Opinion: Who should drive your family?
Today, the New York State Assembly is kicking off a series of closed-door roundtable discussions on a bill – introduced by Assemblyman Kevin Cahill and state Sen. James Seward – that would designate companies like Uber, that provide for-hire transportation using non-commercial private vehicles, as Transportation Network Companies. The bill seeks to create quasi-part-time commercial insurance for people using their personal vehicle, but would also create two different sets of safety regulations in the process.
The Legislature must consider if any company providing transportation to paying customers should adhere to a specific set of rules. The type of car – or taxi – a customer rides in, or how they booked the ride, should not matter.
After all, there is no difference in the service provided by companies like Uber, taxis or other car services. The facts are these: all of these services take people from point A to point B for money; drivers work for themselves; and passengers can use an app to book a ride from almost any company.
On the other hand, besides the insurance issue, there is a significant difference in the safety rules that would apply to proposed Transportation Network Companies and those the rest of the car service and taxi industry must follow. Unlike these companies, car service and taxi drivers must carry a chauffeur license and must go through background checks and fingerprinting. Car service companies and taxis also have meters that are regulated and rates that are controlled, and must undergo more regular inspections. And, perhaps most importantly, unlike proposed Transportation Network Companies, taxi and car services must carry a license issued by a regulatory agency that can be suspended or even revoked if the companies do not adhere to these rules.
Thus, when it comes to safety, unlike for taxi and car service companies, the proposed bill would allow Uber, Lyft, and other Transportation Network Companies to self-regulate.
Consider this analogy: every restaurant that delivers food to your home is overseen by the Department of Health for food safety. If an online food delivery app starts offering home delivery, should it be regulated? Should it have to follow the same food safety rules that apply to everyone else? Should the facility where it prepares its food be inspected like any other commercial kitchen? Should we only care whether or not they have insurance?
Right now, in New York state, companies like Uber, seeking to be designated as a Transportation Network Company, are allowed to provide service under rules that govern the rest of the ground transportation sector.
Therefore, there is really no need to create this new classification. If legislators believe safety rules no longer apply to transportation, they should strike them from the entire ground transportation sector. If legislators believe safety rules must apply but wish to allow for part-time insurance this bill offers, they should simply enable the use of part-time insurance for the entire industry. Creating two sets of rules governing the same identical service simply makes no sense.
Avik Kabessa is a founding member of the Livery Roundtable; board member of the Taxicab, Limousine and Paratransit Association; and chairman of the New York State Independent Livery Driver Benefit Fund.