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Businesses that are transporting the public, for hire, in privately owned vehicles should be regulated equally under one ordinance. Coalition for Fair and Competitive Transportation The Taxi Industry wants to be regulated in the same ordinance as UberX and Lyft because a separate ordinance means special treatment. Taxi Companies, Drivers, and Owners do not want to be left behind and need to be able to compete with UberX and Lyft on a level playing field. How Minneapolis Taxi Regulation compares to the 4-18-14 special Proposed Ordinance for UberX and Lyft: The new proposal defines a “TNC” as a company that provides dispatch of prearranged transportation though a digital device. This is a distinction without a difference: Taxicabs also provide dispatch through apps, online, and by phone—all digital. “Prearranged” is defined in the proposal as transportation that is offered and accepted through a digital platform before transportation commences. Taxicabs also provide prearranged transportation by this definition, and also well in advance of the time the transportation commences. “TNC” drivers and “TNC” companies like Uber and Lyft make a profit on transporting customers. It is apparent that UberX and Lyft have designed their business model to avoid liability for drivers, insisting that they are not transportation carriers, and the Proposed Special Treatment reinforces and supports avoiding liability. The underlying theme of self-regulation for purported TNC companies will be difficult for the City to monitor, and the self-regulation will allow TNCs to arbitrarily discriminate in their selection of drivers and customers. Current Taxi Driver Requirements in Minneapolis 4-18 Ordinance Proposes Special Treatment for “TNC” Drivers All permissible rates, fees, and charges are set in the City Ordinance TNCs decide what their prices are and can apply “surge pricing” when they decide that demand is greater. Uber and Lyft are given complete control of the prices charged (Lyft charges $100-$250 for damages) Must not overcharge Rates set by private company, increased “surge pricing” is allowed May not operate a taxicab unless applicant files with the city a commercial insurance policy Driver only required to hold personal insurance which will not cover them operating commercially (for profit) Cabs from other cities may not pick up passengers in the City of Minneapolis (if Minneapolis Taxis pick up in Saint Paul, they have to be licensed there as well) No restrictions on who can pick up Minneapolis passengers Must pay tuition and take 6 classes for taxicab driver course, taught by city employees or an Special “driver training course” approved by License Official, likely administered by private

Comparing Taxi Regs and Proposed Ordinance

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Page 1: Comparing Taxi Regs and Proposed Ordinance

Businesses that are transporting the public, for hire, in privately owned vehicles should be regulated equally under one ordinance.

Coalition for Fair and Competitive Transportation

The Taxi Industry wants to be regulated in the same ordinance as UberX and Lyft because a separate ordinance means special treatment. Taxi Companies, Drivers, and Owners do not want to be left behind and need to be able to compete with UberX and Lyft on a level playing field. How Minneapolis Taxi Regulation compares to the 4-18-14 special Proposed Ordinance for UberX and Lyft: The new proposal defines a “TNC” as a company that provides dispatch of prearranged transportation though a digital device. This is a distinction without a difference:

• Taxicabs also provide dispatch through apps, online, and by phone—all digital. • “Prearranged” is defined in the proposal as transportation that is offered and accepted

through a digital platform before transportation commences. Taxicabs also provide prearranged transportation by this definition, and also well in advance of the time the transportation commences.

• “TNC” drivers and “TNC” companies like Uber and Lyft make a profit on transporting customers.

• It is apparent that UberX and Lyft have designed their business model to avoid liability for drivers, insisting that they are not transportation carriers, and the Proposed Special Treatment reinforces and supports avoiding liability.

• The underlying theme of self-regulation for purported TNC companies will be difficult for the City to monitor, and the self-regulation will allow TNCs to arbitrarily discriminate in their selection of drivers and customers.

Current Taxi Driver Requirements in Minneapolis

4-18 Ordinance Proposes Special Treatment for “TNC” Drivers

All permissible rates, fees, and charges are set in the City Ordinance

TNCs decide what their prices are and can apply “surge pricing” when they decide that demand is greater. Uber and Lyft are given complete control of the prices charged (Lyft charges $100-$250 for damages)

Must not overcharge Rates set by private company, increased “surge pricing” is allowed

May not operate a taxicab unless applicant files with the city a commercial insurance policy

Driver only required to hold personal insurance which will not cover them operating commercially (for profit)

Cabs from other cities may not pick up passengers in the City of Minneapolis (if Minneapolis Taxis pick up in Saint Paul, they have to be licensed there as well)

No restrictions on who can pick up Minneapolis passengers

Must pay tuition and take 6 classes for taxicab driver course, taught by city employees or an

Special “driver training course” approved by License Official, likely administered by private

Page 2: Comparing Taxi Regs and Proposed Ordinance

educational institution under contract with the city, and retake course if license lapses 1 year

company

Annual criminal background checks through the City

Background check annually, self-regulated by the private company

Each driver must provide a copy of his/her driving record annually

No more than 4 moving violations in the last 3 years and no more than 2 moving violations in the last year, self-regulated by the private company

Drivers must have one year’s driving experience as a licensed driver, verified by an affidavit signed by a reputable person

Must have one year’s driving experience as licensed driver, no verification required

Drivers cannot be in possession of or consume any alcoholic beverage or controlled substance within 4 hours of beginning a shift or while on duty

Private company must post a zero tolerance policy for drivers’ consumption of intoxicating substances, self-regulated and no enforcement requirement described

Drivers are prohibited from having an addiction to liquors or drugs

No prohibition

Drivers must operate taxi in accordance with the laws, statutes, ordinances and regulations of the state and city with due regard for the safety, convenience, and comfort of passengers and the general public

No requirement

Drivers must not operate a taxicab while using an electronic wireless communications device to write, sent or read a text based communication, even if hands-free

Use of electronics is part of the basic business model – accepting customers, notifying customers that they have arrived, etc

Must not operate a taxicab while using a wireless telephone, even if hands-free

No prohibition and drivers are provided a smart phone to conduct business

Must not drive a taxicab for more than 12 hours in any 24 hour period or more than 72 hours in any 7 day period.

No requirement

Must pass DOT exam No requirement Must maintain daily logs/trip sheets No requirement Must abide by dress code No requirement May not use cell phones/Bluetooth No prohibition – and drivers are provided a

smart phone to conduct business May not park at meters May park if they feed meter May not park on city residential streets May park anywhere No smoking allowed in taxi No prohibition Cannot take money up front Every customer’s credit card is pre-approved Waivers on street No waivers No cancellation fee Cancellation fee of $5 Minimum charge $5 Minimum charge $5.70 (increases with surge

pricing) Must be courteous with the public and city employees authorized to administer regulations

No requirement

Page 3: Comparing Taxi Regs and Proposed Ordinance

Must assist passengers to enter the vehicle and to load and unload luggage up to 50 lbs.

No requirement

No driver shall refuse to convey an orderly person or persons upon request anywhere in the city, no discrimination allowed

No requirement

May not pick up any other passengers without the consent of the first passenger or passengers

No requirement

Must accept and convey wheelchair users No requirement to transport wheelchair users Must keep a clean appearance, and wear long pants or Bermuda or postal-type shorts, a shirt with a collar or turtleneck, and shoes and socks or sandals with a strap that fastens over the instep or around the ankle. No holes, tears, or prominent stains in clothing. Sport jerseys only with city approval.

No requirement

Must not play radio or tape player without consent of passengers

No prohibition

Must inspect vehicle at beginning and end of shift and make entry recording inspection in trip sheet.

No requirement

Must inspect vehicle to make sure it is clean and must wash taxi once per week.

No requirement

Must inspect vehicle for lost articles, and driver is responsible to attempt to immediately return it. If not possible, notify dispatcher. Taxicab owner and service company must make diligent effort to locate the owner of the lost article for at least 30 days and maintain a log with a description of each lost article.

No requirement

Must not have in possession while operating a cab any firearm, knife with a blade in excess of 4 inches, or any assault weapon

No prohibition

Must not lock, disable, or refuse to unlock any taxicab door to detain a passenger

No prohibition

Cannot deceive any person as to a destination, route, or authorized rates or fare

No prohibition

Must not allow more passengers to occupy the vehicle than its normal seating capacity

No prohibition

Must not operate a taxicab in violation of the Minnesota Clean Indoor Air Act

No requirement

Must not pay any doorman, bellhop, or any other person in return for referral of passengers

No prohibition and currently a regular practice by Uber drivers

Must display taxi driver’s license on the dashboard of the vehicle

No display required on dashboard

Must have a Minnesota driver’s license May have a Minnesota or Wisconsin driver’s license

Page 4: Comparing Taxi Regs and Proposed Ordinance

Must have a taxi driver’s license issued by the City, must pay fee, and must renew annually.

No requirement, no fee, self-regulated by a private company

May not drive for a different cab company without obtaining a new license

No restriction

License may be revoked by the city for cause after a hearing

No license for the city to revoke

Taxi Vehicle Requirements 4-18 Ordinance Special Treatment for

“TNC” Vehicles May not operate a taxicab unless applicant files with the city a commercial insurance policy

Driver only required to hold personal insurance which will not cover them operating commercially

May not operate without license issued by City Self-regulated, only endorsed by TNC Must be painted with the common color scheme of the taxi service company

Only required to have some unique visual element that may be removed

Owners must pay $475 annually to maintain their license

No requirement

Taxicab license issued by the City No requirement Must display license number in multiple places so it is plainly visible at all times

No requirement

Licensing official must keep records of licenses with a register of the names of each person owning or operating a vehicle

Self-regulated by TNC, no requirement

Vehicle cannot be more than 5 years old Can be up to 10 years old Two inspections annually with a cost of $135 per inspection

Inspection only for initial endorsement by TNC, no fee, likely self-regulated

Must be examined and found to comply with 18 different points of inspection, including being inspected for mechanical compliance, being equipped with emergency triangles and a fire extinguisher, a Braille information card, seat belts, and cleanliness

Vehicle must not have rust or damage, special TNC vehicle inspection sheet

Mandatory safety equipment, including at least one of the following: digital camera security system, security shield, or GPS.

No requirement

Vehicles must be thoroughly washed and cleaned inside and out at least once a week

No requirement

Cabs from other cities may not pick up passengers in the City of Minneapolis

No prohibition

Charge must be changed to keep 6 years No requirement Replacement vehicle must be reauthorized and follow same criteria and fee must be paid

No requirement

Must carry commercial insurance Private insurance City is certificate holder on insurance No proof of insurance required Must have fire extinguisher and emergency triangle

No requirement

Page 5: Comparing Taxi Regs and Proposed Ordinance

Must have blind card in vehicle No requirement Inspector and police may search for compliance

No enforcement

Rates must be posted in cabs No requirement Taxi vehicle owners must meet background check and driving record check requirements

No requirement

Must report if there is a change in the ownership of the license or if there is a chance in the stockholders, officers or managers

No requirement

Specific procedure to sell a taxicab license No requirement Taxicab licenses may be revoked if the operator fails to pay a judgment for damage to property or persons while operating taxicab

No requirement

Owner of taxicab is liable for each and every violation of the chapter by their agent or employees

No requirement

Specific requirements to be able to lease a taxicab to a taxicab driver to operate

No requirement

Taxi Company Requirements 4-18 Ordinance Special Treatment for

“TNC” Companies Commercial insurance is specific to each vehicle to ensure full coverage in case of accident

Carry commercial automobile liability insurance and no-fault personal injury protection—(1) the accessibility to this form of insurance for small businesses is unclear (UberX and Lyft are insured by related entities), (2) no reliable support has been offered to demonstrate that this new approach to insuring will provide adequate coverage, (3) this insurance is only required to cover when the driver is “active on the TNC dispatch system,” protecting the TNC from liability and leaving a gap in coverage

10% of fleet must be wheelchair accessible, ADA compliant vehicles

No requirement

Must provide drivers with training on the special needs of persons with disabilities and on operating and maintaining vehicle accessible features

No requirement

Must report to the City the number of rides provided by each vehicle and the start and end locations, and the response to the request

Only required to track the number of requests for a wheelchair accessible vehicle, no requirement to transport wheelchair users, pay an undisclosed fee

Must pay $1100 annually to maintain their license

Fee not disclosed

Page 6: Comparing Taxi Regs and Proposed Ordinance

Must complete license application Special application not disclosed 24 hour dispatch Only dispatched via app, reliability

questionable Maintain records No requirement Annual performance review and inspections by the City

No requirement

Uniform paint color scheme for taxis and identifiable logo

Only required to have some unique visual element that may be removed

Must report the number of taxicabs in service in each 12 hour shift, and during each shift for each taxicab: the number of dispatched calls taken, the number of total fares, the total response time for each trip, the average time to respond, and the number of scheduled and unscheduled rides for wheelchair accessible service.

No requirement

Posted rates No requirement Maximum charges No requirement If the driver cannot return a lost article, taxicab owner and service company must make diligent effort to locate the owner of the lost article for at least 30 days and maintain a log with a description of each lost article.

No requirement

Service company office within 12 miles of Minneapolis City Hall

Same

Deemed agent for the service of all notices, orders, and other correspondence from the City to taxicab owners and drivers under the company’s color scheme

No requirement

Must take affirmative measures to ensure that taxi owners and drivers comply with regulations

No requirement

Responsible for the operation of an unlicensed cab or for unlicensed drivers

Only responsible when vehicles are active on dispatch system

Insure trip sheets are filed and maintained No requirement If a request for service is not answered within 15 minutes, dispatcher must order a taxicab to respond immediately

No requirement

Promptly respond to complaints by passengers No requirement Promptly respond to requests for information by licensing official

No requirement

Must provide city with documentation detailing specific required safety equipment

No requirement