After the death of State Rep. Havard’s bill that would have
provided statewide regulations for Transportation Network Companies (TNCs) like
Uber and Lyft, the Kenner City Council approved its own ordinance by a 6-1 vote
providing more regulations and fees on TNCs operating in Kenner and at
Armstrong International Airport. District 5 Councilman Dominick Impastato, who
is seeking to quit on his constituents and seek a promotion to JP Council before
he even completes his first term in office, opposed the ordinance.
While I am firmly a small government guy, I do believe that
TNCs need regulation, but since they operate throughout the state, they should
be regulated primarily through a statewide law. Having TNCs jump through hoops for
every Parish and Municipality that seeks to impose its own rules, regulations
and fees is anti-competitive.
If you’re an Uber/Lyft driver, or a Taxi driver, the rules
should be similar, if not identical, whether you live, pickup or drop off in
New Orleans, Kenner, or any other city.
As I wrote earlier, since Rep. Havard’s bill was essentially
written for him by TNCs, I was opposed to it. I am also strongly opposed to
Kenner’s ordinance as well, but not for the obvious reasons.
The new Kenner ordinance adds new fees and regulations and
doesn’t go nearly far enough when it comes to Public Safety – which should have
been the focus of the ordinance.
The new Kenner ordinance imposes
…a $.50 per trip fee for trips originating in Kenner.
…fees on trips to and from Kenner to the Airport and fees from the Airport to other destinations that are identical to Taxi fees (meaning consumers pay the same fee instead of possibly a lower fee for using a TNC).
…a $50 per driver Occupational License, since TNC drivers
are independent contractors (they pickup and drive when they want to versus
having a set work shift). TNCs are also required to pay a $10,000 fee.
The ordinance also requires that TNC drivers submit to
random background and drug testing, do not pickup passengers other than those
that use the APP, and have a valid Driver’s License (yes, out-of-state drivers are permitted which I believe is a mistake).
While the Occupational License (particularly for non-Kenner
residents who drive for Uber/Lyft) is a debatable question, the City of Kenner
has no place in imposing fees per passenger or assigning a cost to trips – that’s
for the marketplace (and consumers) to decide.
If TNCs like Uber and Lyft can provide a quality service at a price that consumers think is a good value, who is Kenner to determine that for consumers? If Uber/Lyft don't provide a good service and value, consumers won't use them.
Clearly, there needs to be a level playing field for TNCs,
airport shuttles, limo and taxi companies. ALL companies providing
point-to-point transportation of passengers or goods should either be regulated
similarly or unregulated, depending upon your viewpoint.
However, unlike Uber and Lyft, which would prefer to remain
unregulated (which benefits them), I would prefer that TNCs and their drivers
have the same regulations as Taxi companies and their drivers.
Regardless of your opinion, you will never convince me that
Uber/Lyft drivers aren’t unregulated taxi drivers. Simply using an app on a
smartphone or other device, instead of a placing a call on a dumb phone to a
taxi company, does not warrant enough of a distinction.
The issues with me and TNCs and Taxi Companies have always
centered around fairness and public safety.
The new Kenner ordinance does nothing to fix those issues.
In attempting to provide a level playing field for Taxi
Companies and TNCs, the Kenner ordinance goes backwards and provides more
onerous regulations on TNCs and their drivers.
Requiring a $50 Occupational License for a part-time job (for many drivers) is
ridiculous. TNC drivers should be licensed according to Taxi Drivers and should
have the same level of state Driver’s License that Taxi Drivers operate with.
TNC Drivers (or their companies) should also be required to have the same level
of insurance coverage that Taxi Drivers/Companies do.
Since a Commercial Driver’s License (CDL) could be suspended
for driving violations including DUI and would not be granted if a driver had
criminal violations in his/her past, I think requiring TNC drivers to have a
CDL would be prudent. Unfortunately, requiring a CDL wouldn’t result in any
money flowing into Kenner’s coffers, thus the reason for the $50 Occupational
License.
Requiring TNC drivers have a valid Louisiana Driver’s
License is something, but not taking the further step of mandating they also
drive Louisiana-registered vehicles subject to the same vehicle inspections as
Taxis, is a glaring omission.
Requiring random drug tests is also a good thing but, allowing
drivers to move to another app if they are suspended from one TNC due to a criminal
or driving violation also does not improve public safety.
Currently, if a TNC driver is using both Uber and Lyft to
procure passengers (as most do), if they are accused of dui and suspended by
one company they are not precluded from accepting fares from the other – or any
other competitor on the horizon.
The bottom line is that Kenner’s new ordinance is, in
reality, yet another money grab and bends over to protect the operations of
local Taxi Companies and local Taxi drivers. It does not provide a level
playing field, instead it tilts it in favor of Local versus National.
In their haste to protect the Local Taxi industry, the
Kenner City Council has proven again that it is “Business Friendly”. But only
if you are the right kind of business with the right ownership (local). Calling
yourself “Business Friendly” and actually being “Business Friendly” are
drastically different.
The Kenner City Council should not be in a position of
saving the local Taxi industry while killing TNCs. They weren’t elected to
choose who wins and loses in the “New Economy”. In fact, I’m not even sure they’re smart
enough to know what the “New Economy” is, let alone set rules and regulations
and pick winners and losers.
That’s not their job.
The Kenner ordinance also does not improve Public Safety.
On Nola.com, District 2 Councilman Mike Sigur was quick to
point out that the ordinance, which doesn’t take effect for 6 months, could be
amended at any time.
What that really means is, “We’re not smart enough to draft
an ordinance that does the right thing but, at least we can put the process in
motion to start collecting new fees and ripping off our constituents while we
work out the details.”
Unfortunately, that’s Kenner Government the Lyin’ Ben
Zahn/Mike Sigur way.
And that’s wrong on all counts.
