Time to regulate Uber, Lyft?

SAFETY FIRST: John Olinger, president and CEO of All Occasion Transportation, is seen with some of the cars in his fleet of vehicles. Olinger believes transportation network companies should be subject to regulation, citing their opposition to background checks on their drivers as a public-safety issue. / PBN PHOTO/MICHAEL SALERNO
SAFETY FIRST: John Olinger, president and CEO of All Occasion Transportation, is seen with some of the cars in his fleet of vehicles. Olinger believes transportation network companies should be subject to regulation, citing their opposition to background checks on their drivers as a public-safety issue. / PBN PHOTO/MICHAEL SALERNO

For Rep. John “Jay” G. Edwards, D-Tiverton, it’s a story of what’s fair, in attempting to corral what he considers “the wild, wild West” of unregulated transportation network companies.

TNCs, such as popular, app-based Uber and Lyft, break state law by not paying permit fees that pre-existing taxi and livery companies are subject to, and do not perform background checks on their drivers, according to Edwards.

Introduced in April, the House majority whip’s bill aims to combat what he called an “unfair advantage over traditional taxi services” through a comprehensive regulatory scheme.

“We need to make sure we get something through this year … to protect the safety and security of Rhode Islanders,” said Edwards. “[TNCs are] out there doing what they want. There are no regulations.”

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The bill would require TNCs operating in Rhode Island to pay an annual $15,000 permit fee to register 100 vehicles and incur a $150 fine for every additional vehicle. In addition, as of Sept. 1, 2016, the hackney operator’s license application will mandate first-time and renewing applicants to undergo a one-time national criminal records check to be completed by the state Bureau of Criminal Identification. The cost of the investigation will be incurred by the applicant. The bill and a similar Senate version are still pending in the General Assembly.

John Olinger, president and CEO of Warwick-based All Occasion Transportation, a luxury ground-transportation company with 50 cars and 80 employees, agrees reforms are necessary.

“[TNCs] are saying if you require them to get [background] checks on their drivers, they’re going to pull out of Rhode Island. That’s crazy. They’re not going to invest $35 in a [background] check to make sure their customers are safe … What does that tell you about their business model?” he said.

Olinger, however, thinks TNCs have forced some traditional taxi and livery companies, including his own, to step up their game.

“A rising tide floats all boats and they’ve raised certain operating standards in this industry,” in particular with regard to technological advancement, he said.

“TNCs have … pushed all taxi and livery companies to evolve and add new technological offerings to their service,” he said.

The incorporation of new technology has allowed passengers to access information on the identity of the chauffeur, schedule and cancel rides online, and keep payment information on record for easier transaction processes.

All Occasion Transportation, wanting to stay up to date, now includes a link to a GPS map customers can use to track the location of their vehicle.

Edwards and Olinger, however, say they have heard complaints of TNCs refusing to pick up customers based on their location.

“In the majority of the state, without taxi cabs you have no mode of transportation. An Uber or other TNC is not going to come pick you up in Tiverton. It’s not going to happen,” said Edwards, who served on a special joint legislative commission that studied the local impact of TNCs.

Olinger added: “If the TNCs put taxi companies out of business, no one will pick up the passengers in the outlying sections of Rhode Island, think Little Compton. Taxi companies have to pick up those fares; TNCs do not because it is too far away for them to travel.”

But Carlie Waibel, an Uber spokeswoman, said the company prides itself on providing just that – transportation options in the most rural areas.

“It’s common knowledge that in areas where there’s no public transit Uber has filled a void … eliminating that problem and improving transportation opportunities,” she said.

Waibel added the company supports some regulation, but asserts Uber is more economically helpful than hurtful. According to the company, Rhode Island Uber drivers hail from every city and town in the state, with the exception of Block Island.

More than “31 states have passed regulations that support Uber’s business model; Rhode Island could be the 32nd state that would allow Uber to grow and provide economic opportunities and improve transportation options,” she said. •

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