WBEZ | ridesharing http://www.wbez.org/tags/ridesharing Latest from WBEZ Chicago Public Radio en Quinn vetoes 'Uber Bill,' some cry for override http://www.wbez.org/news/quinn-vetoes-uber-bill-some-cry-override-110700 <img typeof="foaf:Image" src="http://llnw.wbez.org/main-images/Rideshare.jpg" alt="" /><p><p>Supporters of limits to rideshare services in Illinois vowed Monday to push for an override of Governor Pat Quinn&rsquo;s veto of the so-called &ldquo;Uber Bill.&rdquo;</p><p>The <a href="http://www.wbez.org/news/illinois-senate-passes-ride-sharing-rules-110191" target="_blank">bill</a>, which would have affected popular technology platforms such as Uber and Lyft, would have forced rideshare companies to track more closely how many hours each of their drivers spent behind the wheel in the state, and to comply with safety standards similar to those required in the taxi industry. Supporters of the bill blasted Quinn&rsquo;s decision, saying it was motivated out of a concern for votes in the November gubernatorial election, rather than out of concern for public safety.</p><p>&ldquo;Governor Quinn is making the decision solely because of politics,&rdquo; said State Senator Martin Sandoval (D-11). &ldquo;Governor Quinn has decided (he&rsquo;s) not doing well in the polls, and based on his political advisors and lobbyists that he needs the &lsquo;lakefront liberals&rsquo; to come out in big numbers for him, and maybe that&rsquo;s what this is about.&rdquo;</p><p>Sandoval said he will push to have <a href="http://www.ilga.gov/legislation/fulltext.asp?DocName=&amp;SessionId=85&amp;GA=98&amp;DocTypeId=HB&amp;DocNum=4075&amp;GAID=12&amp;LegID=77989&amp;SpecSess=&amp;Session=" target="_blank">HB 4075/5331</a> on the General Assembly&rsquo;s override calendar in November. The Illinois House passed the measure 80-26 in June, and would require only 71 votes for an override. The Senate passed the measure 46-8, and would require only 36 to override.</p><p>But in his veto statement, Quinn said he objected to the bill&rsquo;s pre-emption of &ldquo;home rule,&rdquo; meaning that it would prohibit local municipalities from creating or enacting their own regulations for rideshare services. &ldquo;A statewide regulatory framework should only be considered when it is clear that it is not possible to address the problem at the local level,&rdquo; he wrote. &ldquo;At this point, there is not yet enough evidence to make a judgment about the effectiveness of local ordinances in dealing with the challenges of ridesharing technologies.&rdquo;</p><p>The bill would have required rideshare companies to closely track how many hours each of their drivers averaged on their platforms. Those who offered rides more than 36 hours every two weeks would have to comply with safety regulations similar to taxi drivers &mdash; namely, obtaining a public chauffeur&rsquo;s license, getting fingerprinted and submitting to a criminal background check. Additionally, the companies would have to provide commercial liability insurance identical to that which is required for taxis, for all its drivers -- regardless of how many hours they spend on the platform.</p><p>Several Chicago taxicab medallion owners joined Sandoval in protesting Quinn&rsquo;s veto, saying they believed Quinn&rsquo;s track record as a champion of consumer rights and safety would have led to a different outcome. But many believe that the issue has become politicized &mdash; even briefly becoming campaign trail grist by Quinn&rsquo;s Republican opponent Bruce Rauner &mdash; such that the governor had little choice but to veto it. They said they are confident that the General Assembly will override.</p><p>Ehsan Ghoreishi, a Chicago taxi driver of ten years and former medallion owner, said the state sanctioning of rideshare companies will ultimately be bad for labor. &ldquo;I&rsquo;m a taxi driver, I lease from big companies,&rdquo; he explained. &ldquo;I&rsquo;m sure there&rsquo;s some exploitation, and it&rsquo;s not a clean industry. But the question is: Do I prefer to work with a guy who owns 600 medallions? But I can reach him &mdash; he&rsquo;s a tangible person, I can call his office, I can go make a complaint. Or, do I want to be exploited by a guy that I cannot reach in any tangible fashion?&rdquo;</p><p>Indeed, changes that Uber and Lyft made to their fare and revenue structures this summer have alienated some of their most devoted drivers. Uber slashed its fares 15 percent, and started charging $10 each week for use of the data plan on iPhones that it issues to each driver. Chris Taylor, General Manager for Uber Chicago, said the price experiment has resulted in a greater number of people using their platform to get around. In other words, while drivers may earn less per ride, they&rsquo;re getting more rides.</p><p>&ldquo;We&rsquo;re confident that drivers on average will still have the ability to earn, on average, double minimum wage in Illinois in fares per hour,&rdquo; he said. Additionally, to offset the smaller earnings per ride, Taylor said Uber has negotiated discounts on gas, maintenance services and car washes for its drivers.</p><p>But Dan Burgess, who has driven for both Uber, Lyft, as well as a third competitor, Sidecar, said he and other drivers are definitely not earning double Illinois&rsquo; $8.25 minimum wage. &ldquo;If you take into account our car expenses for fuel and wear and tear, we&rsquo;re probably netting about $10 an hour,&rdquo; he said. &ldquo;It&rsquo;s just not a worthwhile experience for us anymore.&rdquo;</p><p>Meanwhile, relatively <a href="https://chicago.legistar.com/LegislationDetail.aspx?ID=1657453&amp;GUID=48EE4E9D-5D88-4001-8753-74FA1D4C47AF" target="_blank">light regulations</a> for the industry are set to take effect Tuesday in the City of Chicago. The rules would require the companies to apply for different classes of licenses, depending on how many hours their drivers, in aggregate, average. Companies whose drivers average fewer than 20 hours per week would be allowed to continue mostly as they already do. Both Uber and Lyft are working to gain this type of license.</p><p><em>Odette Yousef is WBEZ&rsquo;s North Side Bureau reporter. Follow her <a href="https://twitter.com/oyousef">@oyousef</a> and <a href="http://www.twitter.com/WBEZoutloud">@WBEZoutloud</a>.</em></p></p> Mon, 25 Aug 2014 18:26:00 -0500 http://www.wbez.org/news/quinn-vetoes-uber-bill-some-cry-override-110700 Secret recording shows Uber's efforts to poach Chicago cabbies http://www.wbez.org/news/secret-recording-shows-ubers-efforts-poach-chicago-cabbies-110072 <img typeof="foaf:Image" src="http://llnw.wbez.org/main-images/AP81700915726.jpg" alt="" /><p><p>For years, Chicago has struggled to recruit enough taxi drivers for the city. New competition from ridesharing companies is making that even harder. As the city looks to regulate those companies, it also seems to have abandoned its past policy of ensuring a robust corps of cabbies. Now, a secret audio recording reveals a newly aggressive push by the industry to persuade cabbies to become rideshare drivers.</p><p>WBEZ obtained the recording from a cab driver who attended a February information session at Uber offices in Chicago. The session was specifically to recruit taxi drivers to the company&rsquo;s popular ridesharing platform, called uberX.&nbsp; In it, an Uber representative pitches a room full of cabbies on the idea of dropping their cabs.</p><p>&ldquo;As Uber grows &ndash; this is why we&rsquo;re here today, is to teach you guys about the option that I think, quite frankly, is a little bit better for you guys in terms of your life and the cost,&rdquo; he told them.</p><p>UberX drivers get fewer fares than taxi drivers, but the company representative played up the advantages of switching from cab-driving to rideshare-driving. First, cab drivers wouldn&rsquo;t have to pay a weekly lease to use their vehicle anymore, because they&rsquo;d be able to use their personal cars. Taxi leases run anywhere from $400 to $700 a week.</p><p>Second, drivers could cash in on &ldquo;surge pricing&rdquo; &ndash; that&rsquo;s a term Uber uses for times of peak demand. The company hikes its fares during rush hour and when the weather&rsquo;s bad, sometimes charging up to seven times their normal rates. The representative told cab drivers in that session that if they got one taste of surge fares, they&rsquo;d want more.</p><p>&ldquo;It seems difficult to not drive a taxi in rush hour when you guys are taking a fare to the Loop &ndash; but just try uberX,&rdquo; he urged them, &ldquo;and you&rsquo;ll see that it might take a couple minutes longer to get that fare, but that fare will be at an increased rate.&rdquo;</p><p>WBEZ spoke with several taxi companies that say they are losing drivers to ridesharing. The question is, are fewer taxis good for the city?</p><p>The mayor&rsquo;s office wouldn&rsquo;t comment. Oddly, neither would the city&rsquo;s department of Business Affairs and Consumer Protection, which regulates the taxi industry. A spokeswoman said they don&rsquo;t care about driver numbers.</p><p>But they certainly did before. Last year, the department head was very vocal about a shortage of cab drivers.</p><p>&ldquo;We&rsquo;ve seen it dropping down over the past five or six years,&rdquo; said former Commissioner Rosemary Krimbel, at a Taxi Driver Recruitment Fair that the city co-hosted at Olive Harvey College last year. Krimbel said the city was short 2,000 cab drivers. She called that a problem, and said it was the city&rsquo;s job to fix it.</p><p>&ldquo;I think there&rsquo;s a solution,&rdquo; she said, &ldquo;And I hope to increase the number of drivers and support them.&rdquo;</p><p>But now the city says it has no role in keeping enough taxis on the road. Some say that&rsquo;s not a wise position for the city to take.</p><p>&ldquo;I definitely think it&rsquo;s very important for the tourism industry to have outstanding taxi service,&rdquo; said Charles Goeldner, a professor emeritus of tourism and marketing at the University of Colorado. Goeldner literally wrote the textbook on tourism, called &ldquo;Tourism: Principles, Practices, Philosophies.&rdquo;</p><p>Goeldner said cities that are serious about tourism actively support their taxi industries. He says taxi drivers are ambassadors for the places where they drive. They offer visitors knowledge and predictability.</p><p>&ldquo;There has to be a trust element,&rdquo; he said, &ldquo;and the taxi industry has always been regulated and licensed and has to meet certain requirements for cities.&rdquo;</p><p>Uber claims it holds its ridesharing drivers to high safety standards. It also talks a lot about promoting consumer choice in transportation. But if cab drivers heed Uber&rsquo;s call and switch to ridesharing &ndash; making rush hour commutes more expensive than ever &ndash; isn&rsquo;t that bad for consumers?</p><p>&ldquo;The goal is not to surge at rush hour,&rdquo; said Andrew MacDonald, Uber&rsquo;s Midwest Regional Director. &ldquo;But the pitch to drivers is &lsquo;Hey, right now we are undersupplied at rush hour, and so the opportunity is good to be on the Uber system.&rsquo;&rdquo;</p><p>MacDonald said as more people, cabbies or not, sign up to drive for uberX, prices won&rsquo;t surge as much. That might push some cab drivers back into the taxi industry.<br />But for now, it might be harder than ever to get a taxi in the Loop during rush hour.</p><p><em>Odette Yousef is WBEZ&rsquo;s North Side Bureau reporter. Follow her <a href="https://twitter.com/oyousef">@oyousef</a> and <a href="https://twitter.com/WBEZoutloud">@WBEZoutloud</a>.</em></p></p> Thu, 24 Apr 2014 17:38:00 -0500 http://www.wbez.org/news/secret-recording-shows-ubers-efforts-poach-chicago-cabbies-110072 Illinois House moves to rein in ridesharing http://www.wbez.org/news/illinois-house-moves-rein-ridesharing-110011 <img typeof="foaf:Image" src="http://llnw.wbez.org/main-images/Rideshare-legislation.jpg" alt="" /><p><p>Illinois lawmakers took a step Thursday toward imposing rules on popular ridesharing services that have come under particular scrutiny in the City of Chicago. Despite receiving thousands of e-mailed petitions overnight from supporters of Lyft and Sidecar urging them to vote against <a href="http://www.google.com/url?q=http%3A%2F%2Fwww.ilga.gov%2Flegislation%2Ffulltext.asp%3FDocName%3D09800HB4075ham003%26GA%3D98%26SessionId%3D85%26DocTypeId%3DHB%26LegID%3D77989%26DocNum%3D4075%26GAID%3D12%26Session%3D&amp;sa=D&amp;sntz=1&amp;usg=AFQjCNHJkILW6HuQSYOmvH2W08D1X1kv7w">House Bill 4075</a>, House legislators voted overwhelmingly (<a href="http://www.google.com/url?q=http%3A%2F%2Filga.gov%2Flegislation%2Fvotehistory%2F98%2Fhouse%2F09800HB4075_04102014_024000T.pdf&amp;sa=D&amp;sntz=1&amp;usg=AFQjCNGoWEKnNfNCts1Fl2_xQZJgosffqw">80-26</a>) in favor of regulations.</p><p>Uber, Lyft and Sidecar started offering smartphone apps in the Chicago area in the last two years, aimed at helping regular people use their personal vehicles for hire. The House bill, backed by representatives of Chicago&rsquo;s taxi industry, originally took a broad, restrictive approach, requiring those drivers to comply with many of the same rules as taxi drivers on issues of licensing and safety checks. The bill that ultimately passed was touted by its sponsor, Michael Zalewski (D-23), as a &ldquo;compromise bill,&rdquo; combining input from both the taxi industry and Uber.</p><p>&ldquo;Nothing in this bill is going to shut down these apps,&rdquo; Zalewski said, minutes before the roll call. &ldquo;We want them to thrive, we want them to do well. However, it&rsquo;s our duty to protect our constituents.&rdquo;</p><p>State lawmakers have, in recent weeks, raised red flags over <a href="http://www.google.com/url?q=http%3A%2F%2Fwww.wbez.org%2Fnews%2Fstate-legislators-probe-rideshare-insurance-109857&amp;sa=D&amp;sntz=1&amp;usg=AFQjCNGo3KvYNiEAn8hJorLnRP8GtOztGg">insurance concerns</a> with ridesharing services, as well as the propriety of entrusting background checks and drug testing of drivers to the private companies. The bill that House members passed imposes different requirements based on how much time drivers spend behind the wheel for the services.</p><p>Those who average fewer than eighteen hours per week would largely remain under the oversight of the private companies. But drivers who average more than eighteen hours per week would be subjected to many of the same rules and oversight as taxi drivers in Illinois. The bill would require them to obtain public chauffeur licenses, commercial registration plates for their vehicles, and fulfill inspection and age requirements set by the city or local government in which they operate.</p><p>Zalewski told WBEZ that Uber&rsquo;s lobbyist in Springfield, attorney Michael Kasper, supported the idea of bifurcating drivers into different regulatory categories depending on how much time they work. &ldquo;I can only negotiate with who Uber tells me to negotiate with,&rdquo; he said, &ldquo;and their representatives were willing to negotiate on this point.&rdquo;</p><p>But almost immediately after the bill passed, Uber denied that it was consulted in the crafting of the bill. &ldquo;Uber has not signed off on a proposal that bifurcates drivers,&rdquo; said Andrew MacDonald, Regional General Manager of Uber Midwest. Lyft issued a similar statement: &ldquo;Bifurcating drivers into two groups was not a compromise and we did not support this model in conversations with the bill sponsors.&rdquo;</p><p>&ldquo;That&rsquo;s an outright lie,&rdquo; said Pat Corrigan, a Principal at Yellow Group and representative of the Illinois Transportation Trade Association, which includes nearly all of Chicago&rsquo;s taxi companies. &ldquo;We talked to Uber representatives, including Michael Kasper, their lobbyist, over the weekend in an attempt to understand how we could satisfy their wishes.&rdquo; Kasper did not respond to an e-mail by posting time.</p><p>MacDonald argued that the bill will force drivers to choose whether they want to be full-time or part-time, and that it would make it difficult for the company to respond to fluctuations in demand.</p><p>&ldquo;Why are we putting in a threshold? Does it benefit consumers? Does it benefit drivers? No. It protects the taxi industry,&rdquo; he said. MacDonald said he did not know immediately what portion of the company&rsquo;s drivers in Chicago drive more than eighteen hours per week. He added that a more reasonable restriction would simply limit rideshare drivers to 12 hours per day, a rule that Chicago taxi drivers must follow.</p><p>Chicago officials, however, have been crafting similar changes to a city ordinance on ridesharing. According to Michael Negron, Chief of Policy for the Mayor&rsquo;s Office, a new proposal divides rideshare companies into two classes: those whose drivers average more than 20 hours a week, versus companies whose drivers average less. Companies with higher averages would have to ensure their drivers have public chauffeurs licenses and submit to background checks and drug tests done by the city.</p><p>Unlike the state legislation, the city will consider company-wide averages rather than individual driver averages. &ldquo;If we have to go and individually determine how much each driver is driving, that&rsquo;s a harder-to-enforce system, there&rsquo;s more opportunity for gaming, etc.,&rdquo; explained Negron.</p><p>The bill will go to the Illinois Senate after a two-week recess.&nbsp;</p><p><em><span id="docs-internal-guid-c1722b30-50d1-5e4e-753a-9f789cd52716">Odette Yousef is WBEZ&rsquo;s North Side Bureau reporter. Follow her </span><a href="https://twitter.com/oyousef">@oyousef</a> and <a href="https://twitter.com/WBEZoutloud">@WBEZoutloud</a>.</em></p></p> Fri, 11 Apr 2014 07:40:00 -0500 http://www.wbez.org/news/illinois-house-moves-rein-ridesharing-110011 Shadowy lobbyists influence rideshare debate http://www.wbez.org/news/shadowy-lobbyists-influence-rideshare-debate-109770 <img typeof="foaf:Image" src="http://llnw.wbez.org/main-images/Rideshare lawsuit_0.jpg" alt="" /><p><p>The fight over the future of ridesharing in Chicago is increasingly being waged through shadowy lobbyists. This has some aldermen concerned about how that could influence the current regulatory debate.</p><p>At a hearing at City Council&rsquo;s Joint Committee on Transportation and Finance on Monday, some noted that the lobbying activity on the issue appeared different from the usual at City Hall. They said they were disturbed by the apparent emergence of advocates for ride-sharing companies like Uber, Lyft and Sidecar, who have not identified their interests upfront.</p><p>&ldquo;I&rsquo;m concerned with the amount of lobbyists on this that we won&rsquo;t hear from today,&rdquo; said Ald. Bob Fioretti (2nd), after noting that he had been handed an unmarked packet of information on his way into the hearing, with no information about its source. &ldquo;I&rsquo;d like to see all the lobbyists come up and forward on who we&rsquo;re dealing with and what&rsquo;s happening in this controversy here.&rdquo;</p><p>Ridesharing services offer smartphone apps to connect people with cars to people who need rides. Drivers do not have public chauffeur licenses, and they use their personal vehicles. Lately, several cities in the country, including Chicago, have been considering whether, and how, to regulate these services to ensure public safety.</p><p>Earlier this month, city officials offered <a href="http://www.wbez.org/news/city-moves-regulate-rideshare-companies-109639" target="_blank">competing proposals</a> on rules for ridesharing. Almost immediately, media outlets (including WBEZ) began receiving phone calls and emails about the issue from a public relations firm that did not immediately identify its ties to the ridesharing industry.</p><p>A Chicago-based communications firm called Resolute Consulting has offered to connect reporters with community-based organizations in neighborhoods such as Little Village, Belmont-Cragin and Pilsen, who support ridesharing services. It did not initially disclose that its client is Uber, one of the technology companies behind a ridesharing app.</p><p>The consulting firm similarly publicized a press conference led by Alderman Joe Moreno (1st) just minutes before Monday&rsquo;s committee hearing on ridesharing rules. Moreno was joined by drivers and passengers of ridesharing services to voice support of &ldquo;reasonable regulations&rdquo; for the technologies.</p><p>&ldquo;Today is, I think, the difference between the Flintstones and the Jetsons,&rdquo; said Moreno. &ldquo;And we&rsquo;re here today to support the Jetsons.&rdquo;</p><p>Moreno said regulating ridesharing services under taxi rules, as proposed in a resolution by Aldermen Anthony Beale (9th) and Ed Burke (14th), would stifle innovation in Chicago. Other supporters at the press conference said they feel safe using ridesharing services, and that driving for these services helps them supplement low incomes.</p><p>They denied that a company had lobbied them to be at the press conference, with Moreno adding that riders, drivers and the industry are organizing on their own around the issue. But reporters were handed unlabeled, white folders containing reports about Uber, copies of letters written to the city on behalf of Uber, and other information highlighting troubles within the city&rsquo;s taxi industry. Resolute Consulting&rsquo;s name is nowhere cited in the packet, though a listed contact&rsquo;s name and number are associated with the company.</p><p>Additionally, all the riders and drivers present at the press conference disclosed, upon being asked, that they were only affiliated with Uber, rather than other ridesharing companies. Afterward, a consultant for Resolute told WBEZ that Uber had put out a request to its members to organize on behalf of limiting city regulations. Alderman Moreno admitted that he had met with an Uber lobbyist, whose name, he said, he could not recall. But he maintained that his advocacy on the issue was motivated by concerns he had heard from constituents who use the service.</p><p>&ldquo;There are lobbyists on both sides of this issue,&rdquo; Moreno offered at the committee hearing, in response to Fioretti&rsquo;s suggestion that ridesharing companies have been surreptitious in their lobbying effort. &ldquo;It&rsquo;s not just lobbyists that are on the rideshare side,&rdquo; he added, &ldquo;There&rsquo;s lobbyists that we all know that are on the taxi side of this, as well.&rdquo;</p><p>Interests aligned with the taxi industry have also mounted their own public campaign. In recent weeks, public relations firm Edelman has reached out to the media on behalf of client Taxi Magic, which produces an alternative transportation app. Taxi Magic partners with nine metro area cab companies, including Yellow Cab and Checker. Yellow is among several plaintiffs who recently filed a <a href="http://www.wbez.org/news/cab-livery-companies-sue-city-over-rideshare-companies-109655" target="_blank">federal lawsuit</a> against the City of Chicago, demanding that the city regulate ridesharing apps as it does their industry.</p><p>The coalition of companies behind the lawsuit have also hired former Daley administration lawyer, and City Hall insider, Mara Georges to represent their interests to aldermen in this debate. At Monday&rsquo;s committee hearing, Georges started off testimony by offering evidence to bolster Aldermen Burke and Beale&rsquo;s resolution to treat ridesharing companies the same as taxis.</p><p>In 2014, city data show the industry has four registered lobbyists at City Hall. Among ridesharing companies, Uber has three and Lyft has one. A single lobbyist represents taxi drivers&rsquo; interests.</p><p><em>Odette Yousef is WBEZ&rsquo;s North Side Bureau reporter. Follow her <a href="https://twitter.com/oyousef">@oyousef</a> and <a href="https://twitter.com/WBEZoutloud">@WBEZoutloud</a>.</em></p></p> Tue, 25 Feb 2014 17:04:00 -0600 http://www.wbez.org/news/shadowy-lobbyists-influence-rideshare-debate-109770 Cab, livery companies sue city over rideshare companies http://www.wbez.org/news/cab-livery-companies-sue-city-over-rideshare-companies-109655 <img typeof="foaf:Image" src="http://llnw.wbez.org/main-images/Rideshare lawsuit.jpg" alt="" /><p><p>A group of mostly taxi and livery companies have filed suit against the City of Chicago, claiming that the city has tolerated, and even promoted, &ldquo;unlawful transportation providers&rdquo; to undermine their industries. Their case focuses on technology companies Uber, Lyft and Sidecar, which offer smartphone apps that allow people who need rides to find people with cars, for a fare. The suit claims that the city has denied the plaintiffs equal protection under the law, by forcing them to abide by rules and regulations that have not been applied to the technology companies.</p><p>At the heart of their complaint is the assertion that the companies, which call their services &ldquo;ridesharing,&rdquo; are de facto cab companies.</p><p>&ldquo;This isn&rsquo;t ridesharing,&rdquo; said Michael Shakman, an attorney representing the plaintiffs. &ldquo;They sell services 24/7 to the general public, they charge by time and distance, and they&rsquo;re an on-demand service. They&rsquo;re exactly a taxi service, not a rideshare.&rdquo;</p><p>At a press conference Thursday, Shakman accused the city of allowing a taxi &ldquo;caste&rdquo; system to emerge, whereby Uber, Lyft and Sidecar are allowed to focus only on passengers who have credit cards, smartphones, and live in high-income neighborhoods.</p><p>&ldquo;They are not available at all to the disabled or to people who pay with cash,&rdquo; Shakman said. &ldquo;This taxi &lsquo;caste&rsquo; system excludes large portions of the population on racial, economic and disability grounds, and it thereby violates the Illinois Civil Rights Act.&rdquo;</p><p>Also joining the lawsuit is Brad Saul, President of Chicago Disability Transit, a non-profit that provides paratransit options for people with special needs. Saul said on the occasions he attempted to get a car from ridesharing companies, they did not have any that were able to accommodate his wheelchair.</p><p>&ldquo;As a platform, we don&rsquo;t force drivers to use it a certain way,&rdquo; said John Zimmer, co-founder of Lyft, &ldquo;but as a broad platform there&rsquo;s drivers who do support that.&rdquo; Zimmer said in many of the 20 markets where Lyft now operates, there are people who drive wheelchair-accessible vehicles.</p><p>But while Saul and other plaintiffs argue that the companies should have to serve people in all neighborhoods, and with disabilities, the lawsuit also dwells heavily on the economic injury they say they are suffering. Lyft, Sidecar, and Uber&rsquo;s ridesharing service, called uberX, typically are cheaper than taxis, although when demand is high, they use a surge-pricing model that can lead to steeper charges.</p><p>Additionally, there is a relatively low cost of entry for their drivers. Cabbies must have city-issued medallions, currently priced at roughly $350,000 each, as well as mandated insurance, worker&rsquo;s compensation, and vehicles that are no more than four years old. Taxi and livery drivers are also required to attend school and be licensed as public chauffeurs, neither of which are necessary for rideshare drivers.</p><p>Representatives from Lyft and Uber dispute the underlying characterization of their service as a taxi service &mdash; and argue that&rsquo;s why they shouldn&rsquo;t be regulated as cab and livery vehicles.</p><p>&ldquo;A taxi can hail someone from the street, and when you have something like a street hail, it creates different dynamics and different safety requirements,&rdquo; said Zimmer. &ldquo;You don&rsquo;t have choice over the company, you don&rsquo;t have information on the driver, you haven&rsquo;t agreed to a terms of service, and you have a lot less information. And with a service like Lyft, you&rsquo;re choosing to use Lyft, you see information about the driver, about the car, and there&rsquo;s many more differences.&rdquo;</p><p>The lawsuit comes a day after lines of disagreement surfaced at City Hall. Mayor Rahm Emanuel&rsquo;s office <a href="http://www.wbez.org/news/city-moves-regulate-rideshare-companies-109639">introduced an ordinance to create regulations</a> for the industry, designating a new category of transportation called &ldquo;Transportation Network Providers.&rdquo; The proposal would allow the ridesharing services to continue many of their operations, but would require them to register annually with the city, maintain minimum standards of general commercial and commercial vehicle liability insurance, pay the city&rsquo;s Ground Transportation Tax, and have drivers&rsquo; cars inspected annually.</p><p>Plaintiffs in the lawsuit say the proposal falls short, and they don&rsquo;t like the idea of a separate set of rules.</p><p>&ldquo;It&rsquo;s bad public policy to create a second taxi system designed for the elite who happen to be fortunate enough to live in neighborhoods where taxi drivers are willing to take them,&rdquo; said Shakman.</p><p>At the same City Council meeting, Aldermen Anthony Beale (9th) and Edward Burke (14th) proposed a <a href="https://chicago.legistar.com/View.ashx?M=F&amp;ID=2902650&amp;GUID=AE467792-6BF2-425E-85C7-6C05D0CFBD3C">resolution </a>calling for the Police Superintendent and Commissioner of Business Affairs and Consumer Protection to immediately apply the existing taxicab rules to the ridesharing services.</p><p>&ldquo;We need to make sure that the consumers are protected,&rdquo; said Beale, &ldquo;and so we need to take the steps on shutting them down and then work towards a solution to make sure they&rsquo;re regulated.&rdquo;</p><p>The resolution is not binding, but will go to a joint committee on Transportation and Finance, of which Beale and Burke are chairs, respectively. As such, they may ask enforcement officials to offer testimony as to why the city has not applied its rules on taxicabs and livery to the ridesharing services.</p><p>Representatives of Uber and Lyft say they expect there will be regulation of their service, and that they are in favor of measures to promote safety. But they say the push by cab and livery companies to have them adhere to the same rules that they do will stifle technological innovation.</p><p>&ldquo;Hundreds of thousands of Chicagoans rely on uberX precisely because it is a faster, safer, and cheaper way of getting around their city,&rdquo; wrote Andrew MacDonald, Midwest Regional Manager for Uber, in an e-mail. &ldquo;After years of neglecting Chicago drivers and passengers alike, the taxi industry has resorted to name-calling and frivolous lawsuits. While they spend time in court, we&#39;ll be working with Mayor Emmanuel (sic) to design a forward-looking regulatory regime that creates economic opportunity, prioritizes safety, and ensures access to the best, cheapest rides ever available in the city.&rdquo;</p><p><em>Odette Yousef is WBEZ&rsquo;s North Side Bureau reporter. Follow her <a href="https://twitter.com/oyousef">@oyousef</a> and <a href="https://twitter.com/WBEZoutloud">@WBEZoutloud</a>.</em></p></p> Thu, 06 Feb 2014 20:05:00 -0600 http://www.wbez.org/news/cab-livery-companies-sue-city-over-rideshare-companies-109655 Cabbies threaten to abandon Uber over changes http://www.wbez.org/news/cabbies-threaten-abandon-uber-over-changes-109625 <img typeof="foaf:Image" src="http://llnw.wbez.org/main-images/Uber changes.jpg" alt="" /><p><p>Once a darling of tech-savvy cab riders and taxi drivers looking for supplemental income, technology company Uber now faces mounting anger from some of those same drivers. The popular taxi-hailing service announced to cabbies via e-mail last week that, effective immediately, it was amending their contracts to include a $10 weekly charge for the data plan of the iPhones that the company issues them. The phones are currently mandatory for drivers that sign up with the service.</p><p>&ldquo;Connecting our partners with hundreds of riders each week does come with a cost,&rdquo; the email states. &ldquo;Since we launched in 2012, Uber has paid $10/week for the cost of data plan for every Chicago TAXI partner on our system, but at this time, this subsidy must end in order to encourage responsible iPhone use and prevent waste.&rdquo;</p><p>The message notes that the $10 deduction from drivers&rsquo; statements will begin this week, and that this policy has already been in effect since October for drivers in the company&rsquo;s livery service, UberBLACK.</p><p>&ldquo;I&rsquo;m going to return the phone,&rdquo; said Mohan Paudel, a Chicago cab driver who has used Uber for more than a year. Paudel and several other taxi drivers say that $10 per week is an unreasonably high charge in a business where the margins are already miniscule. Many are now thinking of dropping the service altogether, unhappy with the company&rsquo;s sudden, unilateral approach to changing the terms of their agreements.</p><p>&ldquo;I&rsquo;m definitely considering stopping working with Uber,&rdquo; said Peter Enger, a longtime Chicago taxi driver and Secretary for the United Taxi Drivers Community Council, a grassroots organization that works on labor issues in the industry.</p><p>&ldquo;I know a lot of cab drivers have gotten kind of fed up with their corporate practices. They&rsquo;re now no longer open for business, you cannot just go and consult with them except by appointment,&rdquo; he added. Enger and others complain that the company is difficult to reach with questions, and that often staff are discourteous when they respond to questions.</p><p>Andrew MacDonald, Uber&#39;s Midwest Regional General Manager, did not respond to questions from WBEZ about the change in policies, and did not follow up on a request for an interview.</p><p>But in the e-mail to taxi drivers, the company argues that the new charge for the data plan is reasonable because the service has allowed drivers to take home greater pay. &ldquo;We understand that every cent counts when it comes to your hard earned dollars that need to be spent on your food, housing, education, and your families,&rdquo; it states. &ldquo;Did you know that you earn as much as 7.5% more per Uber request compared to other fares paid via credit card?&rdquo;</p><p>&ldquo;But we&rsquo;re not making more money because we have to spend more time for the Uber customers,&rdquo; countered Paudel, &ldquo;because we have to go there and wait for two minutes, maybe sometimes ten minutes, and get the fare, which is&mdash; we&rsquo;re wasting a lot of time on that, too.&rdquo;</p><p>Other drivers agree that they typically have to wait longer when they arrive at a pickup location for customers that summon them through the Uber app. They also say they often waste time getting to Uber calls, only to have them cancelled at or before arrival. They say that Uber promises to pay them $5 for cancelled fares, but they rarely see that payment. Paudel says the new $10 charge, on top of these inconveniences, will add up to less weekly revenue than if he simply dropped Uber altogether.</p><p>The Uber notification also stated that drivers will be charged the weekly amount for the data plan regardless of whether they turn on the Uber device to take any calls in a week. Paudel said that&rsquo;s not fair if he decided to take a week off. He suggested that Uber instead increase the percentage that it takes from taxi drivers&rsquo; fares, currently 2.5 percent of the metered amount.</p><p>Still, it&rsquo;s not clear that taxi drivers abandoning the service would do much harm to the company. Since launching its taxi service in April 2012, the company also introduced its UberX ridesharing service, which matches passengers with non-taxi drivers. Many in the taxi industry fear that ridesharing services such as UberX, and competitors Lyft and Sidecar, directly threaten their business.</p><p>Last week, Uber announced that it was slashing its UberX fares&mdash;already lower than taxi meter rates&mdash;by 15 percent. The move follows accusations that the company engaged in price gouging on New Years Eve and in recent days with particularly inclement weather. UberX employs a surge pricing model when demand for rides peaks.</p><p><em>Odette Yousef is WBEZ&rsquo;s North Side Bureau reporter. Follow her <a href="http://twitter.com/oyousef" target="_blank">@oyousef</a> and <a href="http://twitter.com/WBEZoutloud" target="_blank">@WBEZoutloud</a>.</em></p></p> Mon, 03 Feb 2014 10:16:00 -0600 http://www.wbez.org/news/cabbies-threaten-abandon-uber-over-changes-109625