Sidecar, Onetime Uber Competitor, to Shut Down New Year's Eve
Sidecar to Operate at San Francisco Airport
San Francisco District Attorney Threatens Action Against Uber, Lyft, Sidecar
Taxi Drivers Want San Francisco to Crack Down on 'Ride Share' Insurance
Tip or Bribe? Taxi Drivers Say Illegal Payments to Dispatchers Are Routine
Will 'Ride Sharing' Kill San Francisco's Taxi Industry?
Lyft, Uber, Sidecar Get Official Go-Ahead to Operate in California
Ride-Share Companies Hit With Lawsuits From Their Drivers
How the CPUC's New Rules Will Affect Ride-sharing Startups
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Breakdown","link":"/podcasts/politicalbreakdown"}]},{"key":"menu4","items":[{"name":"Live Radio","link":"/radio","type":"title"},{"name":"TV","link":"/tv","type":"title"},{"name":"Events","link":"/events","type":"title"},{"name":"For Educators","link":"/education","type":"title"},{"name":"Support KQED","link":"/support","type":"title"},{"name":"About","link":"/about","type":"title"},{"name":"Help Center","link":"https://kqed-helpcenter.kqed.org/s","type":"title"}]}]},"pagesReducer":{},"postsReducer":{"stream_live":{"type":"live","id":"stream_live","audioUrl":"https://streams.kqed.org/kqedradio","title":"Live Stream","excerpt":"Live Stream information currently unavailable.","link":"/radio","featImg":"","label":{"name":"KQED Live","link":"/"}},"stream_kqedNewscast":{"type":"posts","id":"stream_kqedNewscast","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/newscast.mp3?_=1","title":"KQED Newscast","featImg":"","label":{"name":"88.5 FM","link":"/"}},"news_10813504":{"type":"posts","id":"news_10813504","meta":{"index":"posts_1591205157","site":"news","id":"10813504","score":null,"sort":[1451422417000]},"guestAuthors":[],"slug":"sidecar-once-an-uber-competitor-ends-its-ride-service","title":"Sidecar, Onetime Uber Competitor, to Shut Down New Year's Eve","publishDate":1451422417,"format":"standard","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>It's the end of the road for Sidecar. The ride-service company's co-founders announced today it would cease operations on New Year's Eve.\u003c/p>\n\u003cp>At one point, Sidecar -- along with Uber and Lyft -- was one of the Big 3 ride-hailing firms. When we \u003ca href=\"http://ww2.kqed.org/news/2013/11/07/taxis-lyft-ride-service-war-on-streets-of-san-francisco\" target=\"_blank\">first started covering the industry\u003c/a> in November 2013, we spoke to a driver who said he made an average of $30 an hour driving 20-25 hours per week for the company.\u003c/p>\n\u003cp>“I just had my 1,000th ride this year and I love it,” he said.\u003c/p>\n\u003cp>But the good times didn't last. In 2014 I talked to one driver who simultaneously worked for all three companies; he said he received nary a customer from Sidecar over a weeklong period. Eventually, the media stopped mentioning the company alongside Uber and Lyft.\u003c/p>\n\u003cp>Today Sidecar co-founders Sunil Paul and Jahan Khanna said in a \u003ca href=\"https://medium.com/@SunilPaul/so-long-sidecar-and-thanks-74c8a0955064#.nfaz9z4oh\" target=\"_blank\">post on Medium\u003c/a> that the company would end both its ride and \u003ca href=\"https://www.side.cr/delivery/\" target=\"_blank\">delivery service\u003c/a>, the latter of which it \u003ca href=\"http://www.geekwire.com/2015/packages-people-sidecar-launches-day-delivery-service-partners-eat24/\" target=\"_blank\">launched in February\u003c/a>.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\"Today is a turning point for Sidecar as we prepare to end our ride and delivery service so we can work on strategic alternatives and lay the groundwork for the next big thing,\" Paul and Khanna wrote. \"We will cease ride and delivery operations at 2 p.m. Pacific Time, December 31.\"\u003c/p>\n\u003cp>Perhaps it's an indication of just how little business Sidecar was doing that it will terminate its ride-service hours before the rush of New Year's Eve, perhaps the biggest transportation-for-hire night of the year.\u003c/p>\n\u003cp>Paul and Khanna did not specify what \"the next big thing\" might be.\u003c/p>\n\u003cp>\"This is the end of the road for the Sidecar ride and delivery service,\" they wrote, \"but it’s by no means the end of the journey for the company.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>After beta testing in San Francisco in 2011, Sidecar formally \u003ca href=\"https://www.side.cr/sidecar-connects-drivers-and-passengers-one-ride-at-a-time/\" target=\"_blank\">launched in 2012\u003c/a>, portraying itself as \"the first on-demand rideshare community.\"\u003c/p>\n\n","blocks":[],"excerpt":"Once one of the Big 3 ride-service companies, Sidecar faltered in recent years as it lost ground to Uber and Lyft. ","status":"publish","parent":0,"modified":1452823314,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":12,"wordCount":341},"headData":{"title":"Sidecar, Onetime Uber Competitor, to Shut Down New Year's Eve | KQED","description":"Once one of the Big 3 ride-service companies, Sidecar faltered in recent years as it lost ground to Uber and Lyft. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"10813504 http://ww2.kqed.org/news/?p=10813504","disqusUrl":"https://ww2.kqed.org/news/2015/12/29/sidecar-once-an-uber-competitor-ends-its-ride-service/","disqusTitle":"Sidecar, Onetime Uber Competitor, to Shut Down New Year's Eve","nprStoryId":"463123041","path":"/news/10813504/sidecar-once-an-uber-competitor-ends-its-ride-service","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>It's the end of the road for Sidecar. The ride-service company's co-founders announced today it would cease operations on New Year's Eve.\u003c/p>\n\u003cp>At one point, Sidecar -- along with Uber and Lyft -- was one of the Big 3 ride-hailing firms. When we \u003ca href=\"http://ww2.kqed.org/news/2013/11/07/taxis-lyft-ride-service-war-on-streets-of-san-francisco\" target=\"_blank\">first started covering the industry\u003c/a> in November 2013, we spoke to a driver who said he made an average of $30 an hour driving 20-25 hours per week for the company.\u003c/p>\n\u003cp>“I just had my 1,000th ride this year and I love it,” he said.\u003c/p>\n\u003cp>But the good times didn't last. In 2014 I talked to one driver who simultaneously worked for all three companies; he said he received nary a customer from Sidecar over a weeklong period. Eventually, the media stopped mentioning the company alongside Uber and Lyft.\u003c/p>\n\u003cp>Today Sidecar co-founders Sunil Paul and Jahan Khanna said in a \u003ca href=\"https://medium.com/@SunilPaul/so-long-sidecar-and-thanks-74c8a0955064#.nfaz9z4oh\" target=\"_blank\">post on Medium\u003c/a> that the company would end both its ride and \u003ca href=\"https://www.side.cr/delivery/\" target=\"_blank\">delivery service\u003c/a>, the latter of which it \u003ca href=\"http://www.geekwire.com/2015/packages-people-sidecar-launches-day-delivery-service-partners-eat24/\" target=\"_blank\">launched in February\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\"Today is a turning point for Sidecar as we prepare to end our ride and delivery service so we can work on strategic alternatives and lay the groundwork for the next big thing,\" Paul and Khanna wrote. \"We will cease ride and delivery operations at 2 p.m. Pacific Time, December 31.\"\u003c/p>\n\u003cp>Perhaps it's an indication of just how little business Sidecar was doing that it will terminate its ride-service hours before the rush of New Year's Eve, perhaps the biggest transportation-for-hire night of the year.\u003c/p>\n\u003cp>Paul and Khanna did not specify what \"the next big thing\" might be.\u003c/p>\n\u003cp>\"This is the end of the road for the Sidecar ride and delivery service,\" they wrote, \"but it’s by no means the end of the journey for the company.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>After beta testing in San Francisco in 2011, Sidecar formally \u003ca href=\"https://www.side.cr/sidecar-connects-drivers-and-passengers-one-ride-at-a-time/\" target=\"_blank\">launched in 2012\u003c/a>, portraying itself as \"the first on-demand rideshare community.\"\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/10813504/sidecar-once-an-uber-competitor-ends-its-ride-service","authors":["80"],"programs":["news_6944"],"categories":["news_8","news_1397"],"tags":["news_4524","news_3078","news_4523"],"featImg":"news_10813582","label":"news_6944"},"news_10343864":{"type":"posts","id":"news_10343864","meta":{"index":"posts_1591205157","site":"news","id":"10343864","score":null,"sort":[1413385040000]},"guestAuthors":[],"slug":"sidecar-to-operate-at-san-francisco-airport","title":"Sidecar to Operate at San Francisco Airport","publishDate":1413385040,"format":"standard","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>Sidecar will be the first transportation network company allowed to operate legally at a California airport when it begins operations at San Francisco International Airport in the next 30 days, SFO officials announced Tuesday.\u003c/p>\n\u003cp>The airport is also in talks with Uber and Lyft to begin operating there, but so far neither company has signed a similar permit, SFO officials said.\u003c/p>\n\u003cp>The permit for all three companies is identical, but logistical discussions continue with Uber and Lyft, such as how to track how many vehicles are coming through the airport, SFO spokesman Doug Yakel said.\u003c/p>\n\u003cp>Yakel said Sidecar will be charged $3.85 for each trip to the airport, a fee similar to what taxi and limo services pay to operate there.\u003c/p>\n\u003cp>The airport first established the permitting process for TNCs in April after the California Public Utilities Commission set new regulations requiring permits at airports.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In June, the CPUC threatened to shut down TNCs operating at airports, citing numerous problems with drivers caught there, including unlicensed drivers, cars without proper insurance or registration, and cars operated by someone other than its owner.\u003c/p>\n\u003cp>Since beginning enforcement of the ban on TNCs in April, Yakel said, hundreds of verbal admonishments have been issued for drivers using the airport while not permitted, and about three dozen misdemeanor citations have been issued for second offenses.\u003c/p>\n\u003cp>Most of those drivers were working for Uber, Yakel said.\u003c/p>\n\u003cp>A statement from Sidecar Tuesday did not address any particular provisions of the permit except that the company would not be able to run its Shared Rides program, a carpooling feature that the CPUC has said is illegal.\u003c/p>\n\u003cp>Sidecar and SFO officials, as well as San Francisco Mayor Ed Lee, issued statements hailing the decision.\u003c/p>\n\u003cp>\"The sharing economy was born here, and I am committed to ensuring that San Francisco supports this innovation sector's growth and success,\" Lee said.\u003c/p>\n\u003cp>Sidecar CEO Sunil Paul said, \"When regulators and innovators work together, consumers win. \"SFO is one of our most in-demand places for ride requests, so we're excited and proud to work with them to offer riders safe and affordable travel to and from the airport.\" \u003c/p>\n\u003cp>Airport director John Martin commended Sidecar for coming to an agreement with SFO.\u003c/p>\n\u003cp>\"Their proactive approach sets an example for other transportation network companies to follow,\" Martin said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Yakel said that with only Sidecar permitted to operate at SFO, enforcement would continue for Uber and Lyft drivers trying to make pickups there.\u003c/p>\n\n","blocks":[],"excerpt":"Sidecar will be the first ride-service firm allowed to operate legally at a California airport.","status":"publish","parent":0,"modified":1413416096,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":17,"wordCount":413},"headData":{"title":"Sidecar to Operate at San Francisco Airport | KQED","description":"Sidecar will be the first ride-service firm allowed to operate legally at a California airport.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"10343864 http://ww2.kqed.org/news/?p=10343864","disqusUrl":"https://ww2.kqed.org/news/2014/10/15/sidecar-to-operate-at-san-francisco-airport/","disqusTitle":"Sidecar to Operate at San Francisco Airport","customPermalink":"10/15/2014/Sidecar-Sa-Francisco-Airport/","nprByline":"Bay City News","path":"/news/10343864/sidecar-to-operate-at-san-francisco-airport","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Sidecar will be the first transportation network company allowed to operate legally at a California airport when it begins operations at San Francisco International Airport in the next 30 days, SFO officials announced Tuesday.\u003c/p>\n\u003cp>The airport is also in talks with Uber and Lyft to begin operating there, but so far neither company has signed a similar permit, SFO officials said.\u003c/p>\n\u003cp>The permit for all three companies is identical, but logistical discussions continue with Uber and Lyft, such as how to track how many vehicles are coming through the airport, SFO spokesman Doug Yakel said.\u003c/p>\n\u003cp>Yakel said Sidecar will be charged $3.85 for each trip to the airport, a fee similar to what taxi and limo services pay to operate there.\u003c/p>\n\u003cp>The airport first established the permitting process for TNCs in April after the California Public Utilities Commission set new regulations requiring permits at airports.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In June, the CPUC threatened to shut down TNCs operating at airports, citing numerous problems with drivers caught there, including unlicensed drivers, cars without proper insurance or registration, and cars operated by someone other than its owner.\u003c/p>\n\u003cp>Since beginning enforcement of the ban on TNCs in April, Yakel said, hundreds of verbal admonishments have been issued for drivers using the airport while not permitted, and about three dozen misdemeanor citations have been issued for second offenses.\u003c/p>\n\u003cp>Most of those drivers were working for Uber, Yakel said.\u003c/p>\n\u003cp>A statement from Sidecar Tuesday did not address any particular provisions of the permit except that the company would not be able to run its Shared Rides program, a carpooling feature that the CPUC has said is illegal.\u003c/p>\n\u003cp>Sidecar and SFO officials, as well as San Francisco Mayor Ed Lee, issued statements hailing the decision.\u003c/p>\n\u003cp>\"The sharing economy was born here, and I am committed to ensuring that San Francisco supports this innovation sector's growth and success,\" Lee said.\u003c/p>\n\u003cp>Sidecar CEO Sunil Paul said, \"When regulators and innovators work together, consumers win. \"SFO is one of our most in-demand places for ride requests, so we're excited and proud to work with them to offer riders safe and affordable travel to and from the airport.\" \u003c/p>\n\u003cp>Airport director John Martin commended Sidecar for coming to an agreement with SFO.\u003c/p>\n\u003cp>\"Their proactive approach sets an example for other transportation network companies to follow,\" Martin said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Yakel said that with only Sidecar permitted to operate at SFO, enforcement would continue for Uber and Lyft drivers trying to make pickups there.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/10343864/sidecar-to-operate-at-san-francisco-airport","authors":["byline_news_10343864"],"programs":["news_6944"],"categories":["news_8","news_1397"],"tags":["news_4524","news_3078","news_4523","news_4953"],"featImg":"news_10343877","label":"news_6944"},"news_148743":{"type":"posts","id":"news_148743","meta":{"index":"posts_1591205157","site":"news","id":"148743","score":null,"sort":[1411772432000]},"guestAuthors":[],"slug":"san-francisco-district-attorney-threatens-action-against-uber-lyft-sidecar","title":"San Francisco District Attorney Threatens Action Against Uber, Lyft, Sidecar","publishDate":1411772432,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cfigure id=\"attachment_118115\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/11/lyft.jpg\">\u003cimg class=\"size-full wp-image-118115\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/11/lyft.jpg\" alt=\"A car with a Lyft mustache in San Francisco.(Deborah Svoboda/KQED)\" width=\"640\" height=\"360\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A car with a Lyft mustache in San Francisco.(Deborah Svoboda/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Update, 4 p.m. Friday:\u003c/strong> Lyft has issued a response to the injunction threat from the San Francisco and L.A. DAs:\u003c/p>\n\u003cblockquote>\u003cp>Ridesharing has been enthusiastically embraced by California residents and we have worked closely with the California Public Utilities Commission over the past two years to secure a future for this innovative option throughout the state. We are confident that we can work with the District Attorneys' offices to address the items outlined in their letter and look forward to discussing with them soon to do so.\u003c/p>\u003c/blockquote>\n\u003cp>\u003cstrong>Original post (Thursday): \u003c/strong>San Francisco District Attorney George Gascón and his counterpart in Los Angeles are threatening action against ride-service companies Uber, Lyft and Sidecar over alleged violations of state law.\u003c/p>\n\u003cp>In a letter to San Francisco-based Sidecar (\u003ca href=\"#sidecarletter\">embedded below\u003c/a>), Gascón said an investigation conducted with L.A. County District Attorney Jackie Lacey has found the company has made misleading statements about its background checks on drivers and has illegally quoted individual fares for passengers.\u003c/p>\n\u003cp>The letter promised legal action against the company unless it meets with prosecutors by Oct. 8 to discuss how it will remedy the alleged violations.\u003c/p>\n\u003cp>The San Francisco District Attorney's office confirmed that letters had been hand-delivered to Uber, Lyft and Sidecar on Thursday, but declined to provide copies. The \u003ca href=\"http://www.sfgate.com/bayarea/article/S-F-L-A-threaten-Uber-Lyft-Sidecar-with-5781328.php\" target=\"_blank\">San Francisco Chronicle reported\u003c/a> that the DAs made similar allegations against all three companies.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Lyft and Uber did not respond immediately to requests for comment on the DAs' action. Sidecar provided a copy of the letter it received, which says in part:\u003c/p>\n\u003cblockquote>\u003cp>Sidecar Technologies Inc. has engaged, and continues to engage, in the following unlawful business practices:\u003c/p>\n\u003cul>\n\u003cli>Making misleading representations on Sidecar's website that lead consumers to believe the Sidecar's background check screens out drivers who have ever committed driving violations, DUI, sexual assault and other criminal offenses; and\u003c/li>\n\u003cli>Calculating Sidecar's \"Shared Ride service fares on an individual-fare basis in violation of Public Utilities Code Section 5401.\u003c/li>\n\u003c/ul>\n\u003c/blockquote>\n\u003cp>The Shared Rides service is a form of carpooling that all three of the major ride-service firms have rolled out in recent months. It gives customers the option of sharing rides, and payment, with other ride-service users on an impromptu basis.\u003c/p>\n\u003cp>In a statement, Sidecar said, \"We strongly disagree with the assertion by San Francisco and Los Angeles County District Attorney Office's that connecting people for Sidecar Shared Rides is illegal. Shared Rides are great for California because they are safe and affordable, cut down on traffic congestion and reduce pollution. The District Attorneys are trying to enforce laws written for limousines, in an era before smartphones. Sidecar will continue to operate and expand Shared Rides.\"\u003c/p>\n\u003cp>The company's statement did not address the allegations about its background check.\u003c/p>\n\u003cp>Gascón also issued a statement, which argues the district attorneys are acting on behalf of ride-service customers: “We value innovation and new modes of providing service to the public; however we need to make sure that the safety and wellbeing of consumers are adequately protected in the process.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ca id=\"sidecarletter\">\u003c/a>\u003c/p>\n\n","blocks":[],"excerpt":"Letter to firms cites allegedly misleading statements about completeness of driver background checks.","status":"publish","parent":0,"modified":1412293402,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":15,"wordCount":531},"headData":{"title":"San Francisco District Attorney Threatens Action Against Uber, Lyft, Sidecar | KQED","description":"Letter to firms cites allegedly misleading statements about completeness of driver background checks.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"148743 http://ww2.kqed.org/news/?p=148743","disqusUrl":"https://ww2.kqed.org/news/2014/09/26/san-francisco-district-attorney-threatens-action-against-uber-lyft-sidecar/","disqusTitle":"San Francisco District Attorney Threatens Action Against Uber, Lyft, Sidecar","customPermalink":"2014/09/25/george-gascon-threatens-action-against-uber-lyft-sidecar/","path":"/news/148743/san-francisco-district-attorney-threatens-action-against-uber-lyft-sidecar","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_118115\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/11/lyft.jpg\">\u003cimg class=\"size-full wp-image-118115\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/11/lyft.jpg\" alt=\"A car with a Lyft mustache in San Francisco.(Deborah Svoboda/KQED)\" width=\"640\" height=\"360\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A car with a Lyft mustache in San Francisco.(Deborah Svoboda/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Update, 4 p.m. Friday:\u003c/strong> Lyft has issued a response to the injunction threat from the San Francisco and L.A. DAs:\u003c/p>\n\u003cblockquote>\u003cp>Ridesharing has been enthusiastically embraced by California residents and we have worked closely with the California Public Utilities Commission over the past two years to secure a future for this innovative option throughout the state. We are confident that we can work with the District Attorneys' offices to address the items outlined in their letter and look forward to discussing with them soon to do so.\u003c/p>\u003c/blockquote>\n\u003cp>\u003cstrong>Original post (Thursday): \u003c/strong>San Francisco District Attorney George Gascón and his counterpart in Los Angeles are threatening action against ride-service companies Uber, Lyft and Sidecar over alleged violations of state law.\u003c/p>\n\u003cp>In a letter to San Francisco-based Sidecar (\u003ca href=\"#sidecarletter\">embedded below\u003c/a>), Gascón said an investigation conducted with L.A. County District Attorney Jackie Lacey has found the company has made misleading statements about its background checks on drivers and has illegally quoted individual fares for passengers.\u003c/p>\n\u003cp>The letter promised legal action against the company unless it meets with prosecutors by Oct. 8 to discuss how it will remedy the alleged violations.\u003c/p>\n\u003cp>The San Francisco District Attorney's office confirmed that letters had been hand-delivered to Uber, Lyft and Sidecar on Thursday, but declined to provide copies. The \u003ca href=\"http://www.sfgate.com/bayarea/article/S-F-L-A-threaten-Uber-Lyft-Sidecar-with-5781328.php\" target=\"_blank\">San Francisco Chronicle reported\u003c/a> that the DAs made similar allegations against all three companies.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Lyft and Uber did not respond immediately to requests for comment on the DAs' action. Sidecar provided a copy of the letter it received, which says in part:\u003c/p>\n\u003cblockquote>\u003cp>Sidecar Technologies Inc. has engaged, and continues to engage, in the following unlawful business practices:\u003c/p>\n\u003cul>\n\u003cli>Making misleading representations on Sidecar's website that lead consumers to believe the Sidecar's background check screens out drivers who have ever committed driving violations, DUI, sexual assault and other criminal offenses; and\u003c/li>\n\u003cli>Calculating Sidecar's \"Shared Ride service fares on an individual-fare basis in violation of Public Utilities Code Section 5401.\u003c/li>\n\u003c/ul>\n\u003c/blockquote>\n\u003cp>The Shared Rides service is a form of carpooling that all three of the major ride-service firms have rolled out in recent months. It gives customers the option of sharing rides, and payment, with other ride-service users on an impromptu basis.\u003c/p>\n\u003cp>In a statement, Sidecar said, \"We strongly disagree with the assertion by San Francisco and Los Angeles County District Attorney Office's that connecting people for Sidecar Shared Rides is illegal. Shared Rides are great for California because they are safe and affordable, cut down on traffic congestion and reduce pollution. The District Attorneys are trying to enforce laws written for limousines, in an era before smartphones. Sidecar will continue to operate and expand Shared Rides.\"\u003c/p>\n\u003cp>The company's statement did not address the allegations about its background check.\u003c/p>\n\u003cp>Gascón also issued a statement, which argues the district attorneys are acting on behalf of ride-service customers: “We value innovation and new modes of providing service to the public; however we need to make sure that the safety and wellbeing of consumers are adequately protected in the process.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ca id=\"sidecarletter\">\u003c/a>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/148743/san-francisco-district-attorney-threatens-action-against-uber-lyft-sidecar","authors":["214","222"],"programs":["news_6944"],"categories":["news_248","news_1397"],"tags":["news_546","news_4524","news_3078","news_4523"],"featImg":"news_118115","label":"news_6944"},"news_122972":{"type":"posts","id":"news_122972","meta":{"index":"posts_1591205157","site":"news","id":"122972","score":null,"sort":[1389223037000]},"guestAuthors":[],"slug":"taxi-activists-want-insurance-crackdown-on-ride-share-companies","title":"Taxi Drivers Want San Francisco to Crack Down on 'Ride Share' Insurance ","publishDate":1389223037,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cfigure id=\"attachment_122545\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/2014/01/02/news-pix-tenderloin-pedestrian-memorial-anti-gentrification-protest-and-new-years-traditions/n-of-polk-and-ellis-streets-2/\" rel=\"attachment wp-att-122545\">\u003cimg class=\"size-medium wp-image-122545\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/01/ped-memorial2-640x450.jpg\" alt=\"A memorial at the intersection of Polk and Ellis streets in San Francisco, where a 6-year-old girl was struck by a car and killed on New Year’s Eve. (Sara Bloomberg/KQED)\" width=\"640\" height=\"450\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A memorial at the intersection of Polk and Ellis streets in San Francisco, where a 6-year-old girl was struck by a car and killed on New Year’s Eve. (Sara Bloomberg/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>We \u003ca href=\"http://ww2.kqed.org/news/2014/01/02/122446/\" target=\"_blank\">told you last week \u003c/a>about the repercussions from a New Year's Eve tragedy in which a driver for smartphone ride service UberX struck a mother and two children in a San Francisco crosswalk. One of the children, Sophia Liu, 6, was killed.\u003c/p>\n\u003cp>[contextly_sidebar id=\"d8f086c14fb86d9f3f640b0a4d443e29\"]\u003c/p>\n\u003cp>UberX acknowledged the driver, whom police identified as Syed Muzzafar of Union City, was a \"partner,\" though it said he was not making a trip for the company at the time of the incident. Police arrested Muzzafar on suspicion of vehicular manslaughter, and he was later released after posting bail.\u003c/p>\n\u003cp>The death highlighted an issue that both taxi companies and their drivers have been raising as the ride services — including Lyft, Sidecar, UberX and others — become more popular. Namely: Are the services adequately insured?\u003c/p>\n\u003cp>Later today, we're going to hear that question asked very loudly at City Hall. Members of the \u003ca href=\"http://www.sfcda.org/\" target=\"_blank\">San Francisco Cab Drivers Association\u003c/a> promise to appear at \u003ca href=\"http://sf-police.org/index.aspx?page=4444\" target=\"_blank\">this evening's meeting of the Police Commission\u003c/a> to demand the city enforce its insurance requirements on drivers and vehicles operating as part of the smartphone ride services.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The California Public Utility Commission requires the ride services, which it has dubbed transportation network companies(TNCs), to carry policies that provide $1 million in liability coverage per incident. But as KQED's \u003ca href=\"http://ww2.kqed.org/news/2013/11/14/who-pays-when-ride-share-driver-crashes\" target=\"_blank\">Jon Brooks has reported\u003c/a>, a lot is unknown about the TNC insurance policies. For instance:\u003c/p>\n\u003cul>\n\u003cli>The TNCs provide \"excess\" instead of \"primary\" insurance coverage. The policies are designed to pay for claims uncovered by other insurance -- say, a driver's personal auto insurance policy.\u003c/li>\n\u003cli>The TNCs have said drivers' personal insurance policies will cover some claims if there's an accident; the insurance industry says those policies won't provide any coverage.\u003c/li>\n\u003cli>The insurance industry says ride-service drivers will have to buy commercial insurance to be covered when they're driving for hire and maybe even when they're not.\u003c/li>\n\u003c/ul>\n\u003cp>As a result of the uncertainty surrounding the insurance policies, some TNC drivers say they keep their status secret from their insurers. The taxi industry says the situation leaves the public unprotected. Barry Korengold, president of the cab drivers association, said in a statement today, \"If this practice is knowingly allowed to continue, the city of San Francisco must bear financial responsibility for accidents such as the tragedy that occurred this past New Year's Eve.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>For their part, the ride-service companies say their insurance is adequate and that drivers and passengers are protected.\u003c/p>\n\n","blocks":[],"excerpt":"After New Year's Eve fatality involving a 'ride share' driver, taxi operators want city to take action. ","status":"publish","parent":0,"modified":1389310489,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":10,"wordCount":454},"headData":{"title":"Taxi Drivers Want San Francisco to Crack Down on 'Ride Share' Insurance | KQED","description":"After New Year's Eve fatality involving a 'ride share' driver, taxi operators want city to take action. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"122972 http://ww2.kqed.org/news/?p=122972","disqusUrl":"https://ww2.kqed.org/news/2014/01/08/taxi-activists-want-insurance-crackdown-on-ride-share-companies/","disqusTitle":"Taxi Drivers Want San Francisco to Crack Down on 'Ride Share' Insurance ","customPermalink":"2014/01/08/taxi-drivers-want-insurance-crackdown-on-ride-share-companies/","path":"/news/122972/taxi-activists-want-insurance-crackdown-on-ride-share-companies","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_122545\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/2014/01/02/news-pix-tenderloin-pedestrian-memorial-anti-gentrification-protest-and-new-years-traditions/n-of-polk-and-ellis-streets-2/\" rel=\"attachment wp-att-122545\">\u003cimg class=\"size-medium wp-image-122545\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/01/ped-memorial2-640x450.jpg\" alt=\"A memorial at the intersection of Polk and Ellis streets in San Francisco, where a 6-year-old girl was struck by a car and killed on New Year’s Eve. (Sara Bloomberg/KQED)\" width=\"640\" height=\"450\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A memorial at the intersection of Polk and Ellis streets in San Francisco, where a 6-year-old girl was struck by a car and killed on New Year’s Eve. (Sara Bloomberg/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>We \u003ca href=\"http://ww2.kqed.org/news/2014/01/02/122446/\" target=\"_blank\">told you last week \u003c/a>about the repercussions from a New Year's Eve tragedy in which a driver for smartphone ride service UberX struck a mother and two children in a San Francisco crosswalk. One of the children, Sophia Liu, 6, was killed.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>UberX acknowledged the driver, whom police identified as Syed Muzzafar of Union City, was a \"partner,\" though it said he was not making a trip for the company at the time of the incident. Police arrested Muzzafar on suspicion of vehicular manslaughter, and he was later released after posting bail.\u003c/p>\n\u003cp>The death highlighted an issue that both taxi companies and their drivers have been raising as the ride services — including Lyft, Sidecar, UberX and others — become more popular. Namely: Are the services adequately insured?\u003c/p>\n\u003cp>Later today, we're going to hear that question asked very loudly at City Hall. Members of the \u003ca href=\"http://www.sfcda.org/\" target=\"_blank\">San Francisco Cab Drivers Association\u003c/a> promise to appear at \u003ca href=\"http://sf-police.org/index.aspx?page=4444\" target=\"_blank\">this evening's meeting of the Police Commission\u003c/a> to demand the city enforce its insurance requirements on drivers and vehicles operating as part of the smartphone ride services.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The California Public Utility Commission requires the ride services, which it has dubbed transportation network companies(TNCs), to carry policies that provide $1 million in liability coverage per incident. But as KQED's \u003ca href=\"http://ww2.kqed.org/news/2013/11/14/who-pays-when-ride-share-driver-crashes\" target=\"_blank\">Jon Brooks has reported\u003c/a>, a lot is unknown about the TNC insurance policies. For instance:\u003c/p>\n\u003cul>\n\u003cli>The TNCs provide \"excess\" instead of \"primary\" insurance coverage. The policies are designed to pay for claims uncovered by other insurance -- say, a driver's personal auto insurance policy.\u003c/li>\n\u003cli>The TNCs have said drivers' personal insurance policies will cover some claims if there's an accident; the insurance industry says those policies won't provide any coverage.\u003c/li>\n\u003cli>The insurance industry says ride-service drivers will have to buy commercial insurance to be covered when they're driving for hire and maybe even when they're not.\u003c/li>\n\u003c/ul>\n\u003cp>As a result of the uncertainty surrounding the insurance policies, some TNC drivers say they keep their status secret from their insurers. The taxi industry says the situation leaves the public unprotected. Barry Korengold, president of the cab drivers association, said in a statement today, \"If this practice is knowingly allowed to continue, the city of San Francisco must bear financial responsibility for accidents such as the tragedy that occurred this past New Year's Eve.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>For their part, the ride-service companies say their insurance is adequate and that drivers and passengers are protected.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/122972/taxi-activists-want-insurance-crackdown-on-ride-share-companies","authors":["222"],"programs":["news_6944"],"categories":["news_8","news_1397"],"tags":["news_4524","news_4658","news_4940","news_3078","news_2024","news_4952","news_4523","news_4953"],"featImg":"news_122545","label":"news_6944"},"news_120468":{"type":"posts","id":"news_120468","meta":{"index":"posts_1591205157","site":"news","id":"120468","score":null,"sort":[1387476003000]},"guestAuthors":[],"slug":"tip-or-bribe-taxi-drivers-say-illegal-payments-to-dispatchers-are-routine","title":"Tip or Bribe? Taxi Drivers Say Illegal Payments to Dispatchers Are Routine","publishDate":1387476003,"format":"standard","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>\u003cspan style=\"font-size: 4.6875em;float: left;line-height: 0.733em;padding: 0.05em 0.1em 0 0;font-family: times, serif, georgia\">B\u003c/span>rad Newsham drove a cab in San Francisco for nearly three decades and says he loved nearly everything about the job from the first day he got behind the wheel: the people, the city's beauty, the independence, the sense of experiencing something new every day.\u003c/p>\n\u003cp>\u003ca href=\"http://www.bradnewsham.com/\" target=\"_blank\">Newsham\u003c/a> quit the business this year because he was down to earning a net income of five bucks an hour. Newsham's experience isn't unique — others in San Francisco's taxicab industry say they know drivers who are only netting $5 to $10 an hour. A big part of the tough economics for drivers has to do with ride-service companies like Sidecar, Uber and Lyft siphoning off business from the traditional cab companies.\u003c/p>\n\u003caside class=\"alignright noborder\">\u003cimg src=\"http://u.s.kqed.net/2013/12/18/tip.jpg\" alt=\"Money\">\n\u003ch3>When drivers pay dispatchers, is it a tip? Or a bribe? \u003ca href=\"http://ww2.kqed.org/news/2014/12/13/the-fine-line-between-a-taxi-drivers-tip-and-a-bribe/\" target=\"_blank\">Read more.\u003c/a>\u003c/h3>\n\u003c/aside>\n\u003cp>But part of the money problem for the great majority of taxi drivers, those who rent their vehicles, is the way the business is structured. They start out in the hole every day, needing to make $100 or more just to pay the \"gate,\" or rental fee, for a 10-hour shift. They pay gas on top of that, which could easily come to $20 or $30 a shift or more. You can do the math yourself: To clear San Francisco's minimum wage of $10.55 an hour, they've got to bring in something north of $200, and probably significantly more than that, during their 10 hours on the road.\u003c/p>\n\u003cp>Drivers get no benefits, and may be held responsible for their gate fees when they're too sick to drive. Sometimes they must pay insurance deductibles and they face fines from city taxi regulators when they violate rules.\u003c/p>\n\u003cp>If you wonder how they survive, well, lots of them are just scraping by. Richard Hybels, owner of San Francisco's Metro Cab, says, \"Cab drivers can’t even get their teeth fixed. They’re poor people. It’s not an easy way to make a living by any stretch of the imagination.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>If the financial odds against drivers aren't long enough already, they face another daily cost that industry veterans like Newsham alternatively call \"the tip\" or \"the bribe.\" That’s the unofficial, and illegal, five to ten bucks or more that many drivers say they pay cab company dispatchers and gas attendants every shift.\u003c/p>\n\u003cp>“Whoever bribes the dispatcher the most tends to get the best shifts,\" says Newsham. “I’ve been in situations at companies where if you don’t tip, the dispatcher says, 'Nice to see you ... I don’t have any cabs right now ... why don’t you sit on the bench for awhile until I get one?' I have sat there for three hours waiting for him to find me a cab when I have seen people walk in, give him 20 bucks and walk right out. It’s just a fact of life in the cab world.”\u003c/p>\n\u003cp>Longtime San Francisco \u003ca href=\"http://phantomcabdriverphites.blogspot.com/\" target=\"_blank\">cab driver Ed Healy\u003c/a> says the practice is standard throughout the industry.\u003c/p>\n\u003caside class=\"alignleft\">\n\u003ch3>More in KQED's series\u003c/h3>\n\u003cp>This is the third part in our series on the risks and benefits to those who sign up with networked ride services like Lyft, Sidecar and UberX, versus those who work for the traditional taxicab industry.\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"http://ww2.kqed.org/news/2013/11/07/taxis-lyft-ride-service-war-on-streets-of-san-francisco\">\u003cstrong>Part One\u003c/strong>\u003c/a> describes the growing tensions between ride services and taxi companies.\u003cstrong>\u003c/strong>\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://ww2.kqed.org/news/2013/11/14/who-pays-when-ride-share-driver-crashes\">Part Two\u003c/a>\u003c/strong> examines the insurance risks facing drivers for the ride services.\u003c/li>\n\u003c/ul>\n\u003c/aside>\n\u003cp>\"I once had a dispatcher come out there and I gave him $3 and he threw it back in my face and said, ‘That’s not a tip,'\" says Healy. \"I stopped tipping them completely, and I regularly got cars without any brakes or (that) broke down in various ways. I had one where a huge pipe dropped out of the cab and onto the ground. I had so many breakdowns, and I wondered why I had to wait three hours for somebody to come and tow. So I would say that pretty much enforced tipping is the rule.\"\u003c/p>\n\u003cp>John Han, who drives for Yellow Cab, breaks down his tipping routine: $1 to the gas guy, $5 to the dispatcher in charge of issuing cabs when he goes out and $1 more when he returns to file his paperwork. That's somewhat lower than a lot of drivers, he says. \"Many drivers say $5 going out and $5 coming in to dispatchers and cashiers.\"\u003c/p>\n\u003cp>Emil Lawrence, a driver since 1996 who wrote the popular \u003ca href=\"http://www.sfgate.com/entertainment/article/NIGHT-CABBIE-A-lesson-in-Chinese-relations-2805327.php\" target=\"_blank\">Night Cabbie\u003c/a> column in the old San Francisco Examiner and the San Francisco Chronicle, lays out basically the same scenario in terms of pressure to make these payments:\u003c/p>\n\u003cp>\"If you don't want to piss off anybody that can cause you problems, you have to pay it,\" he says. \"The system that’s pervasive is tips and payola before you get your taxi.\"\u003c/p>\n\u003cp>Lawrence says radio dispatchers will also sometimes demand money for sending lucrative airport calls a driver's way. He says at one company he used to work for, the radio dispatcher had a black book. \"He came up to me ... and said, 'Emil, I looked at my book, you owe me for two airports.'\"\u003c/p>\n\u003cp>Whatever you call it, this kind of payment, voluntary or involuntary, is against the law in San Francisco, and each violation carries a $633 fine for firms that allow it. Perhaps it's not surprising, then, that when you talk to San Francisco taxi companies, virtually all of them say that they don't allow tipping (six of the biggest companies — Yellow, Luxor, DeSoto, Metro, Royal and Town told me tipping is prohibited in their shops; two other companies, Arrow Checker and NationalVeterans, didn't return my calls).\u003c/p>\n\u003cp>Jim Gillespie, general manager at Yellow Cab, said any reports of tipping at the company aren't true. \"It's not happening at Yellow Cab. If that happens I would fire the employees.\"\u003c/p>\n\u003cp>Has it ever happened? \"Not to my knowledge,\" he says.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'I have sat there for three hours waiting for him to find me a cab when I have seen people walk in, give him 20 bucks and walk right out.'\u003cbr>\n\u003ccite>—Brad Newsham, cab driver\u003c/cite>\u003cbr>\n\u003c/aside>\n\u003cp>Charles Rathbone, assistant manager at Luxor, told me, \"Nobody is forced to tip.\" He says the company has signs up saying tipping isn't allowed. \"Nobody has to tip to get a better shift or cab. The cashiers and the dispatchers know we’d come down on them like a ton of bricks. If you know of somebody who says there is (a tipping requirement) please tell them to come in and see me and I promise no retaliation for complaints. Absolutely.\"\u003c/p>\n\u003cp>What about voluntary tipping, which is also prohibited?\u003c/p>\n\u003cp>\"It's the kind of thing that is almost impossible to stop\" he says. \"How do you prevent somebody from passing somebody else a dollar? It’s a very difficult thing to prevent from happening. I’m not going to say categorically that there is no tipping, but it’s certainly not anything the company gets any money from.\"\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe width=\"100%\" height=\"166\" scrolling=\"no\" frameborder=\"no\" src=\"https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/125668303&color=ff6600&auto_play=false&show_artwork=true\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>\u003cstrong>Tipping is an Expensive Reality\u003c/strong>\u003c/p>\n\u003cp>Dan Hara has little doubt that these payments are a reality in San Francisco cab companies.\u003c/p>\n\u003cp>He's an economist whose firm, Hara Associates, compiled \u003ca href=\"http://www.sfmta.com/sites/default/files/Draft%20SF%20DriverSurvey%2037%20Web%20version04042013.pdf\" target=\"_blank\">a report\u003c/a> last year on the city's taxi industry for the San Francisco Municipal Transportation Agency, or SFMTA. The firm's survey of 621 San Francisco cab drivers found that 61 percent said they always pay daily tips to other company employees. More than half of that group, 55 percent, said they pay those tips because they have to.\u003c/p>\n\u003cp>Of the companies for which more than 30 drivers were surveyed, the reported tips ranged from an average of $4.47 for a non-Friday or non-Saturday night shift to $8.95 for a Friday or Saturday night shift.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe width=\"640\" height=\"300\" scrolling=\"no\" frameborder=\"no\" src=\"https://www.google.com/fusiontables/embedviz?containerId=googft-gviz-canvas&q=select+col0%2C+col1%2C+col2%2C+col3+from+10EWOm6XOitK40qidzUUyuF6ng84o_bUsO5jQnZg+order+by+col2+desc+limit+10&viz=GVIZ&t=COLUMN&uiversion=2&gco_forceIFrame=true&gco_hasLabelsColumn=true&gco_vAxes=%5B%7B%22title%22%3A%22Respondents%22%2C+%22minValue%22%3Anull%2C+%22maxValue%22%3Anull%2C+%22useFormatFromData%22%3Atrue%2C+%22viewWindow%22%3A%7B%22max%22%3Anull%2C+%22min%22%3Anull%7D%2C+%22logScale%22%3Afalse%7D%2C%7B%22useFormatFromData%22%3Atrue%2C+%22viewWindow%22%3A%7B%22max%22%3Anull%2C+%22min%22%3Anull%7D%2C+%22minValue%22%3Anull%2C+%22maxValue%22%3Anull%2C+%22logScale%22%3Afalse%7D%5D&gco_useFirstColumnAsDomain=true&gco_isStacked=true&gco_booleanRole=certainty&gco_hAxis=%7B%22useFormatFromData%22%3Atrue%2C+%22minValue%22%3Anull%2C+%22maxValue%22%3Anull%2C+%22viewWindow%22%3Anull%2C+%22viewWindowMode%22%3Anull%7D&gco_legend=right&gco_title=How+often+do+you+pay+tips+to+dispatchers%2C+gas+attendants+or+other+taxi+companies%3F&gco_fontName=Arial&att=true&width=640&height=300\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>Tipping can be expensive, the report added, with 21 percent of drivers reporting they gave daily tips of between $10 and $20 and another 8 percent saying the gave more than $20 per shift. The highest tips came from those working lucrative weekend night shifts.\u003c/p>\n\u003cp>Not everyone who drives a cab and tips dispatchers and gas attendants see that as a problem. One longtime driver who asked to remain anonymous recalls a variation on the usual practice of tipping.\u003c/p>\n\u003cp>\"We would have to go into a lottery, put our names in a hat, and they’d pull out these numbers, and your number would determine your chances [of getting a cab],\" he says. \"Your chances would be better if you decided to give money to the dispatcher. If you tipped, your chances are much greater to get out.\"\u003c/p>\n\u003cp>But this driver says he thinks that kind of tipping is OK.\u003c/p>\n\u003cp>\"I think most people realize they should tip at least 10 to 15 percent if they like the service,\" he says.\u003c/p>\n\u003caside class=\"pullquote alignleft\"> 'It's not happening at Yellow Cab. If that happens I would fire the employees.'\u003cbr>\n\u003ccite>— Jim Gillespie, Yellow Cab general manager\u003c/cite>\u003c/aside>\n\u003cp>Barry Korengold, the president of the San Francisco Cab Drivers Association, says there are worse things happening in the industry right now than pressure to give dispatcher and gas attendants a tip. \"It’s not one of my big issues,\" he says.\u003c/p>\n\u003cp>Korengold and one other driver told me that because drivers live in part on tips, it would be hypocritical not to do the same.\u003c/p>\n\u003cp>Emil Lawrence, for one, says he currently tips because he wants to, but that's only because he owns a cab medallion (which is essentially a license to drive a cab in the city) and has greater leverage. He also said he doesn't blame all cab company employees for taking tips, as they make very little money. \"They have no benefits whatsoever, so this is the way they get their income up.\"\u003c/p>\n\u003cp>\u003cstrong>The Law and How It's Enforced\u003c/strong>\u003c/p>\n\u003cp>When I asked Christiane Hayashi, director of taxis and accessible services for the San Francisco Municipal Transportation Agency, whether drivers tipping taxi company employees was legal, she read from the \u003ca href=\"http://transportation.sanfranciscocode.org/downloads/code-text/II._1105.txt\" target=\"_blank\">San Francisco Transportation Code, Section 1105, sub-section A10,\u003c/a> in effect since 2011.\u003c/p>\n\u003cblockquote>\u003cp>“No Permit Holder or agent of a Permit Holder may accept or solicit gifts and/or gratuities or anything of value from any Driver, other than Gate Fees, Lease Fees, payments for goods actually received, or other payments authorized by this Article. A Permit Holder or agent of a Permit Holder shall issue a receipt for any payment received from a Driver.\"\u003c/p>\u003c/blockquote>\n\u003cp>The ordinance covers voluntary payments, too. That means all tipping is illegal.\u003c/p>\n\u003cp>That absolute ban notwithstanding, Hayashi says she's aware tipping is happening and thinks the practice varies widely from company to company.\u003c/p>\n\u003cp>In addition, she adds, \"The salary structure set up by the companies relies on tipping — it is my understanding that many taxi company employees receive San Francisco's minimum wage and are required to rely on tips to make an adequate salary. ... So it is a deeply ingrained institutional issue that has proven difficult to root out.\u003c/p>\n\u003cp>“In some companies, drivers tip because they genuinely have a relationship with the dispatcher and it’s no big deal,\" Hayashi notes. \"In other companies, it’s definitely more of a culture where you’ve got to do this or else. And the driver who doesn’t tip might find himself having consequences.”\u003c/p>\n\u003cfigure id=\"attachment_120383\" class=\"wp-caption alignleft\" style=\"max-width: 320px\">\u003ca href=\"http://ww2.kqed.org/news/2013/12/12/San+Francisco-taxi-bribes-tips/rs7183_taxis_22oct2013_0125_web-hpf/\" rel=\"attachment wp-att-120383\">\u003cimg class=\"size-full wp-image-120383\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/10/RS7183_Taxis_22oct2013_0125_web-hpf.jpg\" alt=\"Taxis in downtown San Francisco. (Sara Bloomberg/KQED)\" width=\"320\" height=\"213\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Taxis in downtown San Francisco. (Sara Bloomberg/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>But to do something about those \"consequences,\" Hayashi says, a driver would have to file a formal report with the SFMTA. To date, she says, no one has ever been cited for violating Section 1105, sub-section A10.\u003c/p>\n\u003cp>“The drivers may complain to us, but it’s quite another matter to ask them to sign a declaration and go to an administrative hearing,” she says.\u003c/p>\n\u003cp>Veteran driver Brad Newsham says that kind of reasoning is akin to expecting victims of the system to enforce the law. \"You’re going to blame the cab driver who makes a paltry wage for not taking down the system that has been winked at by every regulator that’s ever been,\" he asks, \"and who has thrown up their hands and says, 'There’s nothing we can do'?\"\u003c/p>\n\u003cp>Other drivers say blowing the whistle would be risky. “A driver would be afraid because they’d get fired,\" says Ed Healey, who drives for DeSoto Cab. \"Nobody could survive.”\u003c/p>\n\u003cp>John Han, a Yellow Cab driver, agrees. “I wouldn’t want to go through that process,\" he says. \"I basically would be going on the record with something that does not look very good for the people who I depend upon to issue me a cab every day.”\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>Does Tipping Happen? What the Taxi Companies Say\u003c/h3>\n\u003cp>Under \u003ca href=\"http://transportation.sanfranciscocode.org/downloads/code-text/II._1105.txt\" target=\"_blank\">a San Francisco ordinance\u003c/a>, the taxi industry practice of requiring or allowing drivers to tip dispatchers or other employees is illegal. We asked major San Francisco cab companies whether tipping takes place in their shops. Here's what they told us:\u003c/p>\n\u003cul>\n\u003cli>\u003cstrong>\u003ca href=\"http://yellowcabsf.com/\" target=\"_blank\">Yellow Cab\u003c/a>\u003c/strong>: Jim Gillespie, general manager: \"It's not happening at Yellow Cab. If that happens I would fire the employees.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://www.luxorcab.com/\" target=\"_blank\">Luxor Cabs\u003c/a>\u003c/strong>: Charles Rathbone, assistant manager: \"Nobody is forced to tip.\" What about voluntary tipping? \"It's the kind of thing that it's almost impossible to stop. ... but it’s certainly not anything the company gets any money from.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://www.desotosf.com/\" target=\"_blank\">DeSoto Cab\u003c/a>\u003c/strong>: Hansu Kim, owner: Says compulsory tipping is “almost nonexistent now,” though he acknowledges voluntary tipping continues. \"We have a lot of drivers who don’t tip, so I have to make sure there’s no consequence whether you tip or not. But how do I stop a guy who says, ‘Hey thanks for giving me the orders, here’s five bucks’?\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"https://www.sfmta.com/getting-around/take-taxi/taxi-companies/metro-cab\" target=\"_blank\">Metro Cab\u003c/a>\u003c/strong>: Richard Hybels, owner: \"I want it on my headstone: I’ve never taken a penny from a cabdriver as a tip.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"https://www.sfmta.com/getting-around/take-taxi/taxi-companies/royal-taxi\" target=\"_blank\">Royal Taxi\u003c/a>\u003c/strong>: Christopher Sweis, CEO: He says the company's preset schedule for drivers makes tipping unnecessary in terms of being assigned a cab. As for voluntary tipping, he says: \"It's a practice that we can try our best to enforce and ask our dispatchers not to take tips or ask our drivers not to tip the dispatchers. We can't control every single driver. If it's going to happen, it's going to happen.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://sftowntaxi.com/\" target=\"_blank\">SF Town Taxi\u003c/a>:\u003c/strong> Jacob Mayzel, manager: \"It doesn't happen with Town Taxi.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://www.sfmta.com/vi/getting-around/take-taxi/taxi-companies/arrow-checker-cab\" target=\"_blank\">Arrow Checker\u003c/a>\u003c/strong> Did not respond.\u003c/li>\n\u003cli>\u003ca href=\"http://sfnationalcab.sftaxischool.com/\">\u003cstrong>National Veterans Cab\u003c/strong>\u003c/a> Did not respond.\u003c/li>\n\u003c/ul>\n\u003c/aside>\n\u003cp>Luxor driver Jeremiah Cushing says filing a formal complaint would be like asking, \"Who will step forward so [they] can be shot first? Why don’t I just emboss a scarlet T on my chest? I would just be a total outcast.\"\u003c/p>\n\u003cp>\u003cstrong>Bucking the System\u003c/strong>\u003c/p>\n\u003cp>Cushing's got another solution to the tipping problem, though: Just refuse to do it.\u003c/p>\n\u003cp>\"Most people do five dollars in, five dollars out,\" he says, citing what a company cashier told him, i.e., tipping $5 both at the beginning and end of their shifts. \"I started doing the math on it. ... At the end of the year, it was a lot of money in my pocket going to the unknown ... I said, 'Screw this, I'm not paying any of these guys. ... Other drivers have told me, 'You’re going to need these cashiers, they’re going to provide you a car.' I said, 'No — I do not need them, they need me.'\"\u003c/p>\n\u003cp>Cushing said he hasn't been tipping anyone but the gas guys for more than a year. \"If you ask me why I tip the gas guys, I can't give you a logical answer,\" he says.\u003c/p>\n\u003cp>I asked him if there had been any consequences to his one-man rebellion. He said there had been some minor incidents, including one in which he was assigned a spare cab, typically the vehicle in the worst condition on the lot. He refused to drive it and went home, he said, but there were no other repercussions. \"They have such a shortage of drivers now, I don’t get messed with.\"\u003c/p>\n\u003cp>\u003cstrong>Ray of Hope for Drivers?\u003c/strong>\u003c/p>\n\u003cp>\u003cstrong>\u003c/strong>Metro Cab and Green Cab are two taxi outfits drivers routinely mention as prohibiting tipping. When I asked Metro owner Richard Hybels what's behind his policy, he said:\u003c/p>\n\u003cp>\"Most of the people who work for me are supporting families, or supporting families in another country. It’s a tough business as it is. I make enough money in the normal parts of the business; I don’t need to squeeze any more out of them. ... I want it on my headstone: I’ve never taken a penny from a cabdriver as a tip.\"\u003c/p>\n\u003cp>Former \"Night Cabbie\" columnist Emil Lawrence says many gas-and-gate cab drivers are on the economic margins and that he knows drivers who are living in \u003ca href=\"http://portal.hud.gov/hudportal/HUD?src=/topics/housing_choice_voucher_program_section_8\" target=\"_blank\">Section 8 housing\u003c/a> and receiving food stamps.\u003c/p>\n\u003cp>\"They pay the cab company nonstop, they pay everybody tips nonstop,\" Lawrence says. \"They don't even make minimum wage on some nights, and if they don't pay, they don't have gas, they don't have a job the next day. ... What they make after paying the SFMTA and cab companies, you couldn't make a decent living in downtown Baghdad today.\"\u003c/p>\n\u003cp>\"I've been in that situation,\" he says. \"It's like quicksand.\"\u003c/p>\n\u003cp>But the balance of power between cab drivers and cab companies may be starting to tilt in the drivers' favor.\u003c/p>\n\u003cp>SFMTA consultant Dan Hara says a downturn in the cab business brought about by the rise of ride-service companies has at least temporarily reduced the pressure to tip, because cab companies are having problems filling shifts, a reality confirmed by others in the industry. (Though I recently asked three different drivers during cab rides if they currently tipped taxi company employees, and they all said they did.)\u003c/p>\n\u003cp>While many cab drivers are irate about Sidecar, Lyft and Uber \u003ca href=\"http://ww2.kqed.org/news/2013/11/07/taxis-lyft-ride-service-war-on-streets-of-san-francisco\" target=\"_blank\">cutting into their business\u003c/a>, many others are quitting the cab business to drive with what regulators call \"transportation network companies (TNCs)\" — the very ride-service companies that compete with their cabs.\u003c/p>\n\u003cp>\"Before TNCs, some drivers tipped extensively to get out faster in nicer cars,\" says John Han. \"Now, I'm guessing some of those drivers have gone to TNCs.\"\u003c/p>\n\u003cp>Indeed, one of my recent cab drivers cited the requirement to tip as a major reason he was quitting to go work for Uber. (\"If you get an airport call, the guys ask you for money after and if you don't give you won't get another airport call,\" he said.)\u003c/p>\n\u003caside class=\"pullquote alignleft\"> 'The drivers may complain to us but it’s quite another matter to ask them to sign a declaration...'\u003cbr>\n\u003ccite>— Christiane Hayashi, Director of Taxis at SFMTA\u003c/cite>\u003c/aside>\n\u003cp>I kept asking the drivers if the Lyfts and Sidecars of the world could actually end up \u003cem>helping\u003c/em> them, as they potentially give drivers more leverage in dealing with the cab companies. John Han, for instance, says Yellow recently lowered its Saturday night gate fee for drivers.\u003c/p>\n\u003cp>Some scoffed at the notion that anything good could result from the competition or that they would ever switch to a TNC, citing the \u003ca href=\"http://ww2.kqed.org/news/2013/11/14/who-pays-when-ride-share-driver-crashes\" target=\"_blank\">insurance risk\u003c/a>, among other reasons. But not everyone felt that way. Brad Newsham said if he were giving advice to a young would-be driver today, he'd tell them to skip traditional taxis and go to work for a ride-service company.\u003c/p>\n\u003cp>Emil Lawrence told me there might be something for the average driver to gain from going to work for a ride-service firm.\u003c/p>\n\u003cp>\"I know drivers right now who work for cab companies at the same time they work for Uber,\" he says. \"Radio calls are down probably 70 percent now. They’re down on Friday even more. You’re talking about 10-15 minutes sometimes with no call at all. It’s all on the apps. If you’re a cab driver with a taxi, at the same time you have an Uber setup, that may be the new industry. But you can (also) do that same business in your own car at your own hours without paying the taxi company one dime.\"\u003c/p>\n\u003cp style=\"margin: 12px auto 6px auto;font-family: Helvetica,Arial,Sans-serif;font-style: normal;font-variant: normal;font-weight: normal;font-size: 14px;line-height: normal\">\u003ca style=\"text-decoration: underline\" title=\"View SF Taxi Driver Survey on Scribd\" href=\"http://www.scribd.com/doc/192372483/SF-Taxi-Driver-Survey\">SF Taxi Driver Survey\u003c/a>\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe id=\"doc_39345\" src=\"//www.scribd.com/embeds/192372483/content?start_page=1&view_mode=scroll&show_recommendations=true\" frameborder=\"0\" scrolling=\"no\" width=\"100%\" height=\"600\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>KQED's Lisa Pickoff-White, Bryan Goebel and Katrina Schwartz contributed reporting to this article.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"Unofficial tips get drivers better cabs and better fares, but cut into an already precarious livelihood.","status":"publish","parent":0,"modified":1420846595,"stats":{"hasAudio":true,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":72,"wordCount":3459},"headData":{"title":"Tip or Bribe? Taxi Drivers Say Illegal Payments to Dispatchers Are Routine | KQED","description":"Unofficial tips get drivers better cabs and better fares, but cut into an already precarious livelihood.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"120468 http://ww2.kqed.org/news/?p=120468","disqusUrl":"https://ww2.kqed.org/news/2013/12/19/tip-or-bribe-taxi-drivers-say-illegal-payments-to-dispatchers-are-routine/","disqusTitle":"Tip or Bribe? Taxi Drivers Say Illegal Payments to Dispatchers Are Routine","customPermalink":"2013/12/11/taxi-drivers-and-whos-taking-money-out-of-their-pockets/","path":"/news/120468/tip-or-bribe-taxi-drivers-say-illegal-payments-to-dispatchers-are-routine","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cspan style=\"font-size: 4.6875em;float: left;line-height: 0.733em;padding: 0.05em 0.1em 0 0;font-family: times, serif, georgia\">B\u003c/span>rad Newsham drove a cab in San Francisco for nearly three decades and says he loved nearly everything about the job from the first day he got behind the wheel: the people, the city's beauty, the independence, the sense of experiencing something new every day.\u003c/p>\n\u003cp>\u003ca href=\"http://www.bradnewsham.com/\" target=\"_blank\">Newsham\u003c/a> quit the business this year because he was down to earning a net income of five bucks an hour. Newsham's experience isn't unique — others in San Francisco's taxicab industry say they know drivers who are only netting $5 to $10 an hour. A big part of the tough economics for drivers has to do with ride-service companies like Sidecar, Uber and Lyft siphoning off business from the traditional cab companies.\u003c/p>\n\u003caside class=\"alignright noborder\">\u003cimg src=\"http://u.s.kqed.net/2013/12/18/tip.jpg\" alt=\"Money\">\n\u003ch3>When drivers pay dispatchers, is it a tip? Or a bribe? \u003ca href=\"http://ww2.kqed.org/news/2014/12/13/the-fine-line-between-a-taxi-drivers-tip-and-a-bribe/\" target=\"_blank\">Read more.\u003c/a>\u003c/h3>\n\u003c/aside>\n\u003cp>But part of the money problem for the great majority of taxi drivers, those who rent their vehicles, is the way the business is structured. They start out in the hole every day, needing to make $100 or more just to pay the \"gate,\" or rental fee, for a 10-hour shift. They pay gas on top of that, which could easily come to $20 or $30 a shift or more. You can do the math yourself: To clear San Francisco's minimum wage of $10.55 an hour, they've got to bring in something north of $200, and probably significantly more than that, during their 10 hours on the road.\u003c/p>\n\u003cp>Drivers get no benefits, and may be held responsible for their gate fees when they're too sick to drive. Sometimes they must pay insurance deductibles and they face fines from city taxi regulators when they violate rules.\u003c/p>\n\u003cp>If you wonder how they survive, well, lots of them are just scraping by. Richard Hybels, owner of San Francisco's Metro Cab, says, \"Cab drivers can’t even get their teeth fixed. They’re poor people. It’s not an easy way to make a living by any stretch of the imagination.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>If the financial odds against drivers aren't long enough already, they face another daily cost that industry veterans like Newsham alternatively call \"the tip\" or \"the bribe.\" That’s the unofficial, and illegal, five to ten bucks or more that many drivers say they pay cab company dispatchers and gas attendants every shift.\u003c/p>\n\u003cp>“Whoever bribes the dispatcher the most tends to get the best shifts,\" says Newsham. “I’ve been in situations at companies where if you don’t tip, the dispatcher says, 'Nice to see you ... I don’t have any cabs right now ... why don’t you sit on the bench for awhile until I get one?' I have sat there for three hours waiting for him to find me a cab when I have seen people walk in, give him 20 bucks and walk right out. It’s just a fact of life in the cab world.”\u003c/p>\n\u003cp>Longtime San Francisco \u003ca href=\"http://phantomcabdriverphites.blogspot.com/\" target=\"_blank\">cab driver Ed Healy\u003c/a> says the practice is standard throughout the industry.\u003c/p>\n\u003caside class=\"alignleft\">\n\u003ch3>More in KQED's series\u003c/h3>\n\u003cp>This is the third part in our series on the risks and benefits to those who sign up with networked ride services like Lyft, Sidecar and UberX, versus those who work for the traditional taxicab industry.\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"http://ww2.kqed.org/news/2013/11/07/taxis-lyft-ride-service-war-on-streets-of-san-francisco\">\u003cstrong>Part One\u003c/strong>\u003c/a> describes the growing tensions between ride services and taxi companies.\u003cstrong>\u003c/strong>\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://ww2.kqed.org/news/2013/11/14/who-pays-when-ride-share-driver-crashes\">Part Two\u003c/a>\u003c/strong> examines the insurance risks facing drivers for the ride services.\u003c/li>\n\u003c/ul>\n\u003c/aside>\n\u003cp>\"I once had a dispatcher come out there and I gave him $3 and he threw it back in my face and said, ‘That’s not a tip,'\" says Healy. \"I stopped tipping them completely, and I regularly got cars without any brakes or (that) broke down in various ways. I had one where a huge pipe dropped out of the cab and onto the ground. I had so many breakdowns, and I wondered why I had to wait three hours for somebody to come and tow. So I would say that pretty much enforced tipping is the rule.\"\u003c/p>\n\u003cp>John Han, who drives for Yellow Cab, breaks down his tipping routine: $1 to the gas guy, $5 to the dispatcher in charge of issuing cabs when he goes out and $1 more when he returns to file his paperwork. That's somewhat lower than a lot of drivers, he says. \"Many drivers say $5 going out and $5 coming in to dispatchers and cashiers.\"\u003c/p>\n\u003cp>Emil Lawrence, a driver since 1996 who wrote the popular \u003ca href=\"http://www.sfgate.com/entertainment/article/NIGHT-CABBIE-A-lesson-in-Chinese-relations-2805327.php\" target=\"_blank\">Night Cabbie\u003c/a> column in the old San Francisco Examiner and the San Francisco Chronicle, lays out basically the same scenario in terms of pressure to make these payments:\u003c/p>\n\u003cp>\"If you don't want to piss off anybody that can cause you problems, you have to pay it,\" he says. \"The system that’s pervasive is tips and payola before you get your taxi.\"\u003c/p>\n\u003cp>Lawrence says radio dispatchers will also sometimes demand money for sending lucrative airport calls a driver's way. He says at one company he used to work for, the radio dispatcher had a black book. \"He came up to me ... and said, 'Emil, I looked at my book, you owe me for two airports.'\"\u003c/p>\n\u003cp>Whatever you call it, this kind of payment, voluntary or involuntary, is against the law in San Francisco, and each violation carries a $633 fine for firms that allow it. Perhaps it's not surprising, then, that when you talk to San Francisco taxi companies, virtually all of them say that they don't allow tipping (six of the biggest companies — Yellow, Luxor, DeSoto, Metro, Royal and Town told me tipping is prohibited in their shops; two other companies, Arrow Checker and NationalVeterans, didn't return my calls).\u003c/p>\n\u003cp>Jim Gillespie, general manager at Yellow Cab, said any reports of tipping at the company aren't true. \"It's not happening at Yellow Cab. If that happens I would fire the employees.\"\u003c/p>\n\u003cp>Has it ever happened? \"Not to my knowledge,\" he says.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'I have sat there for three hours waiting for him to find me a cab when I have seen people walk in, give him 20 bucks and walk right out.'\u003cbr>\n\u003ccite>—Brad Newsham, cab driver\u003c/cite>\u003cbr>\n\u003c/aside>\n\u003cp>Charles Rathbone, assistant manager at Luxor, told me, \"Nobody is forced to tip.\" He says the company has signs up saying tipping isn't allowed. \"Nobody has to tip to get a better shift or cab. The cashiers and the dispatchers know we’d come down on them like a ton of bricks. If you know of somebody who says there is (a tipping requirement) please tell them to come in and see me and I promise no retaliation for complaints. Absolutely.\"\u003c/p>\n\u003cp>What about voluntary tipping, which is also prohibited?\u003c/p>\n\u003cp>\"It's the kind of thing that is almost impossible to stop\" he says. \"How do you prevent somebody from passing somebody else a dollar? It’s a very difficult thing to prevent from happening. I’m not going to say categorically that there is no tipping, but it’s certainly not anything the company gets any money from.\"\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe width=\"100%\" height=\"166\" scrolling=\"no\" frameborder=\"no\" src=\"https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/125668303&color=ff6600&auto_play=false&show_artwork=true\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>\u003cstrong>Tipping is an Expensive Reality\u003c/strong>\u003c/p>\n\u003cp>Dan Hara has little doubt that these payments are a reality in San Francisco cab companies.\u003c/p>\n\u003cp>He's an economist whose firm, Hara Associates, compiled \u003ca href=\"http://www.sfmta.com/sites/default/files/Draft%20SF%20DriverSurvey%2037%20Web%20version04042013.pdf\" target=\"_blank\">a report\u003c/a> last year on the city's taxi industry for the San Francisco Municipal Transportation Agency, or SFMTA. The firm's survey of 621 San Francisco cab drivers found that 61 percent said they always pay daily tips to other company employees. More than half of that group, 55 percent, said they pay those tips because they have to.\u003c/p>\n\u003cp>Of the companies for which more than 30 drivers were surveyed, the reported tips ranged from an average of $4.47 for a non-Friday or non-Saturday night shift to $8.95 for a Friday or Saturday night shift.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe width=\"640\" height=\"300\" scrolling=\"no\" frameborder=\"no\" src=\"https://www.google.com/fusiontables/embedviz?containerId=googft-gviz-canvas&q=select+col0%2C+col1%2C+col2%2C+col3+from+10EWOm6XOitK40qidzUUyuF6ng84o_bUsO5jQnZg+order+by+col2+desc+limit+10&viz=GVIZ&t=COLUMN&uiversion=2&gco_forceIFrame=true&gco_hasLabelsColumn=true&gco_vAxes=%5B%7B%22title%22%3A%22Respondents%22%2C+%22minValue%22%3Anull%2C+%22maxValue%22%3Anull%2C+%22useFormatFromData%22%3Atrue%2C+%22viewWindow%22%3A%7B%22max%22%3Anull%2C+%22min%22%3Anull%7D%2C+%22logScale%22%3Afalse%7D%2C%7B%22useFormatFromData%22%3Atrue%2C+%22viewWindow%22%3A%7B%22max%22%3Anull%2C+%22min%22%3Anull%7D%2C+%22minValue%22%3Anull%2C+%22maxValue%22%3Anull%2C+%22logScale%22%3Afalse%7D%5D&gco_useFirstColumnAsDomain=true&gco_isStacked=true&gco_booleanRole=certainty&gco_hAxis=%7B%22useFormatFromData%22%3Atrue%2C+%22minValue%22%3Anull%2C+%22maxValue%22%3Anull%2C+%22viewWindow%22%3Anull%2C+%22viewWindowMode%22%3Anull%7D&gco_legend=right&gco_title=How+often+do+you+pay+tips+to+dispatchers%2C+gas+attendants+or+other+taxi+companies%3F&gco_fontName=Arial&att=true&width=640&height=300\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>Tipping can be expensive, the report added, with 21 percent of drivers reporting they gave daily tips of between $10 and $20 and another 8 percent saying the gave more than $20 per shift. The highest tips came from those working lucrative weekend night shifts.\u003c/p>\n\u003cp>Not everyone who drives a cab and tips dispatchers and gas attendants see that as a problem. One longtime driver who asked to remain anonymous recalls a variation on the usual practice of tipping.\u003c/p>\n\u003cp>\"We would have to go into a lottery, put our names in a hat, and they’d pull out these numbers, and your number would determine your chances [of getting a cab],\" he says. \"Your chances would be better if you decided to give money to the dispatcher. If you tipped, your chances are much greater to get out.\"\u003c/p>\n\u003cp>But this driver says he thinks that kind of tipping is OK.\u003c/p>\n\u003cp>\"I think most people realize they should tip at least 10 to 15 percent if they like the service,\" he says.\u003c/p>\n\u003caside class=\"pullquote alignleft\"> 'It's not happening at Yellow Cab. If that happens I would fire the employees.'\u003cbr>\n\u003ccite>— Jim Gillespie, Yellow Cab general manager\u003c/cite>\u003c/aside>\n\u003cp>Barry Korengold, the president of the San Francisco Cab Drivers Association, says there are worse things happening in the industry right now than pressure to give dispatcher and gas attendants a tip. \"It’s not one of my big issues,\" he says.\u003c/p>\n\u003cp>Korengold and one other driver told me that because drivers live in part on tips, it would be hypocritical not to do the same.\u003c/p>\n\u003cp>Emil Lawrence, for one, says he currently tips because he wants to, but that's only because he owns a cab medallion (which is essentially a license to drive a cab in the city) and has greater leverage. He also said he doesn't blame all cab company employees for taking tips, as they make very little money. \"They have no benefits whatsoever, so this is the way they get their income up.\"\u003c/p>\n\u003cp>\u003cstrong>The Law and How It's Enforced\u003c/strong>\u003c/p>\n\u003cp>When I asked Christiane Hayashi, director of taxis and accessible services for the San Francisco Municipal Transportation Agency, whether drivers tipping taxi company employees was legal, she read from the \u003ca href=\"http://transportation.sanfranciscocode.org/downloads/code-text/II._1105.txt\" target=\"_blank\">San Francisco Transportation Code, Section 1105, sub-section A10,\u003c/a> in effect since 2011.\u003c/p>\n\u003cblockquote>\u003cp>“No Permit Holder or agent of a Permit Holder may accept or solicit gifts and/or gratuities or anything of value from any Driver, other than Gate Fees, Lease Fees, payments for goods actually received, or other payments authorized by this Article. A Permit Holder or agent of a Permit Holder shall issue a receipt for any payment received from a Driver.\"\u003c/p>\u003c/blockquote>\n\u003cp>The ordinance covers voluntary payments, too. That means all tipping is illegal.\u003c/p>\n\u003cp>That absolute ban notwithstanding, Hayashi says she's aware tipping is happening and thinks the practice varies widely from company to company.\u003c/p>\n\u003cp>In addition, she adds, \"The salary structure set up by the companies relies on tipping — it is my understanding that many taxi company employees receive San Francisco's minimum wage and are required to rely on tips to make an adequate salary. ... So it is a deeply ingrained institutional issue that has proven difficult to root out.\u003c/p>\n\u003cp>“In some companies, drivers tip because they genuinely have a relationship with the dispatcher and it’s no big deal,\" Hayashi notes. \"In other companies, it’s definitely more of a culture where you’ve got to do this or else. And the driver who doesn’t tip might find himself having consequences.”\u003c/p>\n\u003cfigure id=\"attachment_120383\" class=\"wp-caption alignleft\" style=\"max-width: 320px\">\u003ca href=\"http://ww2.kqed.org/news/2013/12/12/San+Francisco-taxi-bribes-tips/rs7183_taxis_22oct2013_0125_web-hpf/\" rel=\"attachment wp-att-120383\">\u003cimg class=\"size-full wp-image-120383\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/10/RS7183_Taxis_22oct2013_0125_web-hpf.jpg\" alt=\"Taxis in downtown San Francisco. (Sara Bloomberg/KQED)\" width=\"320\" height=\"213\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Taxis in downtown San Francisco. (Sara Bloomberg/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>But to do something about those \"consequences,\" Hayashi says, a driver would have to file a formal report with the SFMTA. To date, she says, no one has ever been cited for violating Section 1105, sub-section A10.\u003c/p>\n\u003cp>“The drivers may complain to us, but it’s quite another matter to ask them to sign a declaration and go to an administrative hearing,” she says.\u003c/p>\n\u003cp>Veteran driver Brad Newsham says that kind of reasoning is akin to expecting victims of the system to enforce the law. \"You’re going to blame the cab driver who makes a paltry wage for not taking down the system that has been winked at by every regulator that’s ever been,\" he asks, \"and who has thrown up their hands and says, 'There’s nothing we can do'?\"\u003c/p>\n\u003cp>Other drivers say blowing the whistle would be risky. “A driver would be afraid because they’d get fired,\" says Ed Healey, who drives for DeSoto Cab. \"Nobody could survive.”\u003c/p>\n\u003cp>John Han, a Yellow Cab driver, agrees. “I wouldn’t want to go through that process,\" he says. \"I basically would be going on the record with something that does not look very good for the people who I depend upon to issue me a cab every day.”\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>Does Tipping Happen? What the Taxi Companies Say\u003c/h3>\n\u003cp>Under \u003ca href=\"http://transportation.sanfranciscocode.org/downloads/code-text/II._1105.txt\" target=\"_blank\">a San Francisco ordinance\u003c/a>, the taxi industry practice of requiring or allowing drivers to tip dispatchers or other employees is illegal. We asked major San Francisco cab companies whether tipping takes place in their shops. Here's what they told us:\u003c/p>\n\u003cul>\n\u003cli>\u003cstrong>\u003ca href=\"http://yellowcabsf.com/\" target=\"_blank\">Yellow Cab\u003c/a>\u003c/strong>: Jim Gillespie, general manager: \"It's not happening at Yellow Cab. If that happens I would fire the employees.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://www.luxorcab.com/\" target=\"_blank\">Luxor Cabs\u003c/a>\u003c/strong>: Charles Rathbone, assistant manager: \"Nobody is forced to tip.\" What about voluntary tipping? \"It's the kind of thing that it's almost impossible to stop. ... but it’s certainly not anything the company gets any money from.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://www.desotosf.com/\" target=\"_blank\">DeSoto Cab\u003c/a>\u003c/strong>: Hansu Kim, owner: Says compulsory tipping is “almost nonexistent now,” though he acknowledges voluntary tipping continues. \"We have a lot of drivers who don’t tip, so I have to make sure there’s no consequence whether you tip or not. But how do I stop a guy who says, ‘Hey thanks for giving me the orders, here’s five bucks’?\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"https://www.sfmta.com/getting-around/take-taxi/taxi-companies/metro-cab\" target=\"_blank\">Metro Cab\u003c/a>\u003c/strong>: Richard Hybels, owner: \"I want it on my headstone: I’ve never taken a penny from a cabdriver as a tip.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"https://www.sfmta.com/getting-around/take-taxi/taxi-companies/royal-taxi\" target=\"_blank\">Royal Taxi\u003c/a>\u003c/strong>: Christopher Sweis, CEO: He says the company's preset schedule for drivers makes tipping unnecessary in terms of being assigned a cab. As for voluntary tipping, he says: \"It's a practice that we can try our best to enforce and ask our dispatchers not to take tips or ask our drivers not to tip the dispatchers. We can't control every single driver. If it's going to happen, it's going to happen.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://sftowntaxi.com/\" target=\"_blank\">SF Town Taxi\u003c/a>:\u003c/strong> Jacob Mayzel, manager: \"It doesn't happen with Town Taxi.\"\u003c/li>\n\u003cli>\u003cstrong>\u003ca href=\"http://www.sfmta.com/vi/getting-around/take-taxi/taxi-companies/arrow-checker-cab\" target=\"_blank\">Arrow Checker\u003c/a>\u003c/strong> Did not respond.\u003c/li>\n\u003cli>\u003ca href=\"http://sfnationalcab.sftaxischool.com/\">\u003cstrong>National Veterans Cab\u003c/strong>\u003c/a> Did not respond.\u003c/li>\n\u003c/ul>\n\u003c/aside>\n\u003cp>Luxor driver Jeremiah Cushing says filing a formal complaint would be like asking, \"Who will step forward so [they] can be shot first? Why don’t I just emboss a scarlet T on my chest? I would just be a total outcast.\"\u003c/p>\n\u003cp>\u003cstrong>Bucking the System\u003c/strong>\u003c/p>\n\u003cp>Cushing's got another solution to the tipping problem, though: Just refuse to do it.\u003c/p>\n\u003cp>\"Most people do five dollars in, five dollars out,\" he says, citing what a company cashier told him, i.e., tipping $5 both at the beginning and end of their shifts. \"I started doing the math on it. ... At the end of the year, it was a lot of money in my pocket going to the unknown ... I said, 'Screw this, I'm not paying any of these guys. ... Other drivers have told me, 'You’re going to need these cashiers, they’re going to provide you a car.' I said, 'No — I do not need them, they need me.'\"\u003c/p>\n\u003cp>Cushing said he hasn't been tipping anyone but the gas guys for more than a year. \"If you ask me why I tip the gas guys, I can't give you a logical answer,\" he says.\u003c/p>\n\u003cp>I asked him if there had been any consequences to his one-man rebellion. He said there had been some minor incidents, including one in which he was assigned a spare cab, typically the vehicle in the worst condition on the lot. He refused to drive it and went home, he said, but there were no other repercussions. \"They have such a shortage of drivers now, I don’t get messed with.\"\u003c/p>\n\u003cp>\u003cstrong>Ray of Hope for Drivers?\u003c/strong>\u003c/p>\n\u003cp>\u003cstrong>\u003c/strong>Metro Cab and Green Cab are two taxi outfits drivers routinely mention as prohibiting tipping. When I asked Metro owner Richard Hybels what's behind his policy, he said:\u003c/p>\n\u003cp>\"Most of the people who work for me are supporting families, or supporting families in another country. It’s a tough business as it is. I make enough money in the normal parts of the business; I don’t need to squeeze any more out of them. ... I want it on my headstone: I’ve never taken a penny from a cabdriver as a tip.\"\u003c/p>\n\u003cp>Former \"Night Cabbie\" columnist Emil Lawrence says many gas-and-gate cab drivers are on the economic margins and that he knows drivers who are living in \u003ca href=\"http://portal.hud.gov/hudportal/HUD?src=/topics/housing_choice_voucher_program_section_8\" target=\"_blank\">Section 8 housing\u003c/a> and receiving food stamps.\u003c/p>\n\u003cp>\"They pay the cab company nonstop, they pay everybody tips nonstop,\" Lawrence says. \"They don't even make minimum wage on some nights, and if they don't pay, they don't have gas, they don't have a job the next day. ... What they make after paying the SFMTA and cab companies, you couldn't make a decent living in downtown Baghdad today.\"\u003c/p>\n\u003cp>\"I've been in that situation,\" he says. \"It's like quicksand.\"\u003c/p>\n\u003cp>But the balance of power between cab drivers and cab companies may be starting to tilt in the drivers' favor.\u003c/p>\n\u003cp>SFMTA consultant Dan Hara says a downturn in the cab business brought about by the rise of ride-service companies has at least temporarily reduced the pressure to tip, because cab companies are having problems filling shifts, a reality confirmed by others in the industry. (Though I recently asked three different drivers during cab rides if they currently tipped taxi company employees, and they all said they did.)\u003c/p>\n\u003cp>While many cab drivers are irate about Sidecar, Lyft and Uber \u003ca href=\"http://ww2.kqed.org/news/2013/11/07/taxis-lyft-ride-service-war-on-streets-of-san-francisco\" target=\"_blank\">cutting into their business\u003c/a>, many others are quitting the cab business to drive with what regulators call \"transportation network companies (TNCs)\" — the very ride-service companies that compete with their cabs.\u003c/p>\n\u003cp>\"Before TNCs, some drivers tipped extensively to get out faster in nicer cars,\" says John Han. \"Now, I'm guessing some of those drivers have gone to TNCs.\"\u003c/p>\n\u003cp>Indeed, one of my recent cab drivers cited the requirement to tip as a major reason he was quitting to go work for Uber. (\"If you get an airport call, the guys ask you for money after and if you don't give you won't get another airport call,\" he said.)\u003c/p>\n\u003caside class=\"pullquote alignleft\"> 'The drivers may complain to us but it’s quite another matter to ask them to sign a declaration...'\u003cbr>\n\u003ccite>— Christiane Hayashi, Director of Taxis at SFMTA\u003c/cite>\u003c/aside>\n\u003cp>I kept asking the drivers if the Lyfts and Sidecars of the world could actually end up \u003cem>helping\u003c/em> them, as they potentially give drivers more leverage in dealing with the cab companies. John Han, for instance, says Yellow recently lowered its Saturday night gate fee for drivers.\u003c/p>\n\u003cp>Some scoffed at the notion that anything good could result from the competition or that they would ever switch to a TNC, citing the \u003ca href=\"http://ww2.kqed.org/news/2013/11/14/who-pays-when-ride-share-driver-crashes\" target=\"_blank\">insurance risk\u003c/a>, among other reasons. But not everyone felt that way. Brad Newsham said if he were giving advice to a young would-be driver today, he'd tell them to skip traditional taxis and go to work for a ride-service company.\u003c/p>\n\u003cp>Emil Lawrence told me there might be something for the average driver to gain from going to work for a ride-service firm.\u003c/p>\n\u003cp>\"I know drivers right now who work for cab companies at the same time they work for Uber,\" he says. \"Radio calls are down probably 70 percent now. They’re down on Friday even more. You’re talking about 10-15 minutes sometimes with no call at all. It’s all on the apps. If you’re a cab driver with a taxi, at the same time you have an Uber setup, that may be the new industry. But you can (also) do that same business in your own car at your own hours without paying the taxi company one dime.\"\u003c/p>\n\u003cp style=\"margin: 12px auto 6px auto;font-family: Helvetica,Arial,Sans-serif;font-style: normal;font-variant: normal;font-weight: normal;font-size: 14px;line-height: normal\">\u003ca style=\"text-decoration: underline\" title=\"View SF Taxi Driver Survey on Scribd\" href=\"http://www.scribd.com/doc/192372483/SF-Taxi-Driver-Survey\">SF Taxi Driver Survey\u003c/a>\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe id=\"doc_39345\" src=\"//www.scribd.com/embeds/192372483/content?start_page=1&view_mode=scroll&show_recommendations=true\" frameborder=\"0\" scrolling=\"no\" width=\"100%\" height=\"600\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>KQED's Lisa Pickoff-White, Bryan Goebel and Katrina Schwartz contributed reporting to this article.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/120468/tip-or-bribe-taxi-drivers-say-illegal-payments-to-dispatchers-are-routine","authors":["80"],"programs":["news_6944"],"categories":["news_248","news_1397"],"tags":["news_4524","news_4940","news_1334","news_3078","news_3640","news_4952","news_4523"],"featImg":"news_114950","label":"news_6944"},"news_114693":{"type":"posts","id":"news_114693","meta":{"index":"posts_1591205157","site":"news","id":"114693","score":null,"sort":[1383840021000]},"guestAuthors":[],"slug":"need-a-lyft-or-a-taxi-the-battle-rages-on-the-streets-of-san-francisco","title":"Will 'Ride Sharing' Kill San Francisco's Taxi Industry? ","publishDate":1383840021,"format":"standard","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>\u003cem>With the rise of what some call the “sharing economy” — or shared access to goods, services, data and talent — many industries are facing disruption. One of those is the taxi industry, where app-based ride-service startups threaten the taxis’ entrenched business model. In the first installment of a three-part series, KQED’s Jon Brooks looks at the shakeout, assessing the risks and benefits to those who sign up as ride-service drivers vs. traditional cab drivers, and uncovers some startling signs of trouble in San Francisco.\u003c/em>\u003c/p>\n\u003cp>\u003cspan style=\"font-size: 4.6875em;float: left;line-height: 0.733em;padding: 0.05em 0.1em 0 0;font-family: times, serif, georgia\">O\u003c/span>n the streets of San Francisco, what might be called the “Mustache War” has begun, pitting the traditional taxi industry against the networked ride services like \u003ca href=\"http://www.lyft.me/\" target=\"_blank\">Lyft\u003c/a> (of the pink mustache), \u003ca href=\"http://www.side.cr/\" target=\"_blank\">Sidecar\u003c/a> and \u003ca href=\"https://www.uber.com/\" target=\"_blank\">UberX\u003c/a>. In September, the California Public Utilities Commission approved \u003ca href=\"http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M077/K112/77112285.PDF\" target=\"_blank\">regulations\u003c/a> to oversee the ride-service startups, which allow passengers to hire private drivers through smartphone apps.\u003c/p>\n\u003cp>The nascent business model has been widely called “ride-sharing,” but the CPUC said that term is a misnomer. The companies are now officially referred to as “Transportation Network Companies,” or TNCs, a term with a much less altruistic ring.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'Mustache Wars' — the conflict between the traditional taxi industry and smartphone-based ride services:\n\u003cdiv style=\"font-size: 12pt\">\n\u003cul>\n\u003cli>\u003cstrong>Part Two: \u003c/strong>\u003ca href=\"http://ww2.kqed.org/news/2013/11/14/who-pays-when-ride-share-driver-crashes\" target=\"_blank\">Confusion Over Insurance for ‘Ride-Sharing’ Drivers\u003c/a>\u003c/li>\n\u003cli>\u003cstrong>Sidebar:\u003c/strong> \u003ca href=\"http://ww2.kqed.org/news/2013/11/14/can-lyft-uberx-drivers-lose-their-insurance\" target=\"_blank\">Are Ride-Service Drivers at Risk of Losing Their Insurance?\u003c/a>\u003c/li>\n\u003cli>\u003cstrong>Part Three:\u003c/strong> \u003ca href=\"http://ww2.kqed.org/news/2013/12/11/taxi-drivers-and-whos-taking-money-out-of-their-pockets\" target=\"_blank\">Tip or Bribe? Taxi Drivers Say Illegal Payments to Dispatchers Are Routine\u003c/a>\u003c/li>\n\u003cli>\u003cstrong>Sidebar:\u003c/strong> \u003ca href=\"http://ww2.kqed.org/news/2014/12/13/the-fine-line-between-a-taxi-drivers-tip-and-a-bribe/\" target=\"_blank\">The Fine Line Between a Tip And a Bribe For Those Who Drive S.F. Taxis\u003c/a>\u003c/li>\n\u003c/ul>\n\u003c/div>\n\u003c/aside>\n\u003cp>Though the TNCs may have lost the connotative battle, they think they’ve won the war. While the new regulations require the companies to run background checks and institute training programs, offer a higher level of insurance and accommodate disabled passengers and low-income neighborhoods, they have also given the companies official legal sanction to operate.\u003c/p>\n\u003cp>That’s a far cry from a year ago, when the CPUC hit TNCs with cease-and-desist letters and fines.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>If these high-tech ride-for-hire matchmakers are the big winners in the regulatory conflict, the traditional taxi industry sees itself as decidedly on the short end.\u003c/p>\n\u003cp>In San Francisco, while the new services have helped mitigate the notoriously difficult task of finding a cab during peak hours, they have also prompted bitter protests from licensed companies and drivers, who view them as unregulated competition that has taken a big bite out of the taxi market. Before the CPUC issued its proposal in July, \u003ca href=\"http://sanfrancisco.cbslocal.com/2013/07/30/cab-drivers-hold-noisy-rally-at-san-francisco-city-hall-to-protest-rideshare/\" target=\"_blank\">hundreds of protesting drivers circled San Francisco City Hall in their taxis\u003c/a>, honking horns and calling on Mayor Ed Lee, despite his lack of jurisdiction, to kick the companies out of San Francisco.\u003c/p>\n\u003cp>\u003cstrong>Cab Industry: Personal Vehicles for Hire 'Outrageous'\u003c/strong>\u003c/p>\n\u003cp>Hansu Kim, the owner of San Francisco's DeSoto Cab and a board member of the trade group \u003ca href=\"http://tpac-ca.org/\" target=\"_blank\">Taxicab Paratransit Association of California\u003c/a>, acknowledges the CPUC’s regulations might go some way in leveling the playing field in terms of competition between the ride services and the tightly regulated cab industry.\u003c/p>\n\u003cp>But he says the rules don’t go far enough to stop the bleeding in the taxi business or to protect public safety. TPAC has \u003ca href=\"http://www.bizjournals.com/sanfrancisco/blog/2013/10/uber-lyft-sidecar-taxicab-puc.html\" target=\"_blank\">filed\u003c/a> an \u003ca href=\"http://www.taxi-library.org/cpuc-2013/rehearing-application-tpac.pdf\" target=\"_blank\">appeal\u003c/a> with the CPUC over its decision, and Kim says the industry will most likely \u003ca href=\"http://www.bizjournals.com/sanfrancisco/blog/2013/10/uberx-lyft-sidecar-andreessen-horowitz.html?page=all\" target=\"_blank\">sue\u003c/a> over its declining fortunes.\u003c/p>\n\u003caside class=\"pullquote alignright\">\"The cab industry will disappear. There will be no cab industry if this isn’t addressed.\" \u003c/aside>\n\u003cp>“I think the industry has no choice but to monetize their losses and take it to the courts,\" he says. \"I’m tightly regulated — what I can charge, the number of vehicles I can put out. They can charge what they want and put out the number of vehicles they want.\"\u003c/p>\n\u003cp>And Kim concludes: \"The idea of taking a personal car and acting like a commercial vehicle for hire is outrageous.\"\u003c/p>\n\u003cp>\"This is the same service competing for the same customers,\" says Barry Korengold, president of the \u003ca href=\"http://www.sfcda.org/\" target=\"_blank\">San Francisco Cab Drivers Association\u003c/a>. But he complains the new companies are allowed to bypass city regulations on the rates they charge, insurance, permit fees and the like.\u003c/p>\n\u003cp>Brad Newsham, who drove a cab in the city for 28 years and was also a chair of the United Taxicab Workers, says what's particularly galling is the low barrier to entry for the newbies compared to \u003ca href=\"http://www.sfmta.com/services/taxi-industry/become-taxi-driver\" target=\"_blank\">what the city requires cab drivers to go through\u003c/a>.\u003c/p>\n\u003cp>\"They didn’t have to go to cab school, didn’t have to pay for an A-card,\" Newsham says, referring to a cab-specific license that costs about $100 a year. \"They didn’t have to do all the stuff we have to do. ... I worked 20 years to get a medallion and these people walk in there and suddenly they’ve got everything I’ve got.\"\u003c/p>\n\u003cp>In its rule-making, the CPUC rejected arguments charging the TNCs with unfair competition and dismissed warnings the new services will result in a \"race toward the bottom with negative impact on safety and service.\" In fact, the commission said its rules were similar to what the San Francisco Municipal Transportation Agency already requires of cab operators\u003c/p>\n\u003cp>The way Brad Newsham sees it, regulations or not, the TNCs could finish off the cab industry.\u003c/p>\n\u003cp>\"In my estimation, it's on the verge of being wiped out,\" he says. And he thinks the Internet's so-called \"\u003ca href=\"http://www.forbes.com/sites/tomiogeron/2013/01/23/airbnb-and-the-unstoppable-rise-of-the-share-economy/\" target=\"_blank\">sharing economy\u003c/a>,\" allowing all sorts of people to transform themselves into instant entrepreneurs by \u003ca href=\"http://www.economist.com/news/leaders/21573104-internet-everything-hire-rise-sharing-economy\" target=\"_blank\">leveraging personal assets like a car or a home\u003c/a>, might put an end to the driving profession.\u003c/p>\n\u003cp>\"Maybe the cab driver as an institution is dead,\" he says.\u003c/p>\n\u003cp>That's not the only time I heard taxi industry stakeholders describe the ride services as an existential threat.\u003c/p>\n\u003cp>\"The cab industry will disappear,\" says Barry Korengold of the cab drivers association. \"There will be no cab industry if this isn’t addressed.\"\u003c/p>\n\u003cp>\u003cstrong>Giving Them the Finger\u003c/strong>\u003c/p>\n\u003cp>Besides engaging in \u003ca href=\"http://sftaxischool.com/1/post/2013/07/the-end-of-rideshare-trevor-johnson.html\" target=\"_blank\">heated rhetoric\u003c/a>, cab drivers have also taken out their frustrations on their ride-service counterparts in the street.\u003c/p>\n\u003cp>One of the Lyft drivers I spoke to said cab drivers have given him his \"fair share of the one-finger salute.\" Said another: \"I have never been harassed, but I'll admit, after reading some of the crap fellow drivers go through, I often take my mustache down when I don't have any passengers.\"\u003c/p>\n\u003cfigure id=\"attachment_117323\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS7192_IMG_9674.jpg\">\u003cimg class=\"size-medium wp-image-117323\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS7192_IMG_9674-300x200.jpg\" alt=\"Brad Newsham, a former cab driver of 28 years who was also a chair of the United Taxicab Workers. (Courtesy David Kidd)\" width=\"300\" height=\"200\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Brad Newsham, a former cab driver of 28 years who was also a chair of the United Taxicab Workers. (Courtesy David Kidd)\u003c/figcaption>\u003c/figure>\n\u003cp>Another driver said that in the course of the four months he's been working for Lyft, there have been maybe five incidents in which cab drivers have taken him on, calling him a \"whore,\" boxing in his vehicle, and taking a picture of his license plate, accompanied by a threat to send it to his insurance company.\u003c/p>\n\u003cp>That last tactic — outing ride-service drivers as commercial-vehicle operators to their insurers — is actually an official policy of the San Francisco Cab Drivers Association, says Barry Korengold. \"We're supplying [the insurance companies] with factual evidence,\" he says. “We collect the license plate numbers.\" He says so far, his group has logged 1,300 or 1,400 plates.\u003c/p>\n\u003cp>Even Newsham, an author who was once \u003ca href=\"http://www.npr.org/templates/story/story.php?storyId=1124175\" target=\"_blank\">featured on NPR\u003c/a> and comes across as relatively even-tempered, says he couldn't control himself when it came to the pink mustaches. \"I’m not a guy who flips the bird. But the last few months I was driving a cab, every time I saw one ... my hand went up. I just couldn’t stop it.\"\u003c/p>\n\u003cp>In talking to longtime cab drivers like Newsham and Korengold, I thought there might be something other than just financial self-interest involved in their extreme animosity toward ride-service drivers. I suggested to Korengold, who has been driving for 30 years, that he sounded downright \"offended\" by the newcomers, who have set up shop as professional drivers so quickly and with an almost total absence of bureaucratic hassle. He jumped on that word.\u003c/p>\n\u003cp>\"I’m \u003cem>totally\u003c/em> offended. It’s disrespectful to the occupation. It’s a dangerous occupation. Not only do you have to worry about unruly passengers, drunk drivers, it’s a backbreaking job. It’s very disrespectful to the people who are doing this for years and it makes a mockery of the occupation, and of the regulations.\"\u003c/p>\n\u003cp>\u003cstrong>Cab Industry 'Shot Itself in the Foot' \u003c/strong>\u003c/p>\n\u003cp>Some in the San Francisco taxi community admit the industry's failure to solve well-known problems, like the unavailability of cabs, have given the ride services an opening. \"I think it’s pretty clear that these new services popped up because the taxi industry did not provide service here,\" says Hansu Kim.\u003c/p>\n\u003cp>\"I gotta say, it’s a good thing for the people of San Francisco that they can get a cab more easily now,\" says Newsham. \"The one good thing about this whole thing that has happened in the past years.”\u003c/p>\n\u003caside class=\"pullquote alignright\">\"I think it’s pretty clear that these new services popped up because the taxi industry did not provide service here.\"\u003c/aside>\n\u003cp>Addressing that issue in a blog post, KQED Pop's Lizzy Acker wrote about a \u003ca href=\"http://blogs.kqed.org/pop/2013/08/13/behind-the-pink-mustache-is-lyft-good-evil-or-something-else-entirely/\">Lyft ride she took to the airport\u003c/a> in August: \"It’s convenient and personal and I actually got a timely, affordable ride, which no taxi company in SF seemed able to provide for me on a Thursday afternoon for any price.\"\u003c/p>\n\u003cp>Newsham criticizes the industry for not figuring out how to offer that kind of easy access to taxis. \"The cab industry here shot itself in the foot,\" he says. \"...It has refused to deploy dispatching innovations. It has refused to keep up with the times and the times have moved right past them.\"\u003c/p>\n\u003cp>Newsham says cab drivers have been asking for something called \"centralized dispatch\" for decades.\u003c/p>\n\u003cp>Christiane Hayashi, the SFMTA's director of Taxis and Accessible Services, elaborates: \"I think it was initially raised in the 1980s. They said, 'Geez – wouldn’t it be nice if you could call one number and access every taxi.' The powers that be have resisted that for many years now.\"\u003c/p>\n\u003cp>Why?\u003c/p>\n\u003cp>Hayashi says cab companies don't want to give customers to their competitors. \"To some extent it’s legitimate,\" she says. \"It’s an understandable response from businesses. But unfortunately it’s not serving the public.\"\u003c/p>\n\u003cp>Hayashi says the two smartphone apps that now dispatch taxis in San Francisco, \u003ca href=\"https://taximagic.com/en_US\" target=\"_blank\">TaxiMagic\u003c/a> and \u003ca href=\"http://www.flywheel.com/\" target=\"_blank\">Flywheel\u003c/a>, \"only recently have signed up sufficient numbers of taxis to be really effective.\" She says the SFMTA is \"working as fast as we can\" to expand the system.\u003c/p>\n\u003cp>\"I believe that if we can make all taxis available through the smartphone applications then we will be able to provide the same kind of reliability and easy electronic access that has made Lyft and Sidecar attractive to consumers,\" she says.\u003c/p>\n\u003cp>\u003cstrong>Ride-Service Drivers Dig Their Jobs\u003c/strong>\u003c/p>\n\u003cp>Driving a taxi has traditionally been a way to supplement an income or earn a living while avoiding the 9-to-5 world.\u003c/p>\n\u003cp>Newsham characterizes those who gravitate to the job as \"people who don’t quite fit in regular mainstream culture. The first thing you notice is you don't have a boss in your presence all the time, someone telling you what to do. That's really attractive.\"\u003c/p>\n\u003cp>Now, with the advent of TNCs, in which drivers can use their own vehicles as opposed to having to own or rent a licensed taxi, the profession is open to all comers. We spoke to seven of them — six from Lyft, one from Sidecar. They \u003cstrong>\u003c/strong>were all highly positive about their experiences, citing good money and the freedom to work whenever they want. The Lyft drivers were particularly enthusiastic about what they called \"Power Hours,\" peak times when they get to keep 100 percent of their earnings.\u003c/p>\n\u003cp>We're not using the last names of these drivers, for reasons we'll get to in Part 2, when we talk about the uncertainties around insurance for TNC drivers.\u003c/p>\n\u003cfigure id=\"attachment_114940\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS6938_Lyft_9oct2013_0024_web-hpf.jpg\">\u003cimg class=\"size-medium wp-image-114940\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS6938_Lyft_9oct2013_0024_web-hpf-300x200.jpg\" alt=\"James Lee fist bumps Lyft driver Alice before she takes him to work. Lee says he uses Lyft every day and prefers its convenience and reliability to public transportation.(Sara Bloomberg/KQED)\" width=\"300\" height=\"200\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">James Lee fist bumps Lyft driver Alice before she takes him to work. Lee says he uses Lyft every day and prefers its convenience and reliability to public transportation.(Sara Bloomberg/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>One Lyft driver, Mike, says he makes an average of $25-$30 per hour on weekdays, $40 on weekends. “It is very lucrative,” he says. Like all the Lyft drivers we spoke to, he had no previous experience transporting customers, but really enjoys the job. “I sit out here for six to eight hours on a shift and I drive around and I talk to people and basically have fun. I learn all the new venues to go to, I hear about restaurants I’ve never tried, I meet all kinds of interesting people. I’m basically talking all night and listening to music.”\u003c/p>\n\u003cp>He says he’s given well over 1,000 rides since he started driving for Lyft. Any problems? “We rank all our passengers on a scale of one to five based on the experience that we have with them. ... And I’ve never given anyone less than a five.”\u003c/p>\n\u003cp>One reason Mike might like his clientele so much: He can decline to pick up passengers based on how other drivers have rated them.\u003c/p>\n\u003cp>He can also bypass passengers that don’t typically tip at a certain percentage of Lyft’s suggested “donation” for each ride. That functionality helps weed out the stiffs, he says. “If you have a passenger out there that never (tips), eventually they’ll request a ride and never get one.”\u003c/p>\n\u003cp>Alice has been driving for Lyft since April. After seeing the company’s ad on Facebook, she filled out an online request for information, got a call and went for an interview. After a background check — “to make sure you’re a normal human being” — she was approved.\u003c/p>\n\u003cp>She says she was then given a one-hour orientation, and that was that — she was up and running as a professional driver. (Lyft has recently become more stringent about whom they take on, instituting a mentor system in which experienced drivers assess prospective candidates and make recommendations as to their hire. And per CPUC regulations, all TNCs will have to start training programs.)\u003c/p>\n\u003cp>Alice says she works about 20 hours per week and makes $25-$35 per hour, depending on the time of day she goes out. After 1,200 rides, she’s a big fan of Lyft, her fellow drivers, the passengers — everything. “Lyft is a great, positive community made up of a lot of good-hearted people,” she says.\u003c/p>\n\u003cp>Dan says he's been a Lyft driver since April, and his boyfriend also goes out on calls. He has a full-time job as a teacher and doesn't want to be held down to another commitment, which makes ride-service work attractive.\u003c/p>\n\u003cp>\"If I have some spare time, I’ll log into the app and get some hours,\" he says. \"I can start driving on a whim.\" Dan reports he makes anywhere from $22 to $35 an hour over the course of a four-hour shift.\u003c/p>\n\u003caside class=\"pullquote alignleft\">Many Lyft drivers say they make anywhere from $22 to $35 an hour.\u003c/aside>\n\u003cp>Jason is 26 and says he's been driving for Lyft for four months. He was unemployed when he saw the company's Facebook ad and signed up. He is pretty much working full time and estimates his earnings at $30-$35 per hour. He loves the job: \"I think it’s really fun, I meet a whole bunch of people and have great conversations every day.\"\u003c/p>\n\u003cp>One driver, who didn't want us to use even his first name, says he was one of Lyft's first 50 drivers, starting back when the company paid a flat rate of $18 per hour. He makes more than that now, no less than $25 an hour during a slow shift and always more than $30 on the weekend. He has another business, but it's not going well, and Lyft is now his main source of income.\u003c/p>\n\u003cp>He's fiercely pro-Lyft: \"For me, Lyft is a company that’s really good. They take care of their employees and their passengers. It is kind of a community.\"\u003c/p>\n\u003cp>I ask if it bothers him that he works 30 to 40 hours a week but gets no health care, workers' comp or other benefits. (\u003ca href=\"http://blogs.sfweekly.com/thesnitch/2013/09/lyft_sued_for_unfair_competiti.php\" target=\"_blank\">Lyft\u003c/a> and \u003ca href=\"http://www.sfbg.com/2013/08/27/uber-sued-denying-drivers-tips\" target=\"_blank\">Uber\u003c/a> have both been named in lawsuits that allege the companies incorrectly classify workers as independent contractors.)\u003c/p>\n\u003cp>\"We’re hoping there will be something like that in the future,\" he says.\u003c/p>\n\u003cp>(Except for workers' comp, cab drivers are in the same boat. When I asked Brad Newsham if taxi drivers get benefits like health care and vacation time, his answer was, \"Ha ha ha ha ha.\")\u003c/p>\n\u003cp>A driver for Sidecar, Jeremy, has been on the job since last Christmas. He says he makes an average of $30 an hour, driving 20-25 hours per week. He is also a big fan of this gig. \"I just had my 1,000th ride this year and I love it,\" he says. \"I meet really nice people; most of them are from the tech industry, I believe, from talking to them.\"\u003c/p>\n\u003cp>It's not surprising that these newbies to the business are excited about their jobs, Newsham says. \"I loved cab driving from the first day, period,\" he said. \"Driving around the world's prettiest city, talking to people. ... Every day, even after 28 years, I saw something new, something that took my breath away. And in the beginning it was more money than I had ever made in my life. I just fell in love with it.\"\u003c/p>\n\u003cp>But for those TNC drivers who are thinking of permanently strapping on the 'stache, Newsham has a warning: This is the honeymoon period. Driving year in and year out takes its toll. \"I worked a year-and-a-half in an underground mine. That was hard labor. I put cab driving right up there with it.\" Newsham says being wary of \"not killing somebody, not killing yourself,\" while also trying to make enough to pay the rent is extremely stressful.\u003c/p>\n\u003cp>\u003cstrong>Taxi Drivers See Income Decline\u003c/strong>\u003c/p>\n\u003cp>That last part — paying the rent — explains why taxi drivers are so worried about the TNCs. Because if ride-service drivers express an almost universal sense of happiness about the money they can make, that is coming at the expense of the traditional taxi business.\u003c/p>\n\u003cp>John Han, who's been driving a cab for 11 years, says he currently makes between $20-$35 per hour, but that pay can vary widely from driver to driver. He says one driver he recently spoke to, someone whose English wasn't great, told him that after gas and gate fees, he took home $10 \u003cem>total\u003c/em> over a Saturday and Sunday.\u003c/p>\n\u003cp>Han says that, anecdotally at least, $15-$19 per hour is more the norm for taxi drivers now. And that pay rate is going down, according to drivers who say they've taken a sharp financial hit since the surfeit of new vehicles-for-hire has hit the road.\u003c/p>\n\u003caside class=\"pullquote alignright\">Anecdotally at least, $15-$19 per hour is more the norm for taxi drivers now.\u003c/aside>\n\u003cp>Ed Healy has been driving a cab for 30 years, and he blogs about the industry and his contempt for the ride services at \u003ca href=\"http://phantomcabdriverphites.blogspot.com/\" target=\"_blank\">The Phantom Cab Driver Phites Back\u003c/a>. Healy estimates taxi driver earnings are off about 25 percent as a result of all the additional competition.\u003c/p>\n\u003cp>Newsham says he’s heard that figure from other drivers, too. Hansu Kim, owner of San Francisco’s \u003ca href=\"http://www.desotosf.com/\" target=\"_blank\">DeSoto Cab\u003c/a>, puts the drop in all taxi business citywide in the same range — anywhere from 25 to 33 percent in the past year.\u003c/p>\n\u003cp>Newsham says the “bandit cabs,” as he calls them, were the final straw in his own decision to quit the business this year. In his best years as a driver, he made $30,000 to $35,000 a year driving 20 to 30 hours a week. By the time he pocketed his last tip, he was making next to nothing — about $5 an hour — which he attributes to all the new competition. That big drop in income prompted him to sell his medallion, the permit that allows cab owners to lease out their vehicles to drivers and companies. The sale netted him $150,000.\u003c/p>\n\u003cp>“Seems like there was no choice. I had to take that 150K while it was still there,” he says, referring to the declining value of taxi ownership.\u003c/p>\n\u003cp>\u003cstrong>Some Passengers 'Have Sworn Off Cabs Forever'\u003c/strong>\u003c/p>\n\u003cp>I asked some of the ride-service drivers if they felt bad about the financial blow cab drivers have absorbed.\u003c/p>\n\u003cp>Not really, says Alice. So many of her passengers are using Lyft because they cannot get a taxi to take them to the outer areas of the city.\u003c/p>\n\u003cp>\"Most of my passengers say they cannot get a cab ride to the Outer Sunset,\" she says.\u003c/p>\n\u003cp>\"People [tell me] they've gotten kicked out of cabs, the driver says 'No, I'm about to go home so get out of my car,' or they say, 'My tire's flat, I can’t drive that way now.' I’ve heard many, many cab horror stories about how they cannot get a cab. So it's hard for me to feel sympathy for an industry that is still excluding a lot of passengers. Most of Lyft's passengers have sworn off cabs forever.\"\u003c/p>\n\u003cfigure id=\"attachment_117413\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS6006_008.jpg\">\u003cimg class=\"size-medium wp-image-117413\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS6006_008-300x200.jpg\" alt=\"TNC drivers say their passengers have sworn off cabs forever. (Deborah Svoboda/KQED)\" width=\"300\" height=\"200\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">TNC drivers say their passengers have sworn off cabs forever. (Deborah Svoboda/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>DeSoto Cab's Hansu Kim responds that, \"That's happened on occasion, but it's really not that common now.\" The SFMTA's Christiane Hayashi says the agency has adopted regulations requiring dispatch permit holders to meet minimum requirements to \"increase responsiveness to neighborhood dispatch requests,\" and that any company that fails to comply with those standards will be shut down.\u003c/p>\n\u003cp>Lyft driver Mike says he is sympathetic to cab drivers, but doesn't appreciate all the flak coming his way.\u003c/p>\n\u003cp>\"There’s some great cab drivers out there that are suffering from this, and I really hope that can come to a better place for them,\" he says. \"And for the drivers that are out there bad-mouthing us, find out the truth. They’re all out there saying we’re all uninsured and this, that and the other, and we’re horrible people and we don’t go through any training. I just tell people to do a little research before you believe everything that you read.\"\u003c/p>\n\u003cp>Brad Newsham says that while he understands the appeal of the new services, and that passengers are frustrated with the taxi industry, there is still a real human cost to the \u003ca href=\"http://www.forbes.com/sites/tomiogeron/2013/01/23/airbnb-and-the-unstoppable-rise-of-the-share-economy/\" target=\"_blank\">dislocation\u003c/a> that is occurring.\u003c/p>\n\u003cp>\"Nobody knows who these people are, the cab drivers who are getting the shaft here,\" he says. \"Nobody knows their stories. Nobody knows what they’ve been through. If you’re coming in here and you’re all gaga about your new job, you don’t know whose career you’ve just put a bullet through the head of. You get all caught up in the technology. Technology is hip, technology is cool, tech is the future. (But) what about the people?\"\u003c/p>\n\u003cp>\u003cstrong>Wanna Drive a Cab? 'Not Even.'\u003c/strong>\u003c/p>\n\u003cp>I asked some of our ride-service drivers if they'd ever thought of driving a cab, which would entail a much more involved process than signing up for ride-service work.\u003c/p>\n\u003cp>\"Not even,\" said one, which seemed to sum up the attitude of the group.\u003c/p>\n\u003cp>OK, but what about the reverse? If things are so bad in the cab industry, why don't more cab drivers, instead of protesting, make the switch to ride-service gigs?\u003c/p>\n\u003cp>Well, they are, actually, says DeSoto Cab's Kim.\u003c/p>\n\u003cp>\"My biggest concern is the shortage of (cab) drivers. A lot of the drivers are leaving the business. There’s no doubt some drivers have decided to do it on their own.\"\u003c/p>\n\u003cp>John Han, who drives for Yellow Cab, says he thinks cab companies are having a hard time filling shifts, and that a dispatcher recently told him he could work extra days without having to go through the company's lottery system. Han says he thinks \"a fair share of taxi drivers have moved to Lyft, Sidecar and UberX.\"\u003c/p>\n\u003cp>\u003cstrong>\u003c/strong>But some longtime taxi drivers who know the business inside and out think there is a serious risk that the ride-service drivers are overlooking. “I wouldn’t ever drive in one because of the insurance issue,” said Ed Healy. “I actually signed up at (Lyft and Sidecar) ... but I decided not to drive the cars after I read the terms and conditions of the contract, because I wasn’t going to leave my car exposed to an accident.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>We'll take a closer look at the insurance issues in Part Two of our series next week.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"Tensions run high as drivers from the networked ride services compete with taxis for riders in the city.","status":"publish","parent":0,"modified":1420846444,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":92,"wordCount":4294},"headData":{"title":"Will 'Ride Sharing' Kill San Francisco's Taxi Industry? | KQED","description":"Tensions run high as drivers from the networked ride services compete with taxis for riders in the city.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"114693 http://ww2.kqed.org/news/?p=114693","disqusUrl":"https://ww2.kqed.org/news/2013/11/07/need-a-lyft-or-a-taxi-the-battle-rages-on-the-streets-of-san-francisco/","disqusTitle":"Will 'Ride Sharing' Kill San Francisco's Taxi Industry? ","customPermalink":"2013/11/07/taxis-lyft-ride-service-war-on-streets-of-san-francisco/","path":"/news/114693/need-a-lyft-or-a-taxi-the-battle-rages-on-the-streets-of-san-francisco","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>With the rise of what some call the “sharing economy” — or shared access to goods, services, data and talent — many industries are facing disruption. One of those is the taxi industry, where app-based ride-service startups threaten the taxis’ entrenched business model. In the first installment of a three-part series, KQED’s Jon Brooks looks at the shakeout, assessing the risks and benefits to those who sign up as ride-service drivers vs. traditional cab drivers, and uncovers some startling signs of trouble in San Francisco.\u003c/em>\u003c/p>\n\u003cp>\u003cspan style=\"font-size: 4.6875em;float: left;line-height: 0.733em;padding: 0.05em 0.1em 0 0;font-family: times, serif, georgia\">O\u003c/span>n the streets of San Francisco, what might be called the “Mustache War” has begun, pitting the traditional taxi industry against the networked ride services like \u003ca href=\"http://www.lyft.me/\" target=\"_blank\">Lyft\u003c/a> (of the pink mustache), \u003ca href=\"http://www.side.cr/\" target=\"_blank\">Sidecar\u003c/a> and \u003ca href=\"https://www.uber.com/\" target=\"_blank\">UberX\u003c/a>. In September, the California Public Utilities Commission approved \u003ca href=\"http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M077/K112/77112285.PDF\" target=\"_blank\">regulations\u003c/a> to oversee the ride-service startups, which allow passengers to hire private drivers through smartphone apps.\u003c/p>\n\u003cp>The nascent business model has been widely called “ride-sharing,” but the CPUC said that term is a misnomer. The companies are now officially referred to as “Transportation Network Companies,” or TNCs, a term with a much less altruistic ring.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'Mustache Wars' — the conflict between the traditional taxi industry and smartphone-based ride services:\n\u003cdiv style=\"font-size: 12pt\">\n\u003cul>\n\u003cli>\u003cstrong>Part Two: \u003c/strong>\u003ca href=\"http://ww2.kqed.org/news/2013/11/14/who-pays-when-ride-share-driver-crashes\" target=\"_blank\">Confusion Over Insurance for ‘Ride-Sharing’ Drivers\u003c/a>\u003c/li>\n\u003cli>\u003cstrong>Sidebar:\u003c/strong> \u003ca href=\"http://ww2.kqed.org/news/2013/11/14/can-lyft-uberx-drivers-lose-their-insurance\" target=\"_blank\">Are Ride-Service Drivers at Risk of Losing Their Insurance?\u003c/a>\u003c/li>\n\u003cli>\u003cstrong>Part Three:\u003c/strong> \u003ca href=\"http://ww2.kqed.org/news/2013/12/11/taxi-drivers-and-whos-taking-money-out-of-their-pockets\" target=\"_blank\">Tip or Bribe? Taxi Drivers Say Illegal Payments to Dispatchers Are Routine\u003c/a>\u003c/li>\n\u003cli>\u003cstrong>Sidebar:\u003c/strong> \u003ca href=\"http://ww2.kqed.org/news/2014/12/13/the-fine-line-between-a-taxi-drivers-tip-and-a-bribe/\" target=\"_blank\">The Fine Line Between a Tip And a Bribe For Those Who Drive S.F. Taxis\u003c/a>\u003c/li>\n\u003c/ul>\n\u003c/div>\n\u003c/aside>\n\u003cp>Though the TNCs may have lost the connotative battle, they think they’ve won the war. While the new regulations require the companies to run background checks and institute training programs, offer a higher level of insurance and accommodate disabled passengers and low-income neighborhoods, they have also given the companies official legal sanction to operate.\u003c/p>\n\u003cp>That’s a far cry from a year ago, when the CPUC hit TNCs with cease-and-desist letters and fines.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>If these high-tech ride-for-hire matchmakers are the big winners in the regulatory conflict, the traditional taxi industry sees itself as decidedly on the short end.\u003c/p>\n\u003cp>In San Francisco, while the new services have helped mitigate the notoriously difficult task of finding a cab during peak hours, they have also prompted bitter protests from licensed companies and drivers, who view them as unregulated competition that has taken a big bite out of the taxi market. Before the CPUC issued its proposal in July, \u003ca href=\"http://sanfrancisco.cbslocal.com/2013/07/30/cab-drivers-hold-noisy-rally-at-san-francisco-city-hall-to-protest-rideshare/\" target=\"_blank\">hundreds of protesting drivers circled San Francisco City Hall in their taxis\u003c/a>, honking horns and calling on Mayor Ed Lee, despite his lack of jurisdiction, to kick the companies out of San Francisco.\u003c/p>\n\u003cp>\u003cstrong>Cab Industry: Personal Vehicles for Hire 'Outrageous'\u003c/strong>\u003c/p>\n\u003cp>Hansu Kim, the owner of San Francisco's DeSoto Cab and a board member of the trade group \u003ca href=\"http://tpac-ca.org/\" target=\"_blank\">Taxicab Paratransit Association of California\u003c/a>, acknowledges the CPUC’s regulations might go some way in leveling the playing field in terms of competition between the ride services and the tightly regulated cab industry.\u003c/p>\n\u003cp>But he says the rules don’t go far enough to stop the bleeding in the taxi business or to protect public safety. TPAC has \u003ca href=\"http://www.bizjournals.com/sanfrancisco/blog/2013/10/uber-lyft-sidecar-taxicab-puc.html\" target=\"_blank\">filed\u003c/a> an \u003ca href=\"http://www.taxi-library.org/cpuc-2013/rehearing-application-tpac.pdf\" target=\"_blank\">appeal\u003c/a> with the CPUC over its decision, and Kim says the industry will most likely \u003ca href=\"http://www.bizjournals.com/sanfrancisco/blog/2013/10/uberx-lyft-sidecar-andreessen-horowitz.html?page=all\" target=\"_blank\">sue\u003c/a> over its declining fortunes.\u003c/p>\n\u003caside class=\"pullquote alignright\">\"The cab industry will disappear. There will be no cab industry if this isn’t addressed.\" \u003c/aside>\n\u003cp>“I think the industry has no choice but to monetize their losses and take it to the courts,\" he says. \"I’m tightly regulated — what I can charge, the number of vehicles I can put out. They can charge what they want and put out the number of vehicles they want.\"\u003c/p>\n\u003cp>And Kim concludes: \"The idea of taking a personal car and acting like a commercial vehicle for hire is outrageous.\"\u003c/p>\n\u003cp>\"This is the same service competing for the same customers,\" says Barry Korengold, president of the \u003ca href=\"http://www.sfcda.org/\" target=\"_blank\">San Francisco Cab Drivers Association\u003c/a>. But he complains the new companies are allowed to bypass city regulations on the rates they charge, insurance, permit fees and the like.\u003c/p>\n\u003cp>Brad Newsham, who drove a cab in the city for 28 years and was also a chair of the United Taxicab Workers, says what's particularly galling is the low barrier to entry for the newbies compared to \u003ca href=\"http://www.sfmta.com/services/taxi-industry/become-taxi-driver\" target=\"_blank\">what the city requires cab drivers to go through\u003c/a>.\u003c/p>\n\u003cp>\"They didn’t have to go to cab school, didn’t have to pay for an A-card,\" Newsham says, referring to a cab-specific license that costs about $100 a year. \"They didn’t have to do all the stuff we have to do. ... I worked 20 years to get a medallion and these people walk in there and suddenly they’ve got everything I’ve got.\"\u003c/p>\n\u003cp>In its rule-making, the CPUC rejected arguments charging the TNCs with unfair competition and dismissed warnings the new services will result in a \"race toward the bottom with negative impact on safety and service.\" In fact, the commission said its rules were similar to what the San Francisco Municipal Transportation Agency already requires of cab operators\u003c/p>\n\u003cp>The way Brad Newsham sees it, regulations or not, the TNCs could finish off the cab industry.\u003c/p>\n\u003cp>\"In my estimation, it's on the verge of being wiped out,\" he says. And he thinks the Internet's so-called \"\u003ca href=\"http://www.forbes.com/sites/tomiogeron/2013/01/23/airbnb-and-the-unstoppable-rise-of-the-share-economy/\" target=\"_blank\">sharing economy\u003c/a>,\" allowing all sorts of people to transform themselves into instant entrepreneurs by \u003ca href=\"http://www.economist.com/news/leaders/21573104-internet-everything-hire-rise-sharing-economy\" target=\"_blank\">leveraging personal assets like a car or a home\u003c/a>, might put an end to the driving profession.\u003c/p>\n\u003cp>\"Maybe the cab driver as an institution is dead,\" he says.\u003c/p>\n\u003cp>That's not the only time I heard taxi industry stakeholders describe the ride services as an existential threat.\u003c/p>\n\u003cp>\"The cab industry will disappear,\" says Barry Korengold of the cab drivers association. \"There will be no cab industry if this isn’t addressed.\"\u003c/p>\n\u003cp>\u003cstrong>Giving Them the Finger\u003c/strong>\u003c/p>\n\u003cp>Besides engaging in \u003ca href=\"http://sftaxischool.com/1/post/2013/07/the-end-of-rideshare-trevor-johnson.html\" target=\"_blank\">heated rhetoric\u003c/a>, cab drivers have also taken out their frustrations on their ride-service counterparts in the street.\u003c/p>\n\u003cp>One of the Lyft drivers I spoke to said cab drivers have given him his \"fair share of the one-finger salute.\" Said another: \"I have never been harassed, but I'll admit, after reading some of the crap fellow drivers go through, I often take my mustache down when I don't have any passengers.\"\u003c/p>\n\u003cfigure id=\"attachment_117323\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS7192_IMG_9674.jpg\">\u003cimg class=\"size-medium wp-image-117323\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS7192_IMG_9674-300x200.jpg\" alt=\"Brad Newsham, a former cab driver of 28 years who was also a chair of the United Taxicab Workers. (Courtesy David Kidd)\" width=\"300\" height=\"200\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Brad Newsham, a former cab driver of 28 years who was also a chair of the United Taxicab Workers. (Courtesy David Kidd)\u003c/figcaption>\u003c/figure>\n\u003cp>Another driver said that in the course of the four months he's been working for Lyft, there have been maybe five incidents in which cab drivers have taken him on, calling him a \"whore,\" boxing in his vehicle, and taking a picture of his license plate, accompanied by a threat to send it to his insurance company.\u003c/p>\n\u003cp>That last tactic — outing ride-service drivers as commercial-vehicle operators to their insurers — is actually an official policy of the San Francisco Cab Drivers Association, says Barry Korengold. \"We're supplying [the insurance companies] with factual evidence,\" he says. “We collect the license plate numbers.\" He says so far, his group has logged 1,300 or 1,400 plates.\u003c/p>\n\u003cp>Even Newsham, an author who was once \u003ca href=\"http://www.npr.org/templates/story/story.php?storyId=1124175\" target=\"_blank\">featured on NPR\u003c/a> and comes across as relatively even-tempered, says he couldn't control himself when it came to the pink mustaches. \"I’m not a guy who flips the bird. But the last few months I was driving a cab, every time I saw one ... my hand went up. I just couldn’t stop it.\"\u003c/p>\n\u003cp>In talking to longtime cab drivers like Newsham and Korengold, I thought there might be something other than just financial self-interest involved in their extreme animosity toward ride-service drivers. I suggested to Korengold, who has been driving for 30 years, that he sounded downright \"offended\" by the newcomers, who have set up shop as professional drivers so quickly and with an almost total absence of bureaucratic hassle. He jumped on that word.\u003c/p>\n\u003cp>\"I’m \u003cem>totally\u003c/em> offended. It’s disrespectful to the occupation. It’s a dangerous occupation. Not only do you have to worry about unruly passengers, drunk drivers, it’s a backbreaking job. It’s very disrespectful to the people who are doing this for years and it makes a mockery of the occupation, and of the regulations.\"\u003c/p>\n\u003cp>\u003cstrong>Cab Industry 'Shot Itself in the Foot' \u003c/strong>\u003c/p>\n\u003cp>Some in the San Francisco taxi community admit the industry's failure to solve well-known problems, like the unavailability of cabs, have given the ride services an opening. \"I think it’s pretty clear that these new services popped up because the taxi industry did not provide service here,\" says Hansu Kim.\u003c/p>\n\u003cp>\"I gotta say, it’s a good thing for the people of San Francisco that they can get a cab more easily now,\" says Newsham. \"The one good thing about this whole thing that has happened in the past years.”\u003c/p>\n\u003caside class=\"pullquote alignright\">\"I think it’s pretty clear that these new services popped up because the taxi industry did not provide service here.\"\u003c/aside>\n\u003cp>Addressing that issue in a blog post, KQED Pop's Lizzy Acker wrote about a \u003ca href=\"http://blogs.kqed.org/pop/2013/08/13/behind-the-pink-mustache-is-lyft-good-evil-or-something-else-entirely/\">Lyft ride she took to the airport\u003c/a> in August: \"It’s convenient and personal and I actually got a timely, affordable ride, which no taxi company in SF seemed able to provide for me on a Thursday afternoon for any price.\"\u003c/p>\n\u003cp>Newsham criticizes the industry for not figuring out how to offer that kind of easy access to taxis. \"The cab industry here shot itself in the foot,\" he says. \"...It has refused to deploy dispatching innovations. It has refused to keep up with the times and the times have moved right past them.\"\u003c/p>\n\u003cp>Newsham says cab drivers have been asking for something called \"centralized dispatch\" for decades.\u003c/p>\n\u003cp>Christiane Hayashi, the SFMTA's director of Taxis and Accessible Services, elaborates: \"I think it was initially raised in the 1980s. They said, 'Geez – wouldn’t it be nice if you could call one number and access every taxi.' The powers that be have resisted that for many years now.\"\u003c/p>\n\u003cp>Why?\u003c/p>\n\u003cp>Hayashi says cab companies don't want to give customers to their competitors. \"To some extent it’s legitimate,\" she says. \"It’s an understandable response from businesses. But unfortunately it’s not serving the public.\"\u003c/p>\n\u003cp>Hayashi says the two smartphone apps that now dispatch taxis in San Francisco, \u003ca href=\"https://taximagic.com/en_US\" target=\"_blank\">TaxiMagic\u003c/a> and \u003ca href=\"http://www.flywheel.com/\" target=\"_blank\">Flywheel\u003c/a>, \"only recently have signed up sufficient numbers of taxis to be really effective.\" She says the SFMTA is \"working as fast as we can\" to expand the system.\u003c/p>\n\u003cp>\"I believe that if we can make all taxis available through the smartphone applications then we will be able to provide the same kind of reliability and easy electronic access that has made Lyft and Sidecar attractive to consumers,\" she says.\u003c/p>\n\u003cp>\u003cstrong>Ride-Service Drivers Dig Their Jobs\u003c/strong>\u003c/p>\n\u003cp>Driving a taxi has traditionally been a way to supplement an income or earn a living while avoiding the 9-to-5 world.\u003c/p>\n\u003cp>Newsham characterizes those who gravitate to the job as \"people who don’t quite fit in regular mainstream culture. The first thing you notice is you don't have a boss in your presence all the time, someone telling you what to do. That's really attractive.\"\u003c/p>\n\u003cp>Now, with the advent of TNCs, in which drivers can use their own vehicles as opposed to having to own or rent a licensed taxi, the profession is open to all comers. We spoke to seven of them — six from Lyft, one from Sidecar. They \u003cstrong>\u003c/strong>were all highly positive about their experiences, citing good money and the freedom to work whenever they want. The Lyft drivers were particularly enthusiastic about what they called \"Power Hours,\" peak times when they get to keep 100 percent of their earnings.\u003c/p>\n\u003cp>We're not using the last names of these drivers, for reasons we'll get to in Part 2, when we talk about the uncertainties around insurance for TNC drivers.\u003c/p>\n\u003cfigure id=\"attachment_114940\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS6938_Lyft_9oct2013_0024_web-hpf.jpg\">\u003cimg class=\"size-medium wp-image-114940\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS6938_Lyft_9oct2013_0024_web-hpf-300x200.jpg\" alt=\"James Lee fist bumps Lyft driver Alice before she takes him to work. Lee says he uses Lyft every day and prefers its convenience and reliability to public transportation.(Sara Bloomberg/KQED)\" width=\"300\" height=\"200\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">James Lee fist bumps Lyft driver Alice before she takes him to work. Lee says he uses Lyft every day and prefers its convenience and reliability to public transportation.(Sara Bloomberg/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>One Lyft driver, Mike, says he makes an average of $25-$30 per hour on weekdays, $40 on weekends. “It is very lucrative,” he says. Like all the Lyft drivers we spoke to, he had no previous experience transporting customers, but really enjoys the job. “I sit out here for six to eight hours on a shift and I drive around and I talk to people and basically have fun. I learn all the new venues to go to, I hear about restaurants I’ve never tried, I meet all kinds of interesting people. I’m basically talking all night and listening to music.”\u003c/p>\n\u003cp>He says he’s given well over 1,000 rides since he started driving for Lyft. Any problems? “We rank all our passengers on a scale of one to five based on the experience that we have with them. ... And I’ve never given anyone less than a five.”\u003c/p>\n\u003cp>One reason Mike might like his clientele so much: He can decline to pick up passengers based on how other drivers have rated them.\u003c/p>\n\u003cp>He can also bypass passengers that don’t typically tip at a certain percentage of Lyft’s suggested “donation” for each ride. That functionality helps weed out the stiffs, he says. “If you have a passenger out there that never (tips), eventually they’ll request a ride and never get one.”\u003c/p>\n\u003cp>Alice has been driving for Lyft since April. After seeing the company’s ad on Facebook, she filled out an online request for information, got a call and went for an interview. After a background check — “to make sure you’re a normal human being” — she was approved.\u003c/p>\n\u003cp>She says she was then given a one-hour orientation, and that was that — she was up and running as a professional driver. (Lyft has recently become more stringent about whom they take on, instituting a mentor system in which experienced drivers assess prospective candidates and make recommendations as to their hire. And per CPUC regulations, all TNCs will have to start training programs.)\u003c/p>\n\u003cp>Alice says she works about 20 hours per week and makes $25-$35 per hour, depending on the time of day she goes out. After 1,200 rides, she’s a big fan of Lyft, her fellow drivers, the passengers — everything. “Lyft is a great, positive community made up of a lot of good-hearted people,” she says.\u003c/p>\n\u003cp>Dan says he's been a Lyft driver since April, and his boyfriend also goes out on calls. He has a full-time job as a teacher and doesn't want to be held down to another commitment, which makes ride-service work attractive.\u003c/p>\n\u003cp>\"If I have some spare time, I’ll log into the app and get some hours,\" he says. \"I can start driving on a whim.\" Dan reports he makes anywhere from $22 to $35 an hour over the course of a four-hour shift.\u003c/p>\n\u003caside class=\"pullquote alignleft\">Many Lyft drivers say they make anywhere from $22 to $35 an hour.\u003c/aside>\n\u003cp>Jason is 26 and says he's been driving for Lyft for four months. He was unemployed when he saw the company's Facebook ad and signed up. He is pretty much working full time and estimates his earnings at $30-$35 per hour. He loves the job: \"I think it’s really fun, I meet a whole bunch of people and have great conversations every day.\"\u003c/p>\n\u003cp>One driver, who didn't want us to use even his first name, says he was one of Lyft's first 50 drivers, starting back when the company paid a flat rate of $18 per hour. He makes more than that now, no less than $25 an hour during a slow shift and always more than $30 on the weekend. He has another business, but it's not going well, and Lyft is now his main source of income.\u003c/p>\n\u003cp>He's fiercely pro-Lyft: \"For me, Lyft is a company that’s really good. They take care of their employees and their passengers. It is kind of a community.\"\u003c/p>\n\u003cp>I ask if it bothers him that he works 30 to 40 hours a week but gets no health care, workers' comp or other benefits. (\u003ca href=\"http://blogs.sfweekly.com/thesnitch/2013/09/lyft_sued_for_unfair_competiti.php\" target=\"_blank\">Lyft\u003c/a> and \u003ca href=\"http://www.sfbg.com/2013/08/27/uber-sued-denying-drivers-tips\" target=\"_blank\">Uber\u003c/a> have both been named in lawsuits that allege the companies incorrectly classify workers as independent contractors.)\u003c/p>\n\u003cp>\"We’re hoping there will be something like that in the future,\" he says.\u003c/p>\n\u003cp>(Except for workers' comp, cab drivers are in the same boat. When I asked Brad Newsham if taxi drivers get benefits like health care and vacation time, his answer was, \"Ha ha ha ha ha.\")\u003c/p>\n\u003cp>A driver for Sidecar, Jeremy, has been on the job since last Christmas. He says he makes an average of $30 an hour, driving 20-25 hours per week. He is also a big fan of this gig. \"I just had my 1,000th ride this year and I love it,\" he says. \"I meet really nice people; most of them are from the tech industry, I believe, from talking to them.\"\u003c/p>\n\u003cp>It's not surprising that these newbies to the business are excited about their jobs, Newsham says. \"I loved cab driving from the first day, period,\" he said. \"Driving around the world's prettiest city, talking to people. ... Every day, even after 28 years, I saw something new, something that took my breath away. And in the beginning it was more money than I had ever made in my life. I just fell in love with it.\"\u003c/p>\n\u003cp>But for those TNC drivers who are thinking of permanently strapping on the 'stache, Newsham has a warning: This is the honeymoon period. Driving year in and year out takes its toll. \"I worked a year-and-a-half in an underground mine. That was hard labor. I put cab driving right up there with it.\" Newsham says being wary of \"not killing somebody, not killing yourself,\" while also trying to make enough to pay the rent is extremely stressful.\u003c/p>\n\u003cp>\u003cstrong>Taxi Drivers See Income Decline\u003c/strong>\u003c/p>\n\u003cp>That last part — paying the rent — explains why taxi drivers are so worried about the TNCs. Because if ride-service drivers express an almost universal sense of happiness about the money they can make, that is coming at the expense of the traditional taxi business.\u003c/p>\n\u003cp>John Han, who's been driving a cab for 11 years, says he currently makes between $20-$35 per hour, but that pay can vary widely from driver to driver. He says one driver he recently spoke to, someone whose English wasn't great, told him that after gas and gate fees, he took home $10 \u003cem>total\u003c/em> over a Saturday and Sunday.\u003c/p>\n\u003cp>Han says that, anecdotally at least, $15-$19 per hour is more the norm for taxi drivers now. And that pay rate is going down, according to drivers who say they've taken a sharp financial hit since the surfeit of new vehicles-for-hire has hit the road.\u003c/p>\n\u003caside class=\"pullquote alignright\">Anecdotally at least, $15-$19 per hour is more the norm for taxi drivers now.\u003c/aside>\n\u003cp>Ed Healy has been driving a cab for 30 years, and he blogs about the industry and his contempt for the ride services at \u003ca href=\"http://phantomcabdriverphites.blogspot.com/\" target=\"_blank\">The Phantom Cab Driver Phites Back\u003c/a>. Healy estimates taxi driver earnings are off about 25 percent as a result of all the additional competition.\u003c/p>\n\u003cp>Newsham says he’s heard that figure from other drivers, too. Hansu Kim, owner of San Francisco’s \u003ca href=\"http://www.desotosf.com/\" target=\"_blank\">DeSoto Cab\u003c/a>, puts the drop in all taxi business citywide in the same range — anywhere from 25 to 33 percent in the past year.\u003c/p>\n\u003cp>Newsham says the “bandit cabs,” as he calls them, were the final straw in his own decision to quit the business this year. In his best years as a driver, he made $30,000 to $35,000 a year driving 20 to 30 hours a week. By the time he pocketed his last tip, he was making next to nothing — about $5 an hour — which he attributes to all the new competition. That big drop in income prompted him to sell his medallion, the permit that allows cab owners to lease out their vehicles to drivers and companies. The sale netted him $150,000.\u003c/p>\n\u003cp>“Seems like there was no choice. I had to take that 150K while it was still there,” he says, referring to the declining value of taxi ownership.\u003c/p>\n\u003cp>\u003cstrong>Some Passengers 'Have Sworn Off Cabs Forever'\u003c/strong>\u003c/p>\n\u003cp>I asked some of the ride-service drivers if they felt bad about the financial blow cab drivers have absorbed.\u003c/p>\n\u003cp>Not really, says Alice. So many of her passengers are using Lyft because they cannot get a taxi to take them to the outer areas of the city.\u003c/p>\n\u003cp>\"Most of my passengers say they cannot get a cab ride to the Outer Sunset,\" she says.\u003c/p>\n\u003cp>\"People [tell me] they've gotten kicked out of cabs, the driver says 'No, I'm about to go home so get out of my car,' or they say, 'My tire's flat, I can’t drive that way now.' I’ve heard many, many cab horror stories about how they cannot get a cab. So it's hard for me to feel sympathy for an industry that is still excluding a lot of passengers. Most of Lyft's passengers have sworn off cabs forever.\"\u003c/p>\n\u003cfigure id=\"attachment_117413\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS6006_008.jpg\">\u003cimg class=\"size-medium wp-image-117413\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/10/RS6006_008-300x200.jpg\" alt=\"TNC drivers say their passengers have sworn off cabs forever. (Deborah Svoboda/KQED)\" width=\"300\" height=\"200\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">TNC drivers say their passengers have sworn off cabs forever. (Deborah Svoboda/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>DeSoto Cab's Hansu Kim responds that, \"That's happened on occasion, but it's really not that common now.\" The SFMTA's Christiane Hayashi says the agency has adopted regulations requiring dispatch permit holders to meet minimum requirements to \"increase responsiveness to neighborhood dispatch requests,\" and that any company that fails to comply with those standards will be shut down.\u003c/p>\n\u003cp>Lyft driver Mike says he is sympathetic to cab drivers, but doesn't appreciate all the flak coming his way.\u003c/p>\n\u003cp>\"There’s some great cab drivers out there that are suffering from this, and I really hope that can come to a better place for them,\" he says. \"And for the drivers that are out there bad-mouthing us, find out the truth. They’re all out there saying we’re all uninsured and this, that and the other, and we’re horrible people and we don’t go through any training. I just tell people to do a little research before you believe everything that you read.\"\u003c/p>\n\u003cp>Brad Newsham says that while he understands the appeal of the new services, and that passengers are frustrated with the taxi industry, there is still a real human cost to the \u003ca href=\"http://www.forbes.com/sites/tomiogeron/2013/01/23/airbnb-and-the-unstoppable-rise-of-the-share-economy/\" target=\"_blank\">dislocation\u003c/a> that is occurring.\u003c/p>\n\u003cp>\"Nobody knows who these people are, the cab drivers who are getting the shaft here,\" he says. \"Nobody knows their stories. Nobody knows what they’ve been through. If you’re coming in here and you’re all gaga about your new job, you don’t know whose career you’ve just put a bullet through the head of. You get all caught up in the technology. Technology is hip, technology is cool, tech is the future. (But) what about the people?\"\u003c/p>\n\u003cp>\u003cstrong>Wanna Drive a Cab? 'Not Even.'\u003c/strong>\u003c/p>\n\u003cp>I asked some of our ride-service drivers if they'd ever thought of driving a cab, which would entail a much more involved process than signing up for ride-service work.\u003c/p>\n\u003cp>\"Not even,\" said one, which seemed to sum up the attitude of the group.\u003c/p>\n\u003cp>OK, but what about the reverse? If things are so bad in the cab industry, why don't more cab drivers, instead of protesting, make the switch to ride-service gigs?\u003c/p>\n\u003cp>Well, they are, actually, says DeSoto Cab's Kim.\u003c/p>\n\u003cp>\"My biggest concern is the shortage of (cab) drivers. A lot of the drivers are leaving the business. There’s no doubt some drivers have decided to do it on their own.\"\u003c/p>\n\u003cp>John Han, who drives for Yellow Cab, says he thinks cab companies are having a hard time filling shifts, and that a dispatcher recently told him he could work extra days without having to go through the company's lottery system. Han says he thinks \"a fair share of taxi drivers have moved to Lyft, Sidecar and UberX.\"\u003c/p>\n\u003cp>\u003cstrong>\u003c/strong>But some longtime taxi drivers who know the business inside and out think there is a serious risk that the ride-service drivers are overlooking. “I wouldn’t ever drive in one because of the insurance issue,” said Ed Healy. “I actually signed up at (Lyft and Sidecar) ... but I decided not to drive the cars after I read the terms and conditions of the contract, because I wasn’t going to leave my car exposed to an accident.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>We'll take a closer look at the insurance issues in Part Two of our series next week.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/114693/need-a-lyft-or-a-taxi-the-battle-rages-on-the-streets-of-san-francisco","authors":["80"],"programs":["news_6944"],"categories":["news_8","news_1397"],"tags":["news_1066","news_4524","news_38","news_3078","news_2024","news_4952","news_4953"],"featImg":"news_117417","label":"news_6944"},"news_111811":{"type":"posts","id":"news_111811","meta":{"index":"posts_1591205157","site":"news","id":"111811","score":null,"sort":[1379653254000]},"guestAuthors":[],"slug":"california-approves-regulations-for-ridesharing-companies","title":"Lyft, Uber, Sidecar Get Official Go-Ahead to Operate in California","publishDate":1379653254,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>The California Public Utilities Commission has approved regulations governing \"transportation network companies,\" formerly and informally known as the \"ride-sharing\" business. The vote was unanimous.\u003c/p>\n\u003cfigure id=\"attachment_111826\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003cimg class=\"size-medium wp-image-111826\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/09/rideshare.jpg-300x200.jpg\" alt=\"rideshare.jpg\" width=\"300\" height=\"200\">\u003cfigcaption class=\"wp-caption-text\">A protester mocks Lyft and its signature pink mustaches at a cab driver rally outside San Francisco City Hall on Tuesday, July 30. (Alex Emslie/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>The \u003ca href=\"http://ww2.kqed.org/news/2013/07/31/cpuc-rideshare-decision/\" target=\"_blank\">rules were first proposed\u003c/a> in July. A final vote was originally scheduled for Sept. 5 but was delayed, \u003ca href=\"http://www.sfexaminer.com/sanfrancisco/cpuc-delaying-vote-on-rideshare-regulations/Content?oid=2569597\" target=\"_blank\">giving hope to some in the taxi industry\u003c/a>, which vehemently opposes any official sanction of competition from what many have considered to be operating \"bandit cabs.\"\u003c/p>\n\u003cp>The new rules require TNCs to be licensed by the CPUC. They will have to run background checks on drivers, institute driver-training programs and meet expanded insurance requirements, as well as maintain a zero-tolerance policy on drugs and alcohol. There are also requirements for accommodating disabled passengers and servicing poorer neighborhoods.\u003c/p>\n\u003cp>But the advent of these services, which allow passengers to hire private drivers through online applications, has disrupted the taxi industry, and the new mandates are unlikely to appease traditional cab drivers who have seen a sharp drop in income in cities in which the companies operate.\u003c/p>\n\u003cp>TNCs like Lyft, Sidecar and Uber hailed the rules when they were first proposed, as they gave them, for the first time, the legal right to operate in California.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n","blocks":[],"excerpt":"The CPUC has approved regulations for \"transportation network companies\" like Lyft, Sidecar and Uber.","status":"publish","parent":0,"modified":1379692556,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":7,"wordCount":227},"headData":{"title":"Lyft, Uber, Sidecar Get Official Go-Ahead to Operate in California | KQED","description":"The CPUC has approved regulations for "transportation network companies" like Lyft, Sidecar and Uber.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"111811 http://ww2.kqed.org/news/?p=111811","disqusUrl":"https://ww2.kqed.org/news/2013/09/19/california-approves-regulations-for-ridesharing-companies/","disqusTitle":"Lyft, Uber, Sidecar Get Official Go-Ahead to Operate in California","customPermalink":"2013/09/19/cpuc-ridesharing/","path":"/news/111811/california-approves-regulations-for-ridesharing-companies","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>The California Public Utilities Commission has approved regulations governing \"transportation network companies,\" formerly and informally known as the \"ride-sharing\" business. The vote was unanimous.\u003c/p>\n\u003cfigure id=\"attachment_111826\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003cimg class=\"size-medium wp-image-111826\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/09/rideshare.jpg-300x200.jpg\" alt=\"rideshare.jpg\" width=\"300\" height=\"200\">\u003cfigcaption class=\"wp-caption-text\">A protester mocks Lyft and its signature pink mustaches at a cab driver rally outside San Francisco City Hall on Tuesday, July 30. (Alex Emslie/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>The \u003ca href=\"http://ww2.kqed.org/news/2013/07/31/cpuc-rideshare-decision/\" target=\"_blank\">rules were first proposed\u003c/a> in July. A final vote was originally scheduled for Sept. 5 but was delayed, \u003ca href=\"http://www.sfexaminer.com/sanfrancisco/cpuc-delaying-vote-on-rideshare-regulations/Content?oid=2569597\" target=\"_blank\">giving hope to some in the taxi industry\u003c/a>, which vehemently opposes any official sanction of competition from what many have considered to be operating \"bandit cabs.\"\u003c/p>\n\u003cp>The new rules require TNCs to be licensed by the CPUC. They will have to run background checks on drivers, institute driver-training programs and meet expanded insurance requirements, as well as maintain a zero-tolerance policy on drugs and alcohol. There are also requirements for accommodating disabled passengers and servicing poorer neighborhoods.\u003c/p>\n\u003cp>But the advent of these services, which allow passengers to hire private drivers through online applications, has disrupted the taxi industry, and the new mandates are unlikely to appease traditional cab drivers who have seen a sharp drop in income in cities in which the companies operate.\u003c/p>\n\u003cp>TNCs like Lyft, Sidecar and Uber hailed the rules when they were first proposed, as they gave them, for the first time, the legal right to operate in California.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/111811/california-approves-regulations-for-ridesharing-companies","authors":["80"],"programs":["news_6944"],"categories":["news_8","news_1397"],"tags":["news_4524","news_4658","news_3078","news_4523"],"featImg":"news_111826","label":"news_6944"},"news_110042":{"type":"posts","id":"news_110042","meta":{"index":"posts_1591205157","site":"news","id":"110042","score":null,"sort":[1378412162000]},"guestAuthors":[],"slug":"ride-share-services-hit-with-complaints-from-their-drivers","title":"Ride-Share Companies Hit With Lawsuits From Their Drivers","publishDate":1378412162,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cfigure id=\"attachment_105244\" class=\"wp-caption alignright\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/2013/07/31/how-the-cpucs-new-rules-will-affect-ridesharing-startups/lyftstache/\" rel=\"attachment wp-att-105244\">\u003cimg class=\"size-full wp-image-105244 \" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/07/lyftstache.png\" alt=\"Ride-share company Lyft is the subject of a class action complaint. (Photo courtesy of Lyft).\" width=\"640\" height=\"646\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Ride-share company Lyft is the subject of a class-action complaint. (Photo courtesy of Lyft)\u003c/figcaption>\u003c/figure>\n\u003cp>Pink-mustachioed ride-share firm Lyft is facing a federal class-action lawsuit from drivers who say they're being misclassified as independent contractors and that the company improperly takes a cut of the \"gratuity\" passengers give drivers. Lyft is the second of the new wave ride-sharing services to face a class-action suit. Last month, \u003ca href=\"http://www.sfgate.com/business/article/Uber-drivers-file-class-action-suit-over-tips-4778315.php\" target=\"_blank\">a suit was filed\u003c/a> against Uber, targeting the company's policy on tips. \u003c/p>\n\u003cp>Lyft, Uber, Sidecar and other ride-share services argue that, unlike traditional cab companies with an employed labor force, their only products are apps, and their only function is to connect drivers to passengers. Drivers provide their own cars and gas, and their own insurance policies (though the ride-share services provide additional coverage for excess liability).\u003c/p>\n\u003cp>In its story on the Lyft lawsuit, filed in federal court in San Francisco, \u003ca href=\"http://blogs.sfweekly.com/thesnitch/2013/09/lyft_sued_for_unfair_competiti.php\" target=\"_blank\">SF Weekly reports\u003c/a> that plaintiffs argue drivers are company employees and should be protected by the California Labor Code. The story continues: \u003c/p>\n\u003cblockquote>\u003cp>[The suit says] Lyft should be prohibited from skimming 20 percent from drivers' gratuities, and it should provide wage statements that accurately reflect the number of hours that each driver worked. It should also reimburse drivers for mileage...\u003c/p>\n\u003cp>The suit demands $4.5 million in classwide damages, based on calculations that most drivers average $15 per tip, and Lyft filches 20 percent of that.\u003c/p>\u003c/blockquote>\n\u003cp>\u003c!--more-->The plaintiffs and their S.F.-based lawyer, Matthew Carlson, are also seeking an estimated $2 million in derelict wage statements, and $4.5 million in mileage costs for the 1.5 million Lyft rides that have occurred so far.\u003c/p>\n\u003cp>Lyft described the legal action against the company as \"without merit.\" Uber dismissed the suit it's facing as \"frivolous.\" \u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The ride-share industry has exploded in the last year. Uber alone now operates in 40 cities across the country. It recently raised $258 million in funding from Google Ventures and TPG Capital, valuing the company at $3.5 billion. It also hired away high-profile executives from Google, Facebook and Klout.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The California Public Utilities Commission proposed a \u003ca href=\"http://ww2.kqed.org/news/2013/07/31/how-the-cpucs-new-rules-will-affect-ridesharing-startups\">set of rules\u003c/a> for ride-share companies—insurance requirements, driver background checks and drug tests, among other proposals.. The CPUC also put ride-share companies under a new legal label: transportation network companies, or TNCs—not taxis. It is \u003ca href=\"http://www.sfexaminer.com/sanfrancisco/cpuc-delaying-vote-on-rideshare-regulations/Content?oid=2569597\" target=\"_blank\">scheduled\u003c/a> to vote on the proposal Sept. 19.\u003c/p>\n\n","blocks":[],"excerpt":"Are ride-share services just apps connecting drivers to passengers? Or are the drivers employees?","status":"publish","parent":0,"modified":1378504099,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":11,"wordCount":414},"headData":{"title":"Ride-Share Companies Hit With Lawsuits From Their Drivers | KQED","description":"Are ride-share services just apps connecting drivers to passengers? Or are the drivers employees?","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"110042 http://ww2.kqed.org/news/?p=110042","disqusUrl":"https://ww2.kqed.org/news/2013/09/05/ride-share-services-hit-with-complaints-from-their-drivers/","disqusTitle":"Ride-Share Companies Hit With Lawsuits From Their Drivers","customPermalink":"2013/09/05/110042/rideshare-Lyft-Uber-lawsuit/","path":"/news/110042/ride-share-services-hit-with-complaints-from-their-drivers","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_105244\" class=\"wp-caption alignright\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/2013/07/31/how-the-cpucs-new-rules-will-affect-ridesharing-startups/lyftstache/\" rel=\"attachment wp-att-105244\">\u003cimg class=\"size-full wp-image-105244 \" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/07/lyftstache.png\" alt=\"Ride-share company Lyft is the subject of a class action complaint. (Photo courtesy of Lyft).\" width=\"640\" height=\"646\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Ride-share company Lyft is the subject of a class-action complaint. (Photo courtesy of Lyft)\u003c/figcaption>\u003c/figure>\n\u003cp>Pink-mustachioed ride-share firm Lyft is facing a federal class-action lawsuit from drivers who say they're being misclassified as independent contractors and that the company improperly takes a cut of the \"gratuity\" passengers give drivers. Lyft is the second of the new wave ride-sharing services to face a class-action suit. Last month, \u003ca href=\"http://www.sfgate.com/business/article/Uber-drivers-file-class-action-suit-over-tips-4778315.php\" target=\"_blank\">a suit was filed\u003c/a> against Uber, targeting the company's policy on tips. \u003c/p>\n\u003cp>Lyft, Uber, Sidecar and other ride-share services argue that, unlike traditional cab companies with an employed labor force, their only products are apps, and their only function is to connect drivers to passengers. Drivers provide their own cars and gas, and their own insurance policies (though the ride-share services provide additional coverage for excess liability).\u003c/p>\n\u003cp>In its story on the Lyft lawsuit, filed in federal court in San Francisco, \u003ca href=\"http://blogs.sfweekly.com/thesnitch/2013/09/lyft_sued_for_unfair_competiti.php\" target=\"_blank\">SF Weekly reports\u003c/a> that plaintiffs argue drivers are company employees and should be protected by the California Labor Code. The story continues: \u003c/p>\n\u003cblockquote>\u003cp>[The suit says] Lyft should be prohibited from skimming 20 percent from drivers' gratuities, and it should provide wage statements that accurately reflect the number of hours that each driver worked. It should also reimburse drivers for mileage...\u003c/p>\n\u003cp>The suit demands $4.5 million in classwide damages, based on calculations that most drivers average $15 per tip, and Lyft filches 20 percent of that.\u003c/p>\u003c/blockquote>\n\u003cp>\u003c!--more-->The plaintiffs and their S.F.-based lawyer, Matthew Carlson, are also seeking an estimated $2 million in derelict wage statements, and $4.5 million in mileage costs for the 1.5 million Lyft rides that have occurred so far.\u003c/p>\n\u003cp>Lyft described the legal action against the company as \"without merit.\" Uber dismissed the suit it's facing as \"frivolous.\" \u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The ride-share industry has exploded in the last year. Uber alone now operates in 40 cities across the country. It recently raised $258 million in funding from Google Ventures and TPG Capital, valuing the company at $3.5 billion. It also hired away high-profile executives from Google, Facebook and Klout.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The California Public Utilities Commission proposed a \u003ca href=\"http://ww2.kqed.org/news/2013/07/31/how-the-cpucs-new-rules-will-affect-ridesharing-startups\">set of rules\u003c/a> for ride-share companies—insurance requirements, driver background checks and drug tests, among other proposals.. The CPUC also put ride-share companies under a new legal label: transportation network companies, or TNCs—not taxis. It is \u003ca href=\"http://www.sfexaminer.com/sanfrancisco/cpuc-delaying-vote-on-rideshare-regulations/Content?oid=2569597\" target=\"_blank\">scheduled\u003c/a> to vote on the proposal Sept. 19.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/110042/ride-share-services-hit-with-complaints-from-their-drivers","authors":["237"],"programs":["news_6944"],"categories":["news_8","news_1397"],"tags":["news_4524","news_3078","news_4523"],"featImg":"news_105244","label":"news_6944"},"news_105242":{"type":"posts","id":"news_105242","meta":{"index":"posts_1591205157","site":"news","id":"105242","score":null,"sort":[1375369772000]},"guestAuthors":[],"slug":"how-the-cpucs-new-rules-will-affect-ridesharing-startups","title":"How the CPUC's New Rules Will Affect Ride-sharing Startups","publishDate":1375369772,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cfigure id=\"attachment_105244\" class=\"wp-caption alignleft\" style=\"max-width: 297px\">\u003ca href=\"http://ww2.kqed.org/news/2013/07/31/analysis-effects-of-cpucs-new-rules-on-rideshare-startups/lyftstache/\" rel=\"attachment wp-att-105244\">\u003cimg class=\"size-medium wp-image-105244 \" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/07/lyftstache-297x300.png\" alt=\"Rideshare companies like Lyft, which attaches pink mustaches to its drivers' cars, are subject to new proposed regulations by the state PUC. (Photo courtesy of Lyft).\" width=\"297\" height=\"300\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Ride-share companies like Lyft, which attaches pink mustaches to its drivers' cars, are subject to new proposed regulations by the CPUC. (Photo courtesy of Lyft)\u003c/figcaption>\u003c/figure>\n\u003cp>When the California Public Utilities Commission (CPUC) \u003ca href=\"http://ww2.kqed.org/news/2013/07/31/cpuc-rideshare-decision/\">proposed\u003c/a> new rules on Tuesday to govern the emerging ride-sharing startups, many of which are headquartered in San Francisco, the news was greeted as a victory by Lyft, Sidecar and Uber.\u003c/p>\n\u003cp>And it \u003cem>is\u003c/em> a victory, since as recently as last fall, the companies were facing cease-and-desist orders and stiff fines from the CPUC and other regulatory agencies around the country.\u003c/p>\n\u003cp>The proposed new rules, if adopted in September, will bring the booming ride-share sector under strict regulatory control, making it legal but also subjecting it to some new conditions and challenges.\u003c!--more-->\u003c/p>\n\u003cp>The companies will be classified as Transportation Network Companies (TNCs), which are defined as those that provide \"transportation services using an online-enabled platform to connect passengers with drivers using their personal, non-commercial, vehicles.\"\u003c/p>\n\u003cp>Among the new requirements facing the TNCs will be ensuring that disabled riders are adequately served and that people in poor neighborhoods do not end up being “red-lined” from access to the rides that they need.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>CPUC’s Marzia Zafar told KQED’s Katrina Schwartz, “We want to make sure that these new companies provide accessible transportation for the disabled community. So we've put in some rules and regulations to ensure that the disabled community is not left behind if this new mode of transportation begins to grow rapidly.”\u003c/p>\n\u003cp>The rules would require ride-share companies to provide incentives to attract specially-outfitted vehicles to their fleets and report annually on the demand for them.\u003c/p>\n\u003cp>Sunil Paul, CEO of Sidecar, told KQED News that his company will be able to comply with the new regulations: “We’ve recently made a number of usability fixes for visually impaired passengers, based on feedback from blind and low-vision app testers. We hear from our riders all the time that one of the reasons they love ride-share is that they can get a ride from Sidecar in parts of the city where cabs are not available. And we'll continue our efforts to expand ride-share to underserved and disabled users.”\u003c/p>\n\u003cp>Lyft co-founder John Zimmer said, \"We have always had accessibility issues in mind in the way engineers build our technology. It is in line with the core values of our company.\"\u003c/p>\n\u003cp>As for serving poor neighborhoods, Zimmer added, \"We are doing everything we can to make sure we are serving as much of the population as possible.\"\u003c/p>\n\u003cp>Another key aspect of the proposed new rules is that CPUC has decided that the \"voluntary reimbursements\" for costs that Lyft and Sidecar riders pay to drivers (according to suggested amounts inside the app) are actually revenue earned by the drivers (and the companies, which take a percentage).\u003c/p>\n\u003cp>We asked Paul whether this will alter the company’s business model.\u003c/p>\n\u003cp>“It doesn’t. We built our business on the principles of ride-share. Our drivers love that they can drive when they want and that they have the ability to make some cash on the side. This helps them cover the cost of owning a car or pay off student loans or even realize a dream like starting a new business.”\u003c/p>\n\u003cp>Zimmer said Lyft already issues 1099K forms to drivers who earn above the IRS threshold as drivers, so this part of the CPUC rules will not affect his company's operations at all.\u003c/p>\n\u003cp>Probably the most recognizable TNCs on the streets of San Francisco and other cities are Zimmer's Lyft cars, which sport bright pink mustaches, known as Lyftaches. These were widely considered a clever marketing gimmick, but now the CPUC is proposing to make such identifiable symbols mandatory for TNCs:\u003c/p>\n\u003cp>\"TNC vehicles shall display consistent trade dress (i.e., distinctive signage or display on the vehicle) when providing TNC services. The trade dress shall be sufficient to allow a passenger, government official, or member of the public to associate a vehicle with a particular TNC (or licensed transportation provider). Acceptable forms of trade dress include, but are not limited to, symbols or signs on vehicle doors, roofs, or grills. Magnetic or removable trade dress is acceptable. TNC shall file a photograph of their trade dress with the Safety and Enforcement Division.\"\u003c/p>\n\u003cp>One thing neither Sidecar's Paul nor Lyft's Zimmer could confirm were news reports that some ride-share drivers have been arrested by airport police at SFO. Both execs said they know of no such arrests that have occurred to date.\u003c/p>\n\u003cp> \u003c/p>\n\u003cp>\u003c/p>\n\u003cp> \u003c/p>\n\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1375394685,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":19,"wordCount":787},"headData":{"title":"How the CPUC's New Rules Will Affect Ride-sharing Startups | KQED","description":"When the California Public Utilities Commission (CPUC) proposed new rules on Tuesday to govern the emerging ride-sharing startups, many of which are headquartered in San Francisco, the news was greeted as a victory by Lyft, Sidecar and Uber. And it is a victory, since as recently as last fall, the companies were facing cease-and-desist orders","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"105242 http://ww2.kqed.org/news/?p=105242","disqusUrl":"https://ww2.kqed.org/news/2013/08/01/how-the-cpucs-new-rules-will-affect-ridesharing-startups/","disqusTitle":"How the CPUC's New Rules Will Affect Ride-sharing Startups","customPermalink":"2013/07/31/how-the-cpucs-new-rules-will-affect-ridesharing-startups/","path":"/news/105242/how-the-cpucs-new-rules-will-affect-ridesharing-startups","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_105244\" class=\"wp-caption alignleft\" style=\"max-width: 297px\">\u003ca href=\"http://ww2.kqed.org/news/2013/07/31/analysis-effects-of-cpucs-new-rules-on-rideshare-startups/lyftstache/\" rel=\"attachment wp-att-105244\">\u003cimg class=\"size-medium wp-image-105244 \" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/07/lyftstache-297x300.png\" alt=\"Rideshare companies like Lyft, which attaches pink mustaches to its drivers' cars, are subject to new proposed regulations by the state PUC. (Photo courtesy of Lyft).\" width=\"297\" height=\"300\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Ride-share companies like Lyft, which attaches pink mustaches to its drivers' cars, are subject to new proposed regulations by the CPUC. (Photo courtesy of Lyft)\u003c/figcaption>\u003c/figure>\n\u003cp>When the California Public Utilities Commission (CPUC) \u003ca href=\"http://ww2.kqed.org/news/2013/07/31/cpuc-rideshare-decision/\">proposed\u003c/a> new rules on Tuesday to govern the emerging ride-sharing startups, many of which are headquartered in San Francisco, the news was greeted as a victory by Lyft, Sidecar and Uber.\u003c/p>\n\u003cp>And it \u003cem>is\u003c/em> a victory, since as recently as last fall, the companies were facing cease-and-desist orders and stiff fines from the CPUC and other regulatory agencies around the country.\u003c/p>\n\u003cp>The proposed new rules, if adopted in September, will bring the booming ride-share sector under strict regulatory control, making it legal but also subjecting it to some new conditions and challenges.\u003c!--more-->\u003c/p>\n\u003cp>The companies will be classified as Transportation Network Companies (TNCs), which are defined as those that provide \"transportation services using an online-enabled platform to connect passengers with drivers using their personal, non-commercial, vehicles.\"\u003c/p>\n\u003cp>Among the new requirements facing the TNCs will be ensuring that disabled riders are adequately served and that people in poor neighborhoods do not end up being “red-lined” from access to the rides that they need.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>CPUC’s Marzia Zafar told KQED’s Katrina Schwartz, “We want to make sure that these new companies provide accessible transportation for the disabled community. So we've put in some rules and regulations to ensure that the disabled community is not left behind if this new mode of transportation begins to grow rapidly.”\u003c/p>\n\u003cp>The rules would require ride-share companies to provide incentives to attract specially-outfitted vehicles to their fleets and report annually on the demand for them.\u003c/p>\n\u003cp>Sunil Paul, CEO of Sidecar, told KQED News that his company will be able to comply with the new regulations: “We’ve recently made a number of usability fixes for visually impaired passengers, based on feedback from blind and low-vision app testers. We hear from our riders all the time that one of the reasons they love ride-share is that they can get a ride from Sidecar in parts of the city where cabs are not available. And we'll continue our efforts to expand ride-share to underserved and disabled users.”\u003c/p>\n\u003cp>Lyft co-founder John Zimmer said, \"We have always had accessibility issues in mind in the way engineers build our technology. It is in line with the core values of our company.\"\u003c/p>\n\u003cp>As for serving poor neighborhoods, Zimmer added, \"We are doing everything we can to make sure we are serving as much of the population as possible.\"\u003c/p>\n\u003cp>Another key aspect of the proposed new rules is that CPUC has decided that the \"voluntary reimbursements\" for costs that Lyft and Sidecar riders pay to drivers (according to suggested amounts inside the app) are actually revenue earned by the drivers (and the companies, which take a percentage).\u003c/p>\n\u003cp>We asked Paul whether this will alter the company’s business model.\u003c/p>\n\u003cp>“It doesn’t. We built our business on the principles of ride-share. Our drivers love that they can drive when they want and that they have the ability to make some cash on the side. This helps them cover the cost of owning a car or pay off student loans or even realize a dream like starting a new business.”\u003c/p>\n\u003cp>Zimmer said Lyft already issues 1099K forms to drivers who earn above the IRS threshold as drivers, so this part of the CPUC rules will not affect his company's operations at all.\u003c/p>\n\u003cp>Probably the most recognizable TNCs on the streets of San Francisco and other cities are Zimmer's Lyft cars, which sport bright pink mustaches, known as Lyftaches. These were widely considered a clever marketing gimmick, but now the CPUC is proposing to make such identifiable symbols mandatory for TNCs:\u003c/p>\n\u003cp>\"TNC vehicles shall display consistent trade dress (i.e., distinctive signage or display on the vehicle) when providing TNC services. The trade dress shall be sufficient to allow a passenger, government official, or member of the public to associate a vehicle with a particular TNC (or licensed transportation provider). Acceptable forms of trade dress include, but are not limited to, symbols or signs on vehicle doors, roofs, or grills. Magnetic or removable trade dress is acceptable. TNC shall file a photograph of their trade dress with the Safety and Enforcement Division.\"\u003c/p>\n\u003cp>One thing neither Sidecar's Paul nor Lyft's Zimmer could confirm were news reports that some ride-share drivers have been arrested by airport police at SFO. Both execs said they know of no such arrests that have occurred to date.\u003c/p>\n\u003cp> \u003c/p>\n\u003cp>\u003c/p>\n\u003cp> \u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/105242/how-the-cpucs-new-rules-will-affect-ridesharing-startups","authors":["223"],"programs":["news_6944"],"categories":["news_8","news_1397"],"tags":["news_1066","news_4660","news_3078","news_4659"],"featImg":"news_105244","label":"news_6944"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. 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