DEPARTMENT: Police
DEPARTMENT HEAD: William P. McManus
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Transportation Network Companies and Chapter 33
SUMMARY:
Transportation Network Companies (TNC) entered the San Antonio vehicle for hire market in March of this year. They continue to operate although Cease and Desist letters were issued by Chief McManus. The nature of the vehicle for hire industry has changed with the introduction of the TNCs and Chapter 33 of the City Code requires revision to keep pace with the change in the industry.
BACKGROUND INFORMATION:
Transportation Network Companies (TNC) have developed applications that match drivers with passengers who pay the driver, through the app, with a credit card. The TNC collects the fares, keeps a percentage and forwards the rest to the driver. The two TNCs currently operating in San Antonio are Lyft and Uber and although their business models differ, they share similar processes for on-boarding drivers, inspecting vehicles, providing training, and insuring against accidents.
The Police Department has briefed the Public Safety Committee on four separate occasions, providing an overview of the TNCs business model, the regulations contained in Chapter 33, and the traditional industry's position regarding revising Chapter 33. The Department also held meetings with the Transportation Advisory Board (TAB) and ground transportation industry stakeholders throughout the months April, June, and July. During these meetings, the local industry remained adamant that they were opposed to any revisions to Chapter 33 although both Lyft and Uber expressed a willingness to work towards revising Chapter 33 to fit their business model.
Staff also researched other cities' and states' ordinances and processes. California and Colorado have passed state regulations for TNCs. Seattle, WA; Minneapolis, MN; Chicago, IL; Baton Rouge, LA; Tulsa, OK; Austin and Houston, TX, and the Dist...
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