A bill to crack down on illegal vehicles-for-hire will move forward with a few tweaks after several City Council members decided they liked the framework the city has in place.
“I like competition but it needs to be fair to everyone,” said council member Stephen Joost, whose bill stiffens penalties for unregulated for-hire transportation.
It was filed in response to UberX and Lyft, companies that connect riders to drivers using cell phone apps. Those drivers are fully insured and have background checks, above what the city requires, the companies have said. There hasn’t been verification by the city to this point — talks have been ongoing, even while the companies continue to operate.
Local taxi companies also have cried foul, saying there is an unfair competitive advantage because the app companies don’t have to follow the same rules that they do. They have to pay for city inspections on their vehicles and are required to carry commercial insurance, not personal insurance on their drivers.
Joost’s bill allows the Jacksonville Sheriff’s Office to help enforce city codes by impounding cars — and eventually forfeiture — for drivers found to be breaking city ordinances.
Jack Shad, the city’s parking officer, said UberX and Lyft need to provide specifics on what individual drivers and vehicles are insured. The companies advertise $1 million insurance policies for drivers who are logged in for service calls.
In the past 10 days or so, Lyft has sent the city its insurance policies, attorney and Lyft representative Steve Diebenow told the council members. To date, the company hasn’t heard back, he said.
Jason Teal, assistant general counsel, also has asked for an example within Florida of a successful insurance claim involving the companies.
Diebenow contended the ride-sharing companies have completely different business models that don’t fit under the city’s current ordinance code.
He instead pitched legislation that would create a section in the ordinance code for “Transportation Network Companies” that aren’t defined as vehicles-for-hire.
“This is a new playing field for the sharing economy,” Diebenow said.
After training, background checks from a private company and vehicle inspections on their personal cars, drivers can log in to pick up passengers who also use the app in search of a ride. Taxi companies also have an app to arrange rides.
UberX and Lyft drivers can’t pick up street passengers looking to hail a cab. They also aren’t able to pick up and drop off at the airport — Jacksonville Aviation Authority provides a contract to one traditional taxi vendor for the service.
Taxi companies lease vehicles to their drivers and carry commercial insurance, unlike the ride-sharing companies who allow drivers to use their personal vehicles.
When those drivers aren’t logged in, their personal insurance kicks in. Council members Monday questioned whether the personal drivers’ insurance allows such an arrangement.
Diebenow contended the companies offer ride-sharing, which company officials themselves have said for some time. But, council members say they are for-hire vehicles and should comply with local regulations currently on the books.
“We should set our standards,” Joost said. “If they don’t comply, they don’t drive.”
His legislation also would allow the city’s Office of Public Parking to join the sheriff’s office in enforcement efforts.
“I like competition, but it needs to be fair to everybody,” he said.
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