SUMMARY:
Smartphone applications such as Lyft, Uber and Sidecar (Transportation Network Companies or TNCs) are entering the San Antonio vehicle for hire industry by using social networks, smart phones, and GPS systems to connect drivers with passengers. On Wednesday, March 26, 2014, the Chief of Police issued a letter to Lyft Inc., telling them to cease and desist their activities until they were in full compliance with the requirements in Chapter 33 of the City Code of San Antonio.
BACKGROUND:
Chapter 33 of the City Code (Vehicles for Hire) establishes requirements designed to ensure the safety of ground transportation services within City limits. The requirements include:
* Mandatory vehicle inspections
* Vehicle age limits
* Permitting of companies, dispatchers, and drivers, with a cap on the number of permits issued
* Driver background checks
* Insurance requirements
* Maximum fare rates
These regulations help ensure travelers are provided a driver who has been properly vetted and a vehicle that has been properly inspected. The number of permits available for issuance to drivers is based on a study conducted in accordance with Sec. 33-927 of the City Code to determine adequate transportation coverage. Issuing too few permits reduces traveler convenience, while issuing too many can saturate the market and encourage illegal behavior.
The City of Austin, Texas has currently banned TNCs from operating. Dallas, Texas and Houston, Texas are both currently in discussions with stakeholders regarding current and proposed regulations of the same. California is currently at the forefront of this issue as the majority of TNCs originated there. In a decision issued on September 23, 2013, the California State Public Utilities Commission instituted new rules and regulations regarding TNCs and other means of ground transportation. This decision established requirements which address vehicle inspections, driver licensing and background checks, and comm...
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