Regulation Of Uber, Lyft Coming Too Slowly, Taxi Executive Complains
The companies are flouting a rule that says they can’t drive customers to and from the airport, says Howard Higa of The Cab.
Howard Higa, president of聽聽taxi company, said Wednesday he has had enough of Hawaii politicians dillydallying when it comes to the regulation of app-based ride-hailing聽companies Lyft and Uber.
He was testifying at a Honolulu City Council Budget Committee meeting in favor of 聽that he said would place traditional taxi companies on an even playing field with the newcomers.
Higa accused state and city leaders聽of taking far too long to establish聽regulations for the ride-hailing companies, which he said establish their own vocabulary to circumvent the law.
At the state level, a Senate bill that would set insurance requirements for Lyft and Uber has been approved by the Legislature and聽.聽But several bills that would have established unique standards for companies like Uber and Lyft died 鈥斅犅爓ould have established a permitting system for such companies and聽聽would have regulated companies at the county level.
A City Council bill introduced earlier this year would have regulated the聽companies separately from taxi companies, but never made it to a committee hearing.
Higa suggested the latest City Council bill be altered to ban the companies’ surge-pricing practice, which increases ride fees according to demand聽鈥 he called it 鈥済ouging.鈥 At the other end of the price spectrum, he also complained about free ride offers, which he said taxi companies can鈥檛 afford to compete with.
Despite the fact the ride-hailing companies were mandated by the state Department of Transportation聽to stop driving customers to and from the airport聽in July 2014, Higa said, the practice continues.
鈥淚t鈥檚 total mockery on the system,” he said. “Total mockery what they did at the airport.”
Requiring standard fee rates and eliminating surge pricing were discussed as potential amendments to the bill.
Sheri Kajiwara, director of the city聽, told committee members that聽all rules should apply equally to taxi and ride-hailing companies
Following Kajiwara’s comments, Lyft Senior Public Policy Manager Timothy Burr Jr. told committee members聽he鈥檇 like to submit his own proposed amendments聽to the bill’s requirement that drivers pass a national background check.
鈥淲e share the goal at Lyft of ensuring safety as the top priority as we鈥檙e creating these regulations and ensuring safety for folks who want to participate in Lyft and ride sharing,鈥 Burr said.
In written testimony, Burr emphasized the app鈥檚 traffic-relieving and pollution-reducing benefits when customers link up with friends and split the cost on their phones.
Although an Uber representative submitted written testimony that indicated they intended to speak, no one from the company attended聽the meeting.
Uber鈥檚 written testimony suggested Honolulu adopt unique regulations for companies like Uber and Lyft instead of imposing the same rules used for聽taxis.
The business model is notably different, Uber said, pointing to statistics that show more than 60 percent of its Honolulu drivers work聽less than seven hours per week to supplement income. Uber also noted these drivers work beyond their 9-5 jobs and often during late-night hours, which it聽said has contributed to decreased impaired driving charges since its launch in Honolulu.
Uber argued its average driver, with other commitments, wouldn鈥檛 bother waiting for a lengthy certification process.
Under the bill, both taxi and ride-hailing companies would be required to keep a database of their drivers, which would include complaints. Fees for private transportation services would be set and re-evaluated every two years.
Drivers would have to obtain a certificate, which is already required of taxi drivers. The certificate, which must be renewed every two years, would ensure the driver has:
- A valid Hawaii鈥檚 driver鈥檚 license, registration, insurance, safety check and general excise tax license
- Passed a U.S. criminal background check for the past seven years
- Driven for at least a year
- A 鈥渟ufficient understanding鈥 of English
- Understanding of local traffic laws, streets and landmarks
- Been deemed physically and morally fit based on records
- Paid a $25 fee
Lyft and Uber already have many of those requirements, though many cities or states have their own additional requirements, according to .
Drivers who have committed more than three minor moving traffic violations in the past seven years would be prohibited from obtaining or renewing a driver鈥檚 certificate. More serious violations like driving under the influence, recklessly, or with a suspended/revoked license once in the past year would also prevent the state from issuing a certificate.
Anyone on the national sex offender registry or convicted in the past seven years of sex-related, drug-related or terroristic offenses would also be prohibited.
The certificate, along with a company logo in the lower passenger-side area of the windshield, would have to be prominently displayed.
Budget Committee Chair Ann Kobayashi said the committee was getting close to ironing out kinks in the bill and that it would be tweaked again before the next meeting July 20.
If it passes the committee, it would go before the full City Council.
