New ride-sharing services drive debate over safety, regulations into Lexington

sosborne@herald-leader.comJune 16, 2014 

  • If you go

    Urban City Council Public Safety meeting

    When: 1 p.m. June 24

    Where: Council Chambers, 200 E. Main St., Lexington

  • Price comparison

    Lyft

    Cost per mile: $1.90

    Cost per minute: 30 cents

    Pick-up fee: $1.20

    Minimum fare: $5

    Cancellation fee: $5

    Fares listed on Lyft.com

    uberX

    Base fare: $2.50

    Cost per mile: $1.40

    Cost per minute: 30 cents

    Minimum fare: $5

    Cancellation fee: $5

    Rides are free for uberX passengers in Lexington until June 26. Use the promotion code LEXFREE.

    Fares listed on Uber.com

    Yellow Cab of Lexington

    (largest taxi fleet in Lexington with more than 90 vehicles)

    Starting cab rate: $2.50

    Each additional mile: $2.50

    Additional fuel surcharges might supply

    Fares listed on Yellowcablexington.com

  • Cab regulations

    Lexington cab regulations include:

    Permit holder must pay an annual $120 fee for each vehicle.

    City police conduct a criminal records investigation of each applicant for a taxicab driver's permit. Police chief or his designee must approve applications.

    Every driver issued a permit has to post the permit where passengers can see it.

    Permits may be revoked for violating state and local laws.

    Periodic safety inspections are conducted. Vehicles must be kept clean.

    Every vehicle must be painted in accordance with the color scheme and insignia on file with the commissioner of public safety.

    All taxicabs must be equipped with taximeters.

    Rates have to be filed with the city and displayed in cabs.

    Holders of local taxicab permits shall maintain a central place of business and dispatch of taxicabs.

    Every driver shall maintain a daily manifest, upon which are recorded all trips made each day, showing time and place of origin, destination of each trip and amount of fare.

Tech-dependent ride-sharing services uberX and Lyft have arrived in Lexington, giving residents more options for hired transportation.

Also along for the ride: A thorny local and national debate over regulating companies built on digital advancements unimagined when local and state laws were passed.

UberX and Lyft connect those in need of a ride with drivers via a GPS-enabled smartphone app. Traditional taxi companies assert that the ride-sharing operations offer the same services without the same consumer protections and costly rules of the road.

"This is a good example of how technology tends to run way ahead of your statutes and your regulations," Kentucky Transportation Cabinet spokesman Chuck Wolfe said. "The law always seems to be playing catch-up with technology."

Uber Midwest general manager Pooneet Kant said many regulations for taxicabs were written about four decades ago, without the knowledge or expectation of widespread smartphone usage.

"I think there needs to be a new regulatory approach to dealing with companies that provide this technology platform that connects riders with drivers," Kant said. "We look forward to working with any officials to come up with common-sense regulations that recognize the difference in Uber's business model and ensure a permanent home for ride-sharing."

Lyft, with its pink mustaches adorning the front of participating cars, launched in Lexington on April 24 as part of an expansion that included Louisville and 22 other cities across the nation. UberX, the ride-sharing division of uber, began offering its services in Lexington on Friday.

As a result, Kentucky and Lexington leaders are grappling with what to do. Spokeswoman Susan Straub said Lexington Mayor Jim Gray was gathering information. The city council's public safety group will discuss the issue next week.

Meanwhile, ride-sharing drivers are not required to get expensive licenses and permits that are standard for cabbies. A Lyft and uberX driver fills out an application and passes background and driving-record checks. Lyft drivers use their own vehicles, which must be 2000 models or newer and in good working condition. Similarly, uberX drivers use their own cars, but the vehicles must be four-door 2004 models or newer with no physical damage.

"These are companies that are providing taxi services, but they claim they aren't actually taxi companies," said Dave Sutton, spokesperson for the "Who's Driving You?" campaign organized by the Taxicab, Limousine and Paratransit Association. "That way they can get out of the cost, like commercial insurance, which is probably eight times more expensive than regular insurance."

The lower startup costs might help uberX and Lyft, both founded and thriving in San Francisco's Silicon Valley, provide low-cost alternatives. UberX maintains on its website, Uber.com, that its rides are "almost 50 percent cheaper than taxies in some cities." Lyft advertises on its website, Lyft.com, that "Lyft generally costs about 30 percent less than a similar-length cab ride."

Sutton argues the service is more dangerous, and the campaign he runs aims to make the public aware of that danger.

Fourteen states and the District of Columbia have warned citizens about using ride-sharing operations because of insurance liability issues for drivers and passengers.

Kentucky hasn't issued a warning, but the state Department of Insurance is concerned about who is liable in an accident, spokeswoman Ronda Sloan said.

"We want to remind consumers that personal auto insurance does not cover losses that occur when the car is being used for commercial purposes," she said.

Uber and Lyft said they offer $1 million liability insurance policies covering drivers and passengers. But Uber has refused to cover passengers' medical bills, Sutton said. In September, two passengers suffered serious injuries after an uberX vehicle collided with another vehicle in San Francisco. Uber asserted the bills were the driver's responsibility.

"No one has ever seen a full certified copy of their (Uber) insurance, and there has been a number on instances where people have been killed and injured, and individuals have not been covered or received insurance," Sutton said.

In May, Lyft announced a partnership with insurance provider MetLife Auto & Home to protect Lyft's drivers and passengers.

Lexington taxi companies have complained about the competition, public safety commissioner Clay Mason said. But the companies couldn't be reached directly for comment.

"They do not feel like there is equity in how these folks are given the ability to pick up money by transporting people," Mason said.

In addition to the conditions of the vehicles used, Mason said, he was concerned about the quality of the drivers' background checks.

Sutton said drivers for Lyft and uberX are not subjected to FBI fingerprinted background checks, as taxi drivers are. On New Year's Eve in San Francisco, a 6-year-old girl was struck and killed by an uberX driver who had a reckless driving conviction.

"Our screening process is very rigorous," Lyft spokeswoman Katie Dally said.

The services have supporters. The California Public Utilities Commission recognized Lyft's efforts when the Golden State authorized peer-to-peer transportation in September. The commission noted that "Lyft has ... acknowledged that safety is not only a priority, but there should also be some overarching rules and regulations."

While the larger debate unfolds, ride shares have capitalized on the ease of reaching customers via their smartphones.

University of Kentucky senior Jared Sigler said he has used Lyft about 15 times. He said the simplicity was preferable to requesting a taxi.

"Its easier to use Lyft because it pinpoints your direction, and you don't have to call them," he said. "You just use the app and you're able to request Lyft exactly where you wanna go, and they arrive at your doorstep."

Michele Delbridge became a driver for Lyft after quitting her job at Xerox on a whim. The new undertaking has been lucrative; Delbridge said she has made a little more than $4,000 since she gave her first "lyft" May 9.

Delbridge gets a varied mix of customers, from college students in need of a sober ride after a night out to adults who want a ride home from work. She makes a point to keep her car clean and offers snacks and beverages she keeps in a Styrofoam cooler. She has TVs in her backseat and a selection of DVDs.

"Everybody loves my car," a white 2013 Dodge Charger, said Delbridge, who has a 4.97 rating out of 5 on the Lyft app. "With Lyft, they have that one-on-one kind of friendship and relationship when they get in our vehicles."

Delbridge said her customers were "shying away from taking a taxi unless they absolutely have to."

Sam Osborne: (859) 231-3308.Twitter: @samo430.

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