Board Workshop: Taxicab/Uber/Lyft. January 6, 2015

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1 Board Workshop: Taxicab/Uber/Lyft January 6, 2015

2 Public Hearing Item 3 Explore the possibility of opening up the existing taxicab regulatory process Research trends and new developments in ride sharing approaches Investigate whether there is a need for additional taxicabs beyond the per capita ratio mandated by ordinance

3 Agenda How TNCs Operate Overview of Broward Regulations How TNCs legally operate in other jurisdictions What measures were taken to allow TNC Airport and Seaport Issues

4 Outcomes Board direction on next steps: Create a new category for transportation network companies (TNC)? Change the existing regulations? Expand an existing category to include transportation network companies? Timeframes Upcoming legislative session

5 How TNCs Operate Riders arrange transportation using an application (app) on their smartphone Download the TNC app to your smartphone Enter credit card information Request a ride Driver receives a notification with your GPS location Driver picks you up using his/her personal vehicle

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7 How TNCs Operate Rider and driver rate each other Driver receives approximately 75% to 80% of the fare TNC keeps the remaining 20% to 25% TNC provides Driver background checks Vehicle inspections Liability insurance coverage

8 Broward Regulations: Four Categories How Each Operate Taxicab On demand 8 or less passengers Marked vehicle Taximeter Limousine Prearranged 6-19 passengers Partition Stretched Luxury Sedan Prearranged 8 or less passengers Luxury Vehicle No Partition Van Prearranged; on demand during certain times at Seaport 9-19 passengers No partition

9 How TNCs Legally Operate in Some Other Jurisdictions: Four Five Categories Taxicab On demand Limousine Prearranged Luxury Sedan Prearranged TNC Private vehicle Prearranged through an app Van Prearranged; on demand during certain times at the Seaport

10 Broward Regulations: Five Key Areas 1. Fare controls 2. Licensing requirements Separate categories Each provides service in a different way 3. Minimum level of service i.e. No service refusal 4. Entry restrictions 5. Public safety requirements Vehicle inspections Background checks for drivers Proof of liability insurance coverage

11 TNC Model vs Five Key Areas Prefer the ability to charge less or more than a taxicab depending upon demand Amenable to licensing Internal policies for providing service Unlimited vehicles Self regulation preferred, but amenable to some oversight 1. Fare controls 2. Licensing requirements Separate categories 3. Minimum levels of service 4. Entry restrictions 5. Public safety Vehicle inspections Background checks Proof of insurance

12 Interim Operating Agreement Submitted by Uber Licensing No licensing. Uber requests to operate in accordance with terms of agreement until the County passes an ordinance. Insurance Uber offers to provide $1 million policy when driver has app operational and when driver accepts trip and continues during an accepted trip until a passenger exits car.

13 Interim Operating Agreement Submitted by Uber Background Uber requests to perform their own national criminal background checks including national sex offender database. Uber to verify checks annually. Driving history research reports with 3 or more moving violations or one major violation in the three year period prior to the check will not be allowed to drive for Uber.

14 Interim Operating Agreement Submitted by Uber Vehicle Requirements Vehicle age 10 years or less; Four-door minimum; Coupes, sedans or light-duty vehicles Vehicle Inspection Not addressed Fees Uber to submit proposal to address fees for airport and seaport;

15 Broward Regulations: Existing Categories vs the Five Key Areas 1. Fare controls 2. Licensing Requirements 4. Entry restrictions 5. Public safety 3. Minimum levels of service Vehicle inspections Background checks Proof of insurance

16 Key Area #1: Fare Controls TNC Model Proposed Consistent Price Rates reviewed every two years Current rate is $2.50 drop and $0.40 per 1/6 mile Historic rationale Pre-cellphone/internet, high informational costs to find the taxi with the lowest fare Taxicabs might price discriminate by charging unreasonably high fares to stranded riders or out of town visitors

17 Surge Pricing TNC Model Proposed Uber rates increase to get more cars on the road and ensure reliability during the busiest times. It s important to know that you ll always be notified in big, bold print if surge pricing is in effect. When rates are more than double, the surge confirmation screen also requires you to type in the specific surge multiplier to ensure you understand what rates to expect. Uber.com, December 23, 2014

18 TNC Model Proposed

19 Key Area #2: Licensing Requirements TNC Model Proposed Four separate categories Annual license fees Chauffer Registration - $64 Taxi - $200 Luxury Sedan - $200 Limousine - $300 Van - $300 Annual revenues - $796,444 Vehicle-For-Hire regulatory program operates on a full-cost recovery basis.

20 Key Area #3: Minimum Levels of Service TNC Model Proposed Prohibition on service refusal as long as passenger is orderly and has means to pay Found personal property must be returned to business office and held 60 days All motor vehicle operators must maintain a neat appearance Motor carrier shall keep accurate records subject to inspection by the division

21 Key Area #4: Entry Restrictions TNC Model Proposed Per capita ratio for Taxis 1 taxicab for every 2,000 residents 902 taxicabs Per capita ratio for Luxury Sedans 1 luxury sedan for every 4500 residents 400 luxury sedans Unlimited Limousines Unlimited Vans

22 Key Area #5: Public Safety TNC Model Proposed Minimum standards enforced by the County Vehicle inspections Yearly for the first 6 years of vehicle age Twice yearly thereafter Criminal background checks for drivers Every two years No automatic exclusions Proof of liability insurance coverage State minimums prevail for taxicabs $50,000 per person and $100,000 per occurrence for other vehicles less than 9 passenger capacity $500,000 per occurrence for 9-19 passenger capacity $500,000 of Commercial/General liability for Seaport

23 Key Area #5: Public Safety TNC Model Minimum Standards of Conduct Motor Carriers should routinely inspect their own vehicles for compliance with vehicle standards Code requires all motor carriers to keep vehicles clean and orderly at all times during service Motor Carriers should also conduct their own employment screenings and regular checks to ensure licensed chauffeurs comply with standards of conduct

24 How do TNC lawfully operate in other jurisdictions?

25 Typical TNC Regulatory Requirements A separate TNC license category Licensing drivers including background checks Minimum insurance Minimum vehicle standards and inspections Payment of regulatory fees Penalties for non compliance

26 What additional measures were taken to allow them to operate? TNCs have been authorized in numerous jurisdictions using a variety of different models Case studies: Houston, TX Seattle, WA Austin, TX Chicago, IL Washington, DC Orlando, FL

27 Houston, TX Licensing TNC licensing required (permit); Drivers licensed by City. TNC officers subject to criminal background check. Insurance TNC required to provide commercial automobile liability insurance policies in the amount of $1 million, to cover liability from any occurrence arising out of or caused by operation of transportation network from the time a driver is matched with and accepts a trip request until trip completion. Insurance in the minimum amounts specified by state Act must be in effect while driver logged into network even though not actively engaged in providing service.

28 Houston, TX Minimum level of service 3% of vehicles must be wheelchair accessible, and provide service to persons with disabilities; Task Force created to study all aspects of transportation needs for persons with disabilities, including certain specified areas of access. TNC must have a place of business within the City which is in compliance with applicable deed restrictions enforceable by the City. Driver shall not refuse to transport a passenger to a designated location within the City.

29 Houston, TX Background City shall perform background check on drivers and TNC officers. Driver history provided by driver at application. Driver fingerprinting required. Drivers must be authorized by City prior to work at airport. Vehicle Requirements Vehicle must have at least 2 doors, coupe, sedan or light-duty vehicle, and meet applicable Federal Motor Vehicle Safety Standards. Vehicles cannot be older than 7 years or have greater than 150,000 miles whichever comes first. Vehicle must display consistent and distinctive emblem.

30 Houston, TX Vehicle Inspection Vehicle inspected by City designated facility. Annual inspection required. Fees Permit fee 2% of annual gross receipts.

31 Houston TNC requirements vs BC Taxi, Luxury Sedan, Limo and Van Fare controls TNC Houston Requirements Licensing Requirements Minimum level of service Entry restrictions Public safety requirements by jurisdiction by provider Annual license for TNC TNC officers subject to criminal background check Prohibit service refusal Place of business within City 3% of vehicles wheelchair accessible Vehicle must be inspected at facility designated by City Vehicles cannot be older than 7 years or have greater than 150,000 miles Vehicle must display consistent and distinctive emblem. Driver must be licensed by City City conducts background checks Insurance verification

32 Seattle, WA Licensing TNC licensing required; Drivers licensed by City. TNC must maintain current registry of vehicle drivers and vehicles. Insurance Required for TNC and driver. $100,000/$300,000 per person/per accident while active on TNC dispatch system. Background City or approved company shall perform background check on drivers. Driver history obtained by City at application. Driver fingerprinting required.

33 Minimum level of service Seattle, WA Require that passengers can view a TNC driver s photo and the vehicle s license plate number on the device used to connect with the dispatch application before the trip is initiated Driver shall transport wheelchairs, guide dogs, groceries, packages or luggage of handicap passengers. TNC shall allow passengers to indicate whether they require a wheelchair-accessible vehicle. Maintain an office that is open and staffed from 9 a.m. until 5 p.m. on all business days. Maintain a mailing address and toll-free business and customer complaint telephone numbers that are answered during hours of operation.

34 Seattle, WA Vehicle Requirements Vehicle age 10 years or less. Fourdoor minimum. City issued vehicle decal with unique ID number. Vehicle Inspection Vehicle inspected by City approved mechanic. Annual inspection required. Vehicle service records must be kept by TNC. Fees TNC shall remit a per ride fee of $0.10, not to total greater than $525,000 per year.

35 Seattle TNC requirements vs BC Taxi, Luxury Sedan, Limo and Van Fare controls TNC Seattle Requirements Licensing Requirements Minimum level of service Entry restrictions Public safety requirements by jurisdiction by provider TNC licensing required TNC must maintain current registry of vehicle drivers and vehicles. Office staffed from 9 a.m. until 5 p.m. on all business days. Toll-free business number answered during hours of operation. Annual vehicle inspection by mechanic. Driver background check by County or third party County licenses drivers Insurance required Per ride fee of $0.10, not to total greater than $525,000 per year.

36 Austin, TX Licensing TNC agreement required (with City); Drivers licensed by City. Insurance TNC required to provide primary commercial automobile liability insurance with a minimum combined single limit of $1 million for each occurrence of bodily injury and property damage for accidents involving TNC vehicles in transit, from the time a driver accepts a trip request, during the accepted trip, until trip completion. Coverage also required in the amount of $30,000 death/personal injury per person, $60,000 per incident and $25,000 for property damage when driver is logged into TNC network until time driver accepts a trip.

37 Austin, TX Minimum level of service Maintain a web site Provide a 24-hour customer service phone number and address. Maintain an agent for service of process in the City. Set aside 10 cents from every ride and use funds to support riders requiring ADA accommodations. Accommodate service animals. Publicize their need for ADA vehicles and drivers to provide service to all passengers. An accessible service request indicator must be available on the app within three months of the TNC agreement. Surge pricing requires a fare estimator that enables riders to estimate the total surge pricing fare prior to requesting a ride.

38 Austin, TX Background City approved company shall perform background check on drivers. Driver history required at application. Vehicle Requirements None specified Vehicle Inspection Vehicle inspected in compliance with state requirements. Driver must carry proof of inspection. Fees Fees imposed to be set by separate ordinance.

39 Austin, TX TNC requirements vs BC Taxi, Luxury Sedan, Limo and Van Fare controls TNC Austin Requirements Licensing Requirements Minimum level of service Entry restrictions Public safety requirements TNC enters into a 1 year agreement with City. Stakeholder group to make recommendations on a pilot program. 24-hour phone number Maintain agent within City $0.10 of every fare to support riders requiring ADA accommodations Driver must be licensed by City Insurance verification by jurisdiction by provider

40 Chicago, IL Licensing TNC licensing required; Drivers registered with TNC. Insurance TNC required to provide commercial general and commercial automobile liability insurance policies, each in the amount of $1 million, to cover liability from any occurrence arising out of or caused by operation of transportation network. Background TNC shall perform background checks on drivers. Verify every three years. TNC and driver fingerprinting.

41 Chicago, IL Minimum level of service Pick up or discharge prohibited at airport or designated taxi stands or loading zones unless commissioner determines transportation can be done in while preserving security and public safety. Wheelchair-accessible emblems must be displayed. TNC must provide opportunity to indicate whether they require wheelchair accessible transportation and redirect said passengers to centralized dispatch system if they cannot. Records must be kept for number of accessible requests and include if service provided. Mayor authorized to establish a ground transportation Task Force to make recommendations on specified issues. TNC must have a place of business in the city.

42 Chicago, IL Vehicle Requirements Must seat less than 10 passengers; must have at least 2 doors, coupe, sedan or light-duty vehicle. Distinctive signage required. Vehicle Inspection TNC must verify vehicle inspected by City approved facility. Annual inspection required. TNC must maintain written documentation. Fees Annual fee for issuance or renewal of transportation network company license is $25,000 plus $25 for each transportation network driver registered with the company.

43 Chicago, IL TNC requirements vs BC Taxi, Fare controls Luxury Sedan, Limo and Van TNC Chicago Requirements Licensing Requirements Minimum level of service Entry restrictions Public safety requirements by jurisdiction by provider Annual license for TNC TNC must maintain a current registry of vehicle drivers. Licensee shall keep accurate records subject to inspection Any licensee shall have an affirmative duty to respond to requests for service Vehicle must be inspected by a city licensed motor vehicle repair shop or at a facility designated by the city TNC shall perform local and national criminal history background checks on its drivers. Verify checks every three years Insurance verification

44 Washington, DC Licensing TNC licensing required (register); Drivers registered with TNC. Insurance TNC required to provide primary liability insurance policy when driver has app operational and when driver accepts trip. 50K personal property per accident, 100K per accident, 25K for property damage. Background TNC shall perform background check on drivers. TNC shall perform driver history check. Verify every three years.

45 Washington, DC Minimum level of service Web site with a telephone number or electronic mail address and the telephone number or electronic mail address for taxi cab commission. Web site and mobile app accessible to the visually and hearing impaired. Refusal of service based upon protected class, including service animal, is prohibited. No additional charges on persons with disabilities nor requirement to be accompanied by an attendant. Driver must store passengers mobility equipment in the vehicle if capable of doing so. If not, passenger shall not be charged for trip cancellation. Refusal of service based upon location of passenger is prohibited. Rating of passenger on the basis of protected class is prohibited.

46 Washington, DC Vehicle Requirements Vehicle age 10 years or less. Fourdoor minimum. Vehicles shall display consistent and distinctive trade dress. Vehicles must comply with federal ADA regulations. Vehicle Inspection Vehicle inspected by City approved mechanic or state authorized inspection station. TNC to verify annual inspection. Fees 1% of all gross receipts that physically originate in DC.

47 Washington, DC TNC requirements vs BC Fare controls Taxi, Luxury Sedan, Limo and Van TNC Washington, DC Requirements Licensing Requirements Minimum level of service Entry restrictions Public safety requirements by jurisdiction by provider TNC registration required TNC must maintain current registry of vehicles and drivers. No refusal of service to passenger based on location or protected class. Website with telephone number. TNC performs national background check of drivers Verify every 3 years TNC required to provide liability insurance Vehicle age 10 years or less Licensed mechanic or inspection station must perform safety inspection Fee of 1% of all gross receipts originating in DC.

48 Orlando, FL Licensing TNC licensing required; Drivers licensed by City. Vehicles licensed by City. Fare Control Must charge at least as much as taxi fares. Passengers must be informed of the fare amount in advance. Insurance Required to provide $1 million automobile liability and property damage insurance combined single incident if transporting 7 or more passengers. Required to provide insurance at the minimum amount set forth by statute when transporting 6 or less passengers. May be self insured.

49 Orlando, FL Minimum level of service Service refusal for protected classes prohibited Driver dress code TNC must have local office, accessible by phone or in person during normal business hours.

50 Orlando, FL Background City shall perform background check on drivers. City shall perform driver history check. Vehicle Requirements Lettering requirements to identify company s identification. Vehicles must be passenger vehicles that seats at least 5 persons. Vehicle Inspection Vehicle inspected by ASE mechanic. Annual inspection required. Fees Permit fee is $250 per vehicle initially; $200 per vehicle thereafter.

51 Orlando TNC requirements vs BC Taxi, Fare controls Luxury Sedan, Limo and Van TNC Orlando Requirements Fare must be disclosed in advance Same minimum fare as taxi Licensing Requirements Minimum level of service Entry restrictions Public safety requirements by jurisdiction by provider Annual license for each vehicle Vehicle must be marked No refusal of service to passenger Local office accessible by phone or in person during business hours. Vehicle must be inspected by ASE mechanic Annual inspection certification submitted to Orlando Driver must be licensed by Orlando Insurance verification

52 Airport and Seaport Regulations typically require separate authorization to operate at Ports

53 Airport BCAD recommends that TNCs be incorporated into the regulations to ensure collection of trip fees. BCAD requests the Board authorize a TNC Service Agreement structured similarly to the current Taxicab Service Agreement administered by the Ground Transportation Management Company, SP Plus JV. Nashville International Airport became the first airport to officially recognize Uber and Lyft as of September of 2014

54 Airport Operations All vehicles for hire must obtain a separate airport decal ($50 - $150) Airport Trip Fees ($3 - $15) Permitted taxicabs pay a $3 trip fee per pick-up No fee for taxicab drop-off All other categories self report monthly trips and pay varying trip fees based on passenger capacity Fees paid for both pick-up and drop-off AVI system, currently in the validation phase, electronically records entry/exit from the Airport. BCAD will invoice for trips. Expected to be fully implemented in Spring 2015 Airport Revenues - $3,314,994 ELBP Revenue to support regulatory program - $125,360

55 Board Direction: Airport Permit for each TNC company? Require each TNC vehicle to have an AVI tag/transponder and register it with the Airport. Establish a TNC registration/decal fee of $50 (same as a taxi)? Per trip fee structure similar to prearranged (charge for drop off and pick-up)? Establish per trip fee surcharge of $.50 above the established trip fee for prearranged to off-set the difference of the decal fee ($50 vs. $150)?

56 Seaport Port Everglades is supportive of any additional capacity that may be available from TNCs to meet excess demand during days when there are three or more multi-day ships in port (91 in FY 2015) Seaport recommends TNCs meet standards equivalent to other commercial vehicles currently authorized by County Ordinance.

57 Seaport Operations All vehicles for hire must obtain a separate seaport authorization to operate at the Port Seaport Business Permit for each company- $450 first year, $250 annually thereafter Seaport Decal for each vehicle- $15 Seaport Revenues - $24,225 ELBP Revenue to support regulatory program- $250,759 No per trip fees Additional insurance requirements $500,000 general liability

58 Board Direction: Seaport Business Permit for each TNC? Separate decal for each TNC vehicle? Additional insurance requirements?

59 Industry Feedback TNCs not paying fees Maintain the current system TNCs should be required to participate in the current system using licensed vehicles and drivers The County should increase its enforcement capabilities, including adding the ability to impound vehicles

60 Industry Feedback Driver feedback divided Some drivers stated there is not enough demand so additional vehicles will make it even more difficult for them to earn a living Others would like to have the opportunity to drive for TNCs. Drivers with more than 25 years of experience petitioned the Board in 2014 stating that the opportunity to own a Taxicab Certificate was too limited

61 Board Direction: TNC Create a new category for transportation network companies (TNC)? Which of the five key areas to regulate? Expand an existing category to include transportation network companies? Timeframes

62 Leveling the Playing Field TNC Fare controls Licensing Requirements Minimum level of service Entry restrictions Public safety requirements by jurisdiction by provider

63 Licensing Houston, TX TNC licensing required (permit); Drivers licensed by City. TNC officers subject to criminal background check. Seattle, WA TNC licensing required; Drivers licensed by City. TNC must maintain current registry of vehicle drivers and vehicles. Austin, TX TNC agreement required (with City); Drivers licensed by City.

64 Licensing Chicago, IL TNC licensing required; Drivers registered with TNC. Washington, DC TNC licensing required (register); Drivers registered with TNC Orlando, FL TNC licensing required; Drivers licensed by City. Vehicles licensed by City.

65 Background Houston, TX City shall perform background check on drivers and TNC officers. Driver history provided by driver at application. Driver fingerprinting required. Drivers must be authorized by City prior to work at airport. Seattle, WA City or approved company shall perform background check on drivers. Driver history obtained by City at application. Driver fingerprinting required. Austin, TX City approved company shall perform background check on drivers. Driver history required at application.

66 Background Chicago, IL TNC shall perform background checks on drivers. Verify every three years. TNC and driver fingerprinting. Washington, DC TNC shall perform background check on drivers. TNC shall perform driver history check. Verify every three years. Orlando, FL City shall perform background check on drivers. City shall perform driver history check.

67 Vehicle Requirements Houston, TX Meet applicable Federal Motor Vehicle Safety Standards. Vehicles cannot be older than 7 years or have greater than 150,000 miles whichever comes first. Vehicle must display consistent and distinctive emblem. Seattle, WA Vehicle age 10 years or less. Four-door minimum. City issued vehicle decal with unique ID number. Austin, TX None Specified

68 Vehicle Requirements Chicago, IL Must seat less than 10 passengers; coupe, sedan or light-duty vehicle. Distinctive signage required. Washington, DC Vehicle age 10 years or less. Vehicles shall display consistent and distinctive trade dress. Vehicles must comply with federal ADA regulations. Orlando, FL Lettering requirements to identify company s identification. Vehicles must be passenger vehicles that seats at least 5 persons.

69 Vehicle Inspection Houston, TX Vehicle inspected by City designated facility. Annual inspection required. Seattle, WA Vehicle inspected by City approved mechanic. Annual inspection required. Vehicle service records must be kept by TNC. Austin, TX Vehicle inspected in compliance with state requirements. Driver must carry proof of inspection.

70 Vehicle Inspection Chicago, IL TNC must verify vehicle inspected by City approved facility. Annual inspection required. TNC must maintain written documentation. Washington, DC Vehicle inspected by City approved mechanic or state authorized inspection station. TNC to verify annual inspection. Orlando, FL Vehicle inspected by ASE mechanic. Annual inspection required.

71 Insurance Houston, TX TNC required to provide commercial automobile liability insurance policies in the amount of $1 million. Seattle, WA Required for TNC and driver. $100,000/$300,000 per person/per accident while active on TNC dispatch system. Austin, TX TNC required to provide commercial automobile liability insurance policies in the amount of $1 million.

72 Insurance Chicago, IL TNC required to provide commercial general and commercial automobile liability insurance policies, each in the amount of $1 million. Washington, DC TNC required to provide primary liability insurance policy when driver has app operational and when driver accepts trip. Orlando, FL Required to provide $1 million insurance if transporting 7 or more passengers. State minimum when transporting 6 or less passengers. May be self insured.

73 Fees Houston, TX Permit fee 2% of annual gross receipts. Seattle, WA TNC shall remit a per-ride fee of $0.10, not to total greater than $525,000 per year Austin, TX Fees imposed to be set by separate ordinance.

74 Fees Chicago, IL Annual fee for issuance or renewal of transportation network provider license is $25,000 plus $25 for each transportation network driver registered with the provider. Washington, DC 1% of all gross receipts that physically originate in DC. Orlando, FL Permit fee is $250 per vehicle initially; $200 per vehicle thereafter.

75 Other Washington DC Refusal of service based upon protected class, including service animal, is prohibited. Seattle, WA TNC shall allow passengers to indicate if they require wheelchair-accessible vehicle. Houston, TX 3% of vehicles must be wheelchair accessible, and provide service to persons with disabilities.

76 Other Chicago, IL TNC to provide opportunity to indicate if they require ADA transportation and redirect said passengers to centralized dispatch system if they cannot. Orlando, FL Service refusal for protected classes prohibited. Austin, TX Set aside 10 cents from every ride and use funds to support riders requiring ADA accommodations. Accommodate service animals.

77 Other Houston, TX TNC must have a place of business within the City which is in compliance with applicable deed restrictions enforceable by the City. Seattle, WA Maintain a mailing address and toll-free business and customer complaint telephone numbers that are answered during hours of operation, maintain office that is open and staffed on all business days.

78 Other Orlando, FL TNC must have local office, accessible by phone or in person during normal business hours. Austin, TX Maintain an agent for service of process in the City. Provide a 24-hour customer service phone number and address. Washington, DC Web site with a telephone number or electronic mail address and the telephone number or electronic mail address for taxi cab commission.

79 Other Washington DC Refusal of service based upon location of passenger is prohibited. Houston, TX Driver shall not refuse to transport a passenger to a designated location within the City. Washington, DC Driver must complete a vehicle-for-hire driver training course. Seattle, WA Require that passengers can view a TNC driver s photo and the vehicle s license plate number on the device used to connect with the dispatch application before the trip is initiated.