CHALLENGES FACED BY AIRPORTS TO REGULATE TRANSPORTATION NETWORK COMPANIES (TNC s)

Transcription

1 CHALLENGES FACED BY AIRPORTS TO REGULATE TRANSPORTATION NETWORK COMPANIES (TNC s) Matthew Krogh Attorney Minneapolis-St. Paul Metropolitan Airports Commission 2014 ACI Conference Dallas, Texas April 8, 2014

2 What is a Transportation Network Company (TNC)? An organization that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using their own personal vehicles. Includes: Lyft Sidecar Uber X Others

3 Who has regulation authority over TNC s? Airport or Port Authority County City State or State Agency Dual State and Local Authority

4 What parties should be regulated? The TNC The TNC Drivers Both None

5 Review existing taxi and commercial vehicle ordinances Do TNC s fall within the definition of a taxi in your existing taxi regulation? Generally TNC s do not want to be regulated like taxis. Is it fair to treat TNC s different than taxis? Should each TNC have a limit on the number of permitted TNC drivers? Should you prohibit taxis from dual operating as TNC s and taxis?

6 How does the Airport obtain revenue from TNC s? TNC s use Airport infrastructure and roads to make a profit. Who should pay the Airport? The TNC driver vs. the TNC What types of fee? Trip fee TNC Driver/vehicle permit fee Percentage of Airport derived revenue TNC Permit Fee How to track and audit TNC operations. Make sure TNC revenue is defined broadly. Should you regulate the TNC rate structures?

7 TNC Landside Operation Considerations Where do TNC s pick up, drop off, and wait? Taxi Lanes Commercial Vehicle Lanes General Public Pick up Lanes Cell Phone Lots How are the TNC vehicles identified by the passengers and the Airport? Should Trade Dress for TNC vehicles be required? How to notify passengers where the appropriate TNC pick up area is?

8 TNC Landside Operation Considerations (continued) Should the Airport require TNC s to operate a Geo-fence to manage the TNC s impact on Airport facilities? Prevent TNC s from loitering at the Airport waiting for a call. Should you regulate the number of drivers a TNC may have logged in to the dispatch system at once?

9 Passenger Safety Considerations Should background checks on TNC drivers be required? Who does the background check? What crimes will disqualify a TNC driver? Do TNC s perform drug and alcohol testing on its drivers? Do TNC s train their drivers and require English proficiency? Do TNC drivers need to get permitted directly by the Airport or allow the TNC s to selects its drivers without Airport involvement?

10 Passenger Safety Considerations (continued) Should TNC s have minimum vehicle standards? Age Type Fuel efficiency Handicap assessable Should TNC vehicles be subject to safety inspections? Who does the inspections? How often are they performed?

11 Insurance Issues Most states require all drivers to carry a minimum amount of auto liability insurance. Personal auto insurance policies likely will NOT cover liability arising from the operation of a business unless specific endorsement is obtained. TNC s provide a secondary insurance policy to cover their drivers liability. Are these TNC s policies valid in all states? When is the insurance active? Needs to be active whenever driver is logged into the dispatch system. See Uber case in CA. Do these TNC policies insure the driver, the passenger, or the vehicle? Or only provide insurance for third parties liabilities against the TNC?

12 Insurance Issues (continued) Airport Risks Property Damage, Public Safety. Should Airports seek indemnification and being a named insured on these TNC policies? What insurance limits should be required? TNC s have been reluctant to share copies of their insurance policies. Do Airports have a duty to make sure passengers using a TNC have insurance protection? Consider Airport vs. City differences

13 TNC s Terms of Service Concerns (Lyft Example) Indemnification Language Both Passengers and Drivers agree to indemnify Lyft from third party claims. How would Lyft use this provision if faced with a liability claim from a passenger or injured third party? Limitation of Liability - Lyft states that it has no responsibility for its drivers. Lyft states it is not liable for damages arising out of the use of Lyft services. Release - Users agree to release Lyft from claims related to another user (driver).

14 Final Thoughts Look to the regulations adopted by the other cites/airports for guidance on some of these issues. Monitor issues other airports or neighboring cites are having with TNC s. Be prepared - even if TNC s are not yet operating in your area because they are expanding quickly. Be prepared for reactions from the established taxi cab industry.