Both Uber and Lyft are still operating in Tampa Bay and will continue to do so. But if the pending PTC regulations are enacted and enforced, riders on one side of the bay could be out of luck. Uber wouldn’t be able to operate under the PTC’s rules, said Bill Gibbons, a spokesman for Uber.
“If the rules that the PTC advanced were put into place and fully implemented, it would push ridesharing companies like Uber out of Hillsborough County,” said Gibbons.
These regulations include mandates for fingerprint-based background checks, vehicle inspections, insurance coverage as required by current state law, a 10-year vehicle age limit and a cap on surge pricing (the controversial practice of charging higher rates when rider demand is higher) of no more than 10 times the current rate — and a moratorium on such pricing in the case of an emergency situation. The PTC board decided not to add the controversial $7 minimum fare and mandatory seven-minute minimum wait time to the regulations.
Those who favor the rules maintain that it's about rider safety as well as creating a level playing field for everyone who operates a car for hire — namely taxi cabs and limo services, which the PTC also regulates (cab companies, of course, have come out in full force against Uber, which typically charges riders significantly less than taxicabs do).
But those who want the agency to back down say such rules create a barrier of entry to the free market and are simply intended to protect the status quo.
“Uber and Lyft, the push to ban them, is really something that we have seen time and again throughout history," said Abigail Blanco, an assistant professor of economics at University of Tampa, "when you have a new technology that becomes available that threatens, basically, the old technology that people have been using for a long time. You saw this with cars when they were replacing the horse and buggy. Or you saw this with light bulbs when they were replacing candles.”
Rideshare advocates are continuing their fight against the proposed rules, and even if they pass, there's a good chance it won't spell the end for the service.
What comes next
On October 13, the PTC plans on holding a public hearing to finalize the rules. If the ridesharing regulations are finalized during that meeting, which is likely, the companies that object to the rules can file a challenge with the PTC to have a hearing in which they'll again argue against the new rules.
If the PTC board chooses to stick to its decision (also likely), then ridesharing companies can file an appeal with the Florida Department of Administrative Hearings. It's not an ideal scenario for regulators, said PTC Executive Director Kyle Cockream, since it could gum up the gears for some time.
“If Uber and Lyft file a challenge to these rules, it could tie it up for months and well into next year,” said Cockream. “As long as it's being appealed, we can't adopt and enforce them.”
Fingerprint-based background checks & public safety
Both Uber and Lyft oppose the Level II fingerprint-based background checks. Both companies currently conduct Level I background checks, which an Uber spokesman said is a background and employment history check and Social Security number trace conducted at the local, state and federal level.
Fingerprint background checks are difficult to implement due to the financial cost it would impose on drivers, possible barriers it could create and the outdated technology used to process the fingerprints, said Brian Chapman CEO at MBI Worldwide, a company that runs background and fingerprint checks for companies nationwide.
Fingerprinting has a disparate impact and would be unfair to minority applicants, said Chapman, who are statistically more likely to have been arrested and even if they weren't found guilty, were likely fingerprinted.
“More minorities have arrest records so they're more likely not to get approved by the PTC,” Chapman said. “They’re getting all of these records where there are no convictions.”
Chapman also calls fingerprinting “inefficient, archaic and troublesome.”
“It's very difficult for a person to go get fingerprinted. It's not easy. It's time-consuming and it's usually $80,” said Chapman. “Level I background checks average $20 to $40. They're cheap.”
If the PTC regulations are implemented, the cost of fingerprinting incurred by drivers could be prohibitive. Many could have to take time off from work, find a location in the area with a live scan fingerprinting machine and pay for the screening to be conducted.
But Cockream says he offered to have the PTC bear the entire financial cost of having fingerprints done for Uber and Lyft drivers over a year ago, and the companies declined.
“There hasn't been any compromise,” he said. “The only compromise that Uber's been willing to have is that they want their business model and their business model only.”
Open Tampa Bay market for other ridesharing companies
With the recent approval of the PTC regulations, the board is creating the opportunity for other ridesharing companies to come and operate legally in the Tampa Bay market, said Cockream.
“Whatever regulatory framework gets in place, whether it's local or at a state level, it should be a regulatory framework or a market should be created to invite and stimulate all companies coming here. It should not be an Uber market,” said Cockream.
Drive Society is one ridesharing startup preparing to launch its mobile app in Tampa Bay in October. Drive Society offers similar services to Uber and Lyft, said CEO Marcus Carter. One of the key differences is that Drive Society performs fingerprint-based background checks on its potential drivers.
Michael Leto, CEO for ridesharing company Fare, which operates in Austin, Texas (a city Uber recently left after a similar battle with local regulators), spoke at a recent PTC meeting. Although Fare also performs fingerprint background checks on its drivers, Leto said Fare wouldn’t enter the Tampa Bay area market if it’s competing with companies that are not complying with the same rules.
“If it was enforced that fingerprinting was required in order for transportation network companies to operate in the county or the city, then we would be here in a heartbeat,” Leto said.
Uber’s alternative
Uber is offering to provide the PTC with a Temporary Operating Agreement (TOA), which would allow the company to operate legally in Hillsborough County pending state-level legislation. The agreement would be in line with a law passed in 36 states and dozens of other jurisdictions across the country, including Miami-Dade, Broward and Palm Beach Counties, as well as the cities of Tallahassee and Gainesville.
Such a law may also be brewing, once again, at the state level.
State Sen. Jeff Brandes, R-St. Petersburg, said he plans on filing a bill that would create statewide rules regarding background checks for rideshare operators.
“We're going to work the next few weeks and months to get the Young Republican groups, the Young Democrats, both party organizations, the chambers of commerce, all engaged in this issue. The problem with what the PTC is proposing is that it will have a regional impact,” he said. “We can't just have one county that is dictating what the region can do as far as ridesharing, but that's what's starting to occur.”
Brandes fought for such regulations during prior legislative sessions, but has been blocked. It's looking good this year, though. As chair of the Senate's Transportation and Infrastructure Committee, State Sen. Arthenia Joyner, D-Tampa, killed the bill earlier this year. But Joyner is terming out ahead of the next session. State Rep. Darryl Rouson, effectively elected to the seat Aug. 30, is her replacement, and he doesn't appear to be an opponent of rideshare companies. Though, as of deadline, it is unclear who will chair that committee during next session.
“I guess we're going to have to wait and see to what extent it's going to be addressed,” Cockream said. “If the State of Florida enacts a law that basically preempts local government in dealing with ride-sharing type services, then we will certainly stand by and I, as long as I'm here, will support whatever the state law is, whether it's preempting us entirely or whatever.”
In the meantime, the TOA includes state, local, and federal criminal background screenings, motor vehicles records checks and $1 million of commercial auto liability insurance for every Uber driver. With the TOA, the PTC would have oversight with biannual auditing authority to ensure that Uber is abiding to the terms of the agreement.
Although the PTC has not received the TOA from Uber, Cockream says the commission is looking forward to seeing Uber’s proposal.
“We welcome any kind of Temporary Operating Agreement proposal Uber might have,” said Cockream. “We're pretty open-minded about it and would love to take a look at it.”
Uber said the company is also open to working with any PTC commissioners who want to put forth the agreement that “protects the public, expands economic opportunity and gives people more transportation options,” said Bill Gibbons, the Uber spokesman.
“We're willing to work with any PTC commissioners that want to advance those goals and work for something that can be agreed upon by all parties in a Temporary Operating Agreement,” said Gibbons. “We sincerely hope that enough members will work with us on that.”
As of right now, Uber and Lyft will continue operating in Hillsborough County. It could be months before any PTC regulations are enacted because the rules have to be finalized, which could then be legally challenged by Uber or Lyft. If PTC does enact and enforce the regulations, Uber has said it will likely leave the Tampa Bay market, though other ridesharing companies could choose to operate in Tampa Bay.
If Uber were to leave, advocates like Sen. Brandes say it would mar the region's reputation — and its economy.
“This really isn't about Uber and Lyft. This is about lowering the cost of entry for every other business that wants to come in and provide this type of service. They want to come out and consistently raise the bar and make it harder for businesses to come into Tampa Bay… That's the wrong message,” Brandes said. “If Hillsborough County goes the way of Austin, that would be, I think, a major hit to the region as far as our reputation for innovation and wanting to do business.”
CL's Kate Bradshaw contributed to this story.
This article appears in Sep 22-29, 2016.