolan, the San Francisco lawyer handling the wrongful death case of the child that was killed by the Uber driver, made a similar observation when he said “New technology does not eliminate well-established legal principles”. There are strong and necessary reasons why government regulates vehicles for hire. Companies like Uber and Lyft should not be allowed to operate, in complete disregard of the public safety and welfare and of principles of fair business competition, without complying with applicable regulations. Uber and Lyft are not above the law, and they should be held accountable for meeting the standards and adhering to the regulations Georgia’s taxicab and limousines companies observe.