Part of the new CPUC regulations require companies to maintain a million dollar per incident insurance on each vehicle in this new “TNC’ classification (for "Transportation Network Company"). The CPUC says that Lyft and Uber have already been doing so under an agreement that has kept them operating pending these new regulations, though neither driver I talked to felt confident about that and knew their personal insurance would not cover any incident occurring while they were driving professionally.
Jess personally says she gets “flipped off by cab drivers. I just smile at them. I kind of empathize with their position but the stories I hear of bad experiences with SF cabbies—they are not nice, demand cash, don’t show up—honestly I feel they created this situation themselves, they created a need for a new system.”
The cruel market forces of the apps make drivers obsessed with perfection. Both services have public passenger ratings of drivers and anything even slightly less than a perfect five can harm their ability to get riders. Tim and Jess both say that the fact that they don’t have visible running meters—which would make them taxis—means there can sometimes be real sticker shock for Uber riders, or a recommended price that strikes the rider as too large, for Lyft. In the information-rich world of Lyft, if you have a record of paying less than 80 percent or so of the recommended donation, drivers may decide to not bother picking you up. Jess says “that little tidbit needs to be out there. Passengers should know that if they pay much less than recommended, they do hurt themselves.”
CPUC’s regulations are not designed to make these services impossible. They will, to
quote the regulations, “require a criminal background checks for each driver, establish a driver training program, implement a zero-tolerance policy on drugs and alcohol, and require insurance coverage” and make drivers “register in the Department of Motor Vehicle (DMV) Pull Notice program, conduct a 19-point car inspection, and require a one-year driving history from the driver.” Many words in the regulations are concerned with making sure the app-driven driving services are sufficiently accessible to the disabled. The TNCs must pick up only prearranged fares via apps, never street hails.
The new regulations requirement for registering as a TNC will not go into effect for 60 days after their September 19
th issuance, so both drivers say they haven’t yet been affected by them. The regulations and
the medallion system for regular cab drivers discouraged Tim from entering that system. But even getting his state charter party carrier license to be an official limo driver for the UberBlack service, “you couldn’t get any more anti-big government after trying to go through all that bureaucratic red tape” —cost many months and many thousands of dollars, he says.
“I’ve had this conversation with a few passengers,” Tim says. “I used to be a lifelong Democrat, but I’m probably voting Libertarian now, to be honest. I’m starting to feel the pains of Joe the Plumber—it’s like I’m Tim the Driver.” But even after they are fully regulated, forget about one of the most lucrative services for hired drivers in urban areas, airport drop offs and pickups. Those are still illegal unless you go through another time-consuming wait to get approved by the airport authorities, and give them their substantial cut.