NLA Releases Paper Critical Of TNCs

Tom Halligan
Posted on August 20, 2014
MARLTON, N.J. — In response to the growth of Transportation Network Companies (TNCs), such as Uber and Lyft, the National Limousine Association (NLA) today released a position paper that outlines major concerns about TNCs and the ground transportation industry.

“The public and regulatory interaction with TNCs continues to suffer from misconceptions that affect the safety of the public, the consumer rights of passengers, the fair treatment of TNC drivers, and the fair application of laws towards bona fide operators of passenger transportation,” the paper stated.

Chief among TNC issues, the paper highlighted their lack of adequate liability insurance, disregard of regulations, legal and safety requirements, and false advertising of facts to the public who use TNC for-hire vehicles.

The NLA Board of Directors agreed at its June meeting, held in Washington, DC, to create a position paper to address the growing concerns of the business model of TNC companies. Board members were tasked with creating, defining and establishing the paper to address the problems posed by TNC companies. They also collaborated with Manesh Rath of Keller & Heckman, NLA’s legal counsel; Louie Perry of Cornerstone Government Affairs, the NLA lobbying firm; and NLA Executive Director Philip Jagiela.

The six-page paper can be read in full here: NLA TNC POSITION PAPER

Related Topics: limo tradeshows, limousine regulations, Lyft, National Limousine Association, NLA board of directors, NLA Legislative Committee, Philip Jagiela, regulatory enforcement, Safety & Insurance, Sidecar, state regulations, TNCs, Uber

Comments ( 3 )
  • Duane

     | about 6 years ago

    I spent a several months as an Uber driver in a major southern city to see if it would be a viable option. My ratings were consistently 5 stars and worked during peak hours to maximize opportunities. My experience found that their calculations for toll roads were too low. Yes, they were constantly modifying the "fences", but these calculations were never actual tolls incurred. Moreover, the rates for the passengers were good, but the payment to the drivers only felt good. When comparing the cost per mile driven and add the hours worked at a rate of double minimum wage, the driver was in a negative position. These drivers forget about the fact they will have to pay both sides of the employee's taxes since they are a contractor (1099). The weekly payment felt like you made good money, but factoring in a actual costs drivers were deceived into thinking it was a good deal. Safety? Well, how do you perform a background check on those who have been in the country just a few short months? Lastly, Uber customers were unable to request a specific driver. They had to gamble on their next ride unless the rider and I worked out a system that excluded Uber. Many major cities and airports require a permit with corresponding commercial insurance and business license in order to operate a transportation business. The vast majority of Uber drivers do not have these permits, licenses or insurance. These costs would further reduce the profitability of drivers. No tips (unless cash) can be added to the Uber app and 20% off the top being taken by Uber are red flags to the wise.

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