Connect What is a taxi and what is not? · alleged limo and shuttle rule breakers. Granted, it's...
Transcript of Connect What is a taxi and what is not? · alleged limo and shuttle rule breakers. Granted, it's...
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EDITORIAL
L.A. has no authority to regulate services such as Uber, Sidecar and Lyft. It should stop trying.
By The Times editorial board
October 23, 2013
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What is a taxi and what is not?
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Angelenos have more options for getting around town than
ever before, thanks to the arrival of services such as Uber,
Lyft and Sidecar, whose drivers can be summoned with a
smartphone app. But to some members of the City Council,
that's a bad thing because the services aren't regulated the
same way taxi companies are — by them, in other words. The
city doesn't need to throw its bureaucracy at these services,
however; the state Public Utilities Commission has adopted
rules that address the public's safety concerns without
forcing the upstarts to abandon innovative business models.
The main advocate for the city's power grab is Councilman
Paul Koretz, who argues that the new services compete
unfairly with city-regulated taxi services. Under state law,
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Ru th Gr a y son is a dr iv er for Ly ft . A dopted la st m on th , th e PUC's r eg u la t ion s for "tr a n spor ta t ion n etw or k
com pa n ies" a r e m odeled a fter its r u les for lim ou sin es, in clu din g m a n da tor y cr im in a l ba ckg r ou n d
ch ecks a n d tr a in in g pr og r a m s for dr iv er s, sa fety in spect ion s for ca r s a n d a zer o-toler a n ce policy for dr u g
a n d a lcoh ol u se. (Los A n g eles Tim es / October 2 2 , 2 01 3 )
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FROM AROUND THE WEB
however, cities have authority only over transportation
services whose drivers can be hailed in the street.
Prearranged rides, such as those offered by limousines and
shuttle buses, are under the PUC's purview. Uber, Lyft and
Sidecar clearly fall into the latter category; the companies
arrange and accept payment for rides exclusively through
their apps.
Adopted last month, the PUC's regulations for
"transportation network companies" such as Uber are
modeled after its rules for limousines, including mandatory
criminal background checks and training programs for
drivers, safety inspections for cars and a zero-tolerance
policy for drug and alcohol use. The commission also
required that the companies carry more comprehensive
liability insurance than limousine services do — and more
than taxis in Los Angeles must carry. But it brushed aside
pressure from taxi companies to treat the new ventures like
something they are not — cab companies — just because they
compete for some of the same customers.
SLIDE SHOW: 10 reasons to salute L.A.'s
transportation future
Koretz says the rules are meaningless because the
commission doesn't have the resources to enforce them. But
that argument is rebutted by the PUC's quarterly
enforcement reports, which show that it is issuing fines,
sending cease-and-desist notices, disconnecting unlicensed
services' phone lines and bringing criminal charges against
alleged limo and shuttle rule breakers.
Granted, it's strange that the state should regulate some
services and the city others, and cabbies may have a
legitimate gripe about an uneven regulatory playing field that
puts them at a disadvantage. But that's a problem for the
Legislature to solve by ending the division of regulatory
labor, or for the council to solve by lifting some of the
burdens it places on taxis.
The city certainly can cite drivers for the new services if they
pick up passengers who flag them down, in violation of local
taxi regulations (and the terms of the drivers' agreements
with Uber, Lyft or Sidecar). Beyond that, the city simply
doesn't have the authority to set rules for companies that
offer prearranged rides. The council should stop trying to do
so.
Copy r ig h t © 2 01 3 , Los A n g eles Tim es
123
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