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Battle To Regulate Ridesharing Moves Through States 328

New submitter jeffengel writes: The push to regulate services like Uber and Lyft has spread through state legislatures nationwide. At least 15 states have passed ridesharing laws in 2015, joining Colorado, California, and Illinois from last year. More could follow, with bills pending in Massachusetts, Michigan, North Carolina, and others. All this activity has led to new clashes with companies, city leaders, and consumers. Ridesharing bills have stalled or been killed off in Texas, Florida, New Mexico, and Mississippi. Meanwhile, Uber has exited Kansas and is threatening to leave New Jersey and Oregon, while Lyft has ceased operations in Houston, Columbus, and Tacoma. How this plays out could affect the companies' expansion plans, as well as the future of transportation systems worldwide.
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Battle To Regulate Ridesharing Moves Through States

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  • Mixed reaction (Score:5, Insightful)

    by JoshuaZ ( 1134087 ) on Tuesday May 19, 2015 @09:44AM (#49725413) Homepage
    I'm not sure how I feel about this. On the one hand, some of these regulations are clear attempts to just protect the taxi industry from new models. On the other hand, some of the regulations (like having some basic insurance to cover if things go wrong) are pretty reasonable. On the gripping hand, both Uber and Lyft are both just blatantly ignoring regulations in many jurisdictions, and whether or not one thinks the laws should be there, it is hard to think that having cheaper car services is such a compellingly necessary service that it can morally or ethically justify ignoring laws.
    • That is a good summary of how I look at it as well. If they want to share rides for free it may be different, but charging money means you are a business and must operate within the regulated business environment. That also means drivers paying taxes on income, and possibly registering their car as a business asset.

      OTOH, it seems to make a lot of sense to have a way to share rides and cost.
      • Re: (Score:3, Interesting)

        by Anonymous Coward

        Uber is as much ridesharing as ordering pizza using a Pizza Hut app is foodsharing. I think. Not sure if Pizza Hut drivers are independent contractors. Well, anyway...

        I would propose that if any "taxi" driver earns less than $200/month, that they should have looser regulations. I'd also propose that auto insurance should have to cover situations like that (regular auto insurance) provided that no more than $200/month is being earned. This $200/month figure calculated by averaging the previous three month's

    • I'm not sure how I feel about this. On the one hand, some of these regulations are clear attempts to just protect the taxi industry from new models. On the other hand, some of the regulations (like having some basic insurance to cover if things go wrong) are pretty reasonable. On the gripping hand, both Uber and Lyft are both just blatantly ignoring regulations in many jurisdictions, and whether or not one thinks the laws should be there, it is hard to think that having cheaper car services is such a compellingly necessary service that it can morally or ethically justify ignoring laws.

      If you wish to speak of morals and ethics, perhaps you should review the existing structure and their pricing model first.

      There's a reason we have a compelling argument for competition here, and it's not because they have cooler looking cars.

      • Re:Mixed reaction (Score:5, Insightful)

        by Registered Coward v2 ( 447531 ) on Tuesday May 19, 2015 @10:03AM (#49725573)

        I'm not sure how I feel about this. On the one hand, some of these regulations are clear attempts to just protect the taxi industry from new models. On the other hand, some of the regulations (like having some basic insurance to cover if things go wrong) are pretty reasonable. On the gripping hand, both Uber and Lyft are both just blatantly ignoring regulations in many jurisdictions, and whether or not one thinks the laws should be there, it is hard to think that having cheaper car services is such a compellingly necessary service that it can morally or ethically justify ignoring laws.

        If you wish to speak of morals and ethics, perhaps you should review the existing structure and their pricing model first.

        There's a reason we have a compelling argument for competition here, and it's not because they have cooler looking cars.

        There certainly is a compelling argument for competition, as there is for proper regulation. So when one looks at the existing structure the question becomes what parts of it need to be applicable to new entrants providing the same service, i.e a ride for hire? Uber et. al. are merely a modification of the existing call a taxi on a phone model and thus should be subject to similar regulatory oversight. You contact a dispatcher, they send an independent contractor to pick you up and take you to a location for a fee. They may not have a medallion on their car and may or may not own the car but the end result is the same - a ride to a location in exchange for money.

        Of course the existing companies are fighting tooth and nail becasue there is a lot of money at stake. In locations where medallions are scarce people can have hundred of thousands of dollars tied up in medallions, the medallion may be the most valuable thing the company or individual owns. Uber threatens that by putting cars on the road, thus threatening to overcome the artificially constrained supply of cabs and make owning a medallion necessary and thus lowering the value of existing medallions. So one can expect the medallion owners, as well as those who lend money to people to buy them, to fight back. Interestingly enough a medallion is one expensive item that is tailored to people with poor or no credit, since as one lender put it "If they don't pay all I have to do is pry the medallion off of the hood. I can then resell it but they can no longer drive so they'll do anything needed to make their payments."

        • Re:Mixed reaction (Score:5, Insightful)

          by Impy the Impiuos Imp ( 442658 ) on Tuesday May 19, 2015 @10:31AM (#49725789) Journal

          As long as the medallion and similar limiting systems continue to exist, all gloves are off as far as I'm concerned.

          There's more to freedom than freedom of speech -- freedom to pursue your own business, and nobody has thr right to restrict entry for the purpose of limiting co.petition. "This here town ain't big enough to support two companies" should be left on the scrap heap of disreputable history.

      • If you wish to speak of morals and ethics, perhaps you should review the existing structure and their pricing model first.

        There's a reason we have a compelling argument for competition here, and it's not because they have cooler looking cars.

        In my view the compelling reason for Uber and Lyft is that you can view the rating of your driver and have some confidence that the driver will be professional and courteous prior to ordering the service. You have no such luck at the airport taxi stand, sometimes you get the worst driver who adds miles while talking on the phone.

        The current turmoils between government and 'ride sharing' shall pass, government will get their taxes and the taxi system will either adapt or fade away.

        • In my view the compelling reason for Uber and Lyft is that you can view the rating of your driver and have some confidence that the driver will be professional and courteous prior to ordering the service. You have no such luck at the airport taxi stand,

          yeah, in my experience the ratings you see in the internet are always 100% accurate, people never lie or exaggerate on the internet.

        • Re:Mixed reaction (Score:4, Informative)

          by demonlapin ( 527802 ) on Tuesday May 19, 2015 @06:28PM (#49730377) Homepage Journal
          As an aside, I have found that showing a taxi driver your destination on Google Maps on your phone is a very reliable way to insure that they take you via the quickest route. And Uber Black is well worth the small premium for the ride experience if you're not depending on it for day-to-day transportation.
    • Why should the government try to protect an old business model from a new one?
      The real issue should be is evaluating regulations that the Taxi companies have to follow and the rules that Uber drivers do not. I am willing to guess there is a happy middle ground there... Where Taxi Companies with less restrictive regulations can compete better with Uber. However insuring the Uber Drivers meet with a particular safety and quality standard.

      • by dj245 ( 732906 )

        The real issue should be is evaluating regulations that the Taxi companies have to follow and the rules that Uber drivers do not.

        Why? In most places, the rules that Uber isn't following are because they are operating in violation of the law. They themselves have created the uneven playing field by refusing to operate under the law. The only distinction between Uber and a traditional taxi dispatcher dispatching independent cabs is that one uses a piece of software and the other (historically) has used phones.

    • I think the benefit of a cheap taxi service outweighs the risk that is mitigated by having better insurance. The drivers should already have basic auto insurance, and the passengers should already have health insurance. Isn't that enough?
    • Proper insurance and background checks are definitely a good thing.

      But the legacy taxi companies, the medallion system, and the laws they're bought to fix prices and prevent competition... especially bringing about that aforementioned medallion system, are a font of corruption and scumbaggery easily on the level of the RIAA/MPAA/Metallica copyright cartel types. They effect fewer people, as people out in the suburbs don't generally take cabs/Uber/transit. But as someone who's lived in an urban city since

    • I can call, text, or book a ride with an app using a regular taxi service the car picks me up and drops me off at my destination for a fee. Uber's big idea is the drivers supply their own vehicle and are responsible for their license, insurance, and car's upkeep. Uber supplies an app to book a ride and takes a cut they are still a taxi service they just avoid the overhead of a fleet of cars.

      They ran into issues with regulations in Kansas and they are somewhat relaxed compared to other places. The problem is

      • The problem is that if they make the driver get actual commercial insurance instead of driving around on a minimum liability private policy {even though it's still a piddly amount of coverage} the price goes up and makes it harder for them to find drivers.

        this is not a "problem", this is how the market works.

  • Ride hailing (Score:5, Informative)

    by Oneflower ( 7827 ) on Tuesday May 19, 2015 @09:51AM (#49725469)

    There, corrected it for you.

    These businesses have nothing to do with sharing: it's hiring a driver and a car.

  • by Anonymous Coward on Tuesday May 19, 2015 @09:58AM (#49725529)

    It is NOT ridesharing! Ridesharing is when you share a ride with someone. These are people who are being paid to bring you somewhere, but they don't plan on going there too!

    Ridesharing is perhaps carpooling to work. Or maybe a student hopping a ride with another student in college to go home for break.

    • by Nidi62 ( 1525137 )

      It is NOT ridesharing! Ridesharing is when you share a ride with someone. These are people who are being paid to bring you somewhere, but they don't plan on going there too!

      Ridesharing is perhaps carpooling to work. Or maybe a student hopping a ride with another student in college to go home for break.

      The idea is they hope if they keep repeating it people will think it's true. Like the War on Christmas, or the Kardashians being famous.

    • by eepok ( 545733 )

      Rideshare is a federally recognized term that refers to carpooling, vanpooling, transit, and even (counter-intuitively) biking and walking. It's generally used as an umbrella term to describe pretty much everything but driving alone in a car or taking a taxi.

      The Associated Press' Style Book has requested that all media outlets begin using the term "Ride-hailing" instead of Ridesharing to prevent confusion.

    • ++this. These are deliberate end-runs around existing taxi regulations. Claiming that it's "voluntary" and "crowd-sourced" is just a variation on companies calling people "contractors" (instead of "employees") to avoid giving them benefits. "If you tell a lie big enough and keep repeating it, people will eventually come to believe it." - Joseph Goebbels
  • Fark those clowns (Score:5, Interesting)

    by spywhere ( 824072 ) on Tuesday May 19, 2015 @10:00AM (#49725549)
    Licensed, legitimate cab companies run a gauntlet of state & local regulations before they can collect fares. Uber and Lyft bypass them, start operating, and then act surprised when their illegal operation using unlicensed, unvetted drivers run into trouble.

    In most places, the individual drivers and/or the company itself are required to have mercantile licenses... where are theirs?
    • by friedmud ( 512466 ) on Tuesday May 19, 2015 @10:36AM (#49725835)

      Licensed, legitimate, crab companies also use the high barrier of entry in many places to keep out competitors in order to artificially inflate prices. They lobby like crazy to make sure that things stay the way they have been.

      I think it's interesting that people take this stance against Uber. I thought "we" usually like the upstart guys that are overthrowing established monopolies...

      Don't cry for the cab companies...

    • Licensed, legitimate cab companies run a gauntlet of state & local regulations before they can collect fares. Uber and Lyft bypass them, start operating, and then act surprised when their illegal operation using unlicensed, unvetted drivers run into trouble.

      Indeed. Can we just stop calling it "ridesharing," too? You want to offer a coworker a ride in your car to work? That's "ridesharing." You want to say, "Can you chip in a little for gas and wear-and-tear on the car and such"? That's still "ridesharing."

      When you start offering these services to different strangers every day and trying to make a profit off of giving them rides, that's no longer "ridesharing" -- that's a taxi service.

      And there are good reasons why many regulations exist to protect bot

  • "Ridesharing" (Score:5, Insightful)

    by American AC in Paris ( 230456 ) on Tuesday May 19, 2015 @10:08AM (#49725617) Homepage

    If y'all are still telling yourselves that services like Uber and Lyft are "rideshares", you're not paying attention, and haven't been for a long time.

    Ridesharing suggests that people are sharing a ride from point A to point B--that is, they're both going that way, and thus are going to slug together to save gas/cost.

    Uber and Lyft are effectively taxi services that uses an app instead of a dispatcher. The driver seeks out a fare, starts the timer, drives the fare to their destination, and then seeks out another fare.

    The driver is not "sharing" anything, nor is the passenger. This is a taxi service.

  • Schizo (Score:4, Informative)

    by Jim Sadler ( 3430529 ) on Tuesday May 19, 2015 @10:19AM (#49725683)
    First the state sets up car pool lanes and asks people to share rides in the name of patriotism, monetary benefit and conservation. Then Uber comes along and creates a way to share a ride and the driver benefits a little bit as well. Then the state turns around and say oh no! This is rather like the politics of sex. Sex is sort of ok as long as one hides it away but God help anyone who charges money for sex. Going back to cars these laws have failed to take into account social media. Many people scour social media looking for people who commute to work and make deals to get a ride. I have a friend who goes to college about 100 miles from me. She takes classes three days a week. She slips the drivers $10 per day and she gets dropped off and picked up when they get off work. That is $30. a week for her and that $30. can help the driver pay for gas and enable the car pool lane use as well. And she has three different drivers just in case one is sick or on vacation or has a broken car. I see no moral difference between that and Uber and oddly where I live there is no way to travel county to county that is not massively inconvenient or expensive.
    • Re:Schizo (Score:4, Informative)

      by asylumx ( 881307 ) on Tuesday May 19, 2015 @10:57AM (#49726041)
      Yes, I tend to agree with you on this one and am a bit surprised by the anti-ridesharing stance here on slashdot today. That said there is a line between what you described and some of what appears to actually be happening, which is basically self-employed taxi services. In the aviation world we already have a rule that takes care of this problem. With your private pilot's license, you are allowed to carry passengers. Your passengers are allowed to chip in to pay for part of the flight, however the regulation states they can't pay more than their share and also they can't influence the decision to fly nor the plan. That is -- they can ride along and pay for half the gas and they can't tell the pilot where to take them. If you want to carry passengers for a profit, you have to pursue further certification.

      A regulation like this but for automobiles would take care of the problem legally. Then all you have to worry about is enforcement (and IMO that's where it really gets difficult).
      • which is basically self-employed taxi services.

        you are not "self employed" if you are being told what to do by a third party.

        If you want to carry passengers for a profit, you have to pursue further certification.

        yeah, that's the ticket. normal car insurance does not cover vehicles for hire. having a driver's license does not qualify you to help handicapped passengers in and out of your vehicle. maybe you are going to tell me that they don't have to take handicapped people? so uber sends a special vehicle? let's go back to this "self employed" thing you said earlier?

    • by dave420 ( 699308 )
      A unlicensed taxi is not "ridesharing", no matter how many times Uber and its ilk scream that's all they're doing. You not seeing the difference should inform you that maybe you need to read a bit more on the subject and see the precise differences, and the arguments made.
    • Then Uber comes along and creates a way to share a ride and the driver benefits a little bit as well.

      Uber drivers aren't sharing a damned thing. They're charging for a service. That's called doing business, and if you want to do business, you need to follow certain rules, just like anything else in life. You can't just jump up and say "nuh-uh, this is sharing!" when you're really requiring people to pay you before you "share" anything.

      If I open a gas station and call it a "fuel sharing service", does that mean that I get to bypass all those pesky rules and regulations for making sure my tanks don't leak in

    • The difference is that these arrangements are truly between individuals, who were going that way anyway. We have a car-pool board here at work, and I remember a "ride home" carpool bulletin board at college. That's sharing. Uber and Lyft claim that they're just a dating service, and if the "date" turns out to be a hooker it's not their fault - but they also handle the transactions, so it is.
    • by GuB-42 ( 2483988 )

      The difference : try to find an Uber driver who accepts to drive 200 miles for $10.
      Uber is not at all like ridesharing. With ridesharing, several people who go to the same place share the same car. It is good as it decrease traffic congestion, pollution, etc... With Uber, it is the same as when you are driving by yourself regarding pollution and congestion, the difference is that you are not the driver, i.e. it is a taxi service.
      Price is telling too. With ridesharing service, the driver usually get barely e

    • I have no idea how such a disingenuous argument got modded up. The idea of the HOV lane is that if people are planning to make the same trip, they can travel together and be more efficient. What your friend is doing is legitimately "ride sharing" but that's not what Uber and Lyft offer. Instead, in their model your friend would ride with somebody who has no interest in going there except for the money that she paid. The fare would be way more than $10. (Probably like $150) Taxis are allowed in many H
  • Uber ... is threatening to leave ... Oregon.

    Since we've lived without "pump your own" gas for this long, I figure lack of Uber "services" and reliance on old school taxis and mass transit will be fine with our retro/hipster kultur here in PDX.

    Actually, it's fine with me, too. I have a car. I know how to drive.

  • Not all bad (Score:4, Informative)

    by friedmud ( 512466 ) on Tuesday May 19, 2015 @10:33AM (#49725803)

    The summary makes it sound like all of the bills are AGAINST ride sharing... but that's not the case. For instance, in Massachusetts(which is highlighted in the summary) Uber is actively campaigning FOR the regulation bill.

    Why?

    Because the bill states once and for all that ride sharing is a legal activity. Yes, it puts some protections in place: but not much beyond what Uber already provides.

    As someone that uses Uber quite a bit (2-3 times per month) I welcome the new legislation as long as it allows Uber to continue to operate. Regulation is not all bad, as long as it is fair and reasonable.

    • Re:Not all bad (Score:5, Informative)

      by Nidi62 ( 1525137 ) on Tuesday May 19, 2015 @10:47AM (#49725957)

      The summary makes it sound like all of the bills are AGAINST ride sharing... but that's not the case. For instance, in Massachusetts(which is highlighted in the summary) Uber is actively campaigning FOR the regulation bill.

      Why?

      Because the bill states once and for all that ride sharing is a legal activity. Yes, it puts some protections in place: but not much beyond what Uber already provides.

      As someone that uses Uber quite a bit (2-3 times per month) I welcome the new legislation as long as it allows Uber to continue to operate. Regulation is not all bad, as long as it is fair and reasonable.

      If the driver of a vehicle is not going to the vicinity of your destination whether you are his passenger or not, then it is not ridesharing. It is a paid taxi service or a hired car. If Uber wants to call themselves a rideshare company, then require drivers to register a destination before they can see potential fares, allow them to only take fares going to the same vicinity as their registered destination, and do not allow them to pick up more fares for a new destination (they can drop off a fare along their route and pick up a new one along the same route however) until they have reached their original destination, checked in, and registered a new destination. There: now you are ridesharing.

      • by dave420 ( 699308 )
        Precisely. That is a perfect demonstration of the difference between ridesharing and a taxi service, even though both consist of a driver driving someone somewhere, and sometimes involving money changing hands.
      • That's a very strange sentiment, given your sig. You don't actually advocate that governments require that, do you?

        I think we can all agree that the majority of business on Uber or Lyft is not ridesharing under your definition. Drivers are going to destinations to pick up fares. So maybe the semantics are off on "ridesharing."

        But in terms of the demographics, I think a much higher proportion of Uber drivers are able to part time taxi in addition to going to school or another job. In that sense, th
        • by Nidi62 ( 1525137 )

          That's a very strange sentiment, given your sig. You don't actually advocate that governments require that, do you? I think we can all agree that the majority of business on Uber or Lyft is not ridesharing under your definition. Drivers are going to destinations to pick up fares. So maybe the semantics are off on "ridesharing." But in terms of the demographics, I think a much higher proportion of Uber drivers are able to part time taxi in addition to going to school or another job. In that sense, they are sharing their car and time with the Uber/Lyft pool, as opposed to a full time taxi driver with a bright yellow taxi cab. The fact that you're in another person's non-taxi vehicle makes it different enough that it merits it's own word. And I can't think of a name that's catchier and more apt than ridesharing. I'm open to suggestions, though.

          There is a term for that: a part-time job. If a rose by any other name smells just as sweet, then a cab by any other name smells just as....bad? In any case, once you are trying to derive an income from driving passengers around you are a taxi or a for-hire car, all of which have regulations in place. It's fine if you want to have a side job, a lot of people do. But the simple fact that it isn't your primary source of income or what you spend most of your time doing doesn't mean you get to ignore laws a

  • If a driver is driving 3 other people where he works to and from work, and collecting 10 bucks a week from each of them in exchange to help pay for gas, is that illegal too?
    • by dave420 ( 699308 )
      Of course not - that is actual ride sharing. The driver is going to their destination regardless of whether others will be driving with them. The money is not intended to be financial gain, but recovering losses. Can you not see the difference?
      • by mark-t ( 151149 )
        I can see the difference easily, of course... but matters of intent can get really hard to differentiate when it comes to law.... you might not have meant to be speeding, for instance, but if you do, you can still get a ticket despite your intentions.
        • but matters of intent can get really hard to differentiate when it comes to law....

          if you have an uber account and you are accepting rides then your intent is pretty clear

    • He would be going back and forth to work anyway. The only question I would have: is 10 bucks is a reasonable split of costs, or is the driver making a profit? (Including, is the driver sharing in the total cost?) If it's profiteering, then it's on or over the line. If it's sharing the cost, then it's sharing the ride. Uber and Lyft are directing drivers where they wouldn't have been going otherwise, charging fees clearly priced to make a profit. They're taxi dispatching services.
  • by fluffernutter ( 1411889 ) on Tuesday May 19, 2015 @11:11AM (#49726159)
    To people who have the simpleton view that the taxi companies are hiding behind these laws to protect their own income, consider for a moment what will happen to the marketplace if it is deregulated. First of all, the market can't be regulated for some and not for others. If any player is exempted from regulation at all then you might as well not have any, because the average customer just wants the cheapest price and doesn't really give a shit about regulation when they use a service. To get the lowest price, everyone must cut things like regular service and insurance coverage to compete. Now the customer expecting the lowest price will never think of these things when they get in the vehicle, but they benefit from them all the same every time they use the service.

    Before you get into an Uber car, will you check the brakes? Will you take a close look at the tires? Will you ask for proof of adequate insurance? Hell no. Therefore you will be riding in an unsafe car, and even worse, safer cars will be unaffordable and therefore nonexistent. Do you really want to be relying on an industry full of shitty cars, and shitty drivers? Do you want an industry where your driver is making pennies and stretched, forced to lie and cheat to keep his living going? Just wait until cars actually are automated. Then no one makes any money at all.

    There is no doubt that capitalism is a race to the bottom, we can try to hold it up a little longer.
  • There is a reason why NYC regulated taxis. Before they did, the streets were choked with them because the "free market" asked too many people to drive their taxis at the same time in the same place. Does NYC have the right to regulate its taxis? What about other places?

  • So in the end what will happen is a bunch of regulations will be passed. Some of them will be sensible stuff to protect consumers and probably stuff to protect all these new contractors (the drivers), and other people on the road. Some will be blatant pandering to the established taxi companies, which will use whatever political power they have to keep their status quo. And some stuff will be some new taxes or personal axes that the legislators have to grind. So basically democracy at work :) Just be s

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