rideshare

Virginia Repeals Ban on Uber and Lyft

By Ethan Rothstein

UberX driver in Rosslyn(Updated at 4:35 p.m.) Ridesharing services Uber and Lyft again can legally operate in Virginia, despite protests from taxi companies and cab drivers.

Gov. Terry McAuliffe and Attorney General Mark Herring announced today that they reached an agreement with the two smartphone transportation companies with stipulations that will allow them to operate in Virginia. The conditions “will help ensure the safety of passengers, bring the companies into compliance with Virginia law, provide transparency into their operations, and promote a level playing field for transportation providers,” according to a press release.

The state Department of Motor Vehicles issued a cease-and-desist order to the companies on June 5 for doing business in Virginia without an operating permit. Uber and Lyft have continued to operate in the state, including in Arlington, which has led to protests from taxi drivers and a lawsuit from taxi companies. The decision to allow the companies to operate did not come with a penalty for flouting the cease-and-desist order for two months.

“In order for Virginia to remain economically competitive, it is important that we welcome innovative companies like Uber and Lyft and provide them with the resources they need to safely and effectively operate in the Commonwealth,” McAuliffe said in the release.

McAuliffe’s office also announced it has authorized a study on how best to permanently allow Uber and Lyft to operate in Virginia without disrupting competitive balance with the traditional taxi companies and providing safety for its passengers. The study is expected to conclude by the 2015 legislative session, when McAuliffe hopes a bill will be introduced to codify the agreement.

The eight Northern Virginia taxi companies — including Arlington Blue Top Cab — that are suing to for an injunction against Uber and Lyft, issued a statement responding to McAuliffe’s decision, saying they “objected strongly” to the ruling.

“Today’s issuance of temporary authority to an out-of-state carrier is both unprecedented and illegal,” Northern Virginia Checkered Cab owner Spencer Kimball said in the statement. “Under state law, the DMV was not even permitted to consider this application, considering that Uber and Lyft had been openly boasting that they were not following the ‘cease and desist’ from the DMV — and had no intention to do so. As the Chief Law Enforcement Officer of Virginia, the Attorney General should be enforcing the laws, not promoting a double standard for well-connected Silicon Valley companies.”

The conditions of the temporary operating authority, per the press release, must be met or either company would have its temporary license revoked. They are:

  • Extensive background checks of drivers, with immediate disqualifiers including convictions for any felony, fraud, sexual offenses, or violent crimes, or registration as a sex offender.
  • A review of driving history, with disqualification for drivers convicted of three or more moving violations in the last three years, DUI, underage drinking, refusal to submit to a breathalyzer, hit and run, or eluding law-enforcement, or a revocation of a driver’s license.
  • Zero tolerance for the use of drugs or alcohol by any drivers, and a suspension pending investigation of any driver accused of violating the zero tolerance policy.
  • Only employing drivers who are properly licensed and over 21, and vehicles that carry a maximum of seven passengers and are properly registered and inspected for safety and emissions, where applicable.
  • Rigorous insurance requirements, including requiring drivers to maintain automobile liability insurance, maintaining on behalf of all drivers an additional $1,000,000 of coverage from the moment a driver accepts a trip request until the passenger leaves the vehicle, and liability insurance for drivers who are logged onto the companies’ software but not providing services.
  • Maintaining documentation for each driver of his or her background check, sex offender registry check, driving record, proof of insurance, valid driver’s license, Social Security number, vehicle registration, and proof of vehicle safety inspection. Documentation must be available to DMV on demand to investigate any complaints, and must be available for periodic audits to ensure compliance.
  • Paying any previously assessed civil penalties for non-compliance and dropping any appeals, which both companies have already done.
  • Features to help customers identify their driver and vehicle, including from the outside of the vehicle.
  • Drivers notifying the companies of any change in their license status, vehicle registration, insurance, or any arrest for a crime that would disqualify them from being a driver.
  • Rate transparency and documentation.
  • Companies advising drivers of their need to comply with applicable tax laws.
  • Only accepting rides booked through the companies’ mobile device apps, not street hails.
  • Companies maintaining a Virginia transportation broker’s license.

The full press release, after the jump:  (more…)

County Board Sympathetic to Taxi Drivers in Uber Dispute

By Ethan Rothstein

The County Board discusses the CIP 07/19/14County Board members weighed in on the ongoing Uber and Lyft controversy during Saturday’s monthly meeting, largely expressing support for the taxi drivers and companies.

None of the County Board members expressed an explicit desire to ban Uber, citing its popularity, but Board Chair Jay Fisette, Vice Chair Mary Hynes and Board member Walter Tejada each expressed sympathy for the county’s taxi drivers — who have organized protests of Uber and Lyft — who are losing business to the ridesharing services.

“As a Board, as individuals, there is a recognition that some of these new services have stolen some people’s hearts or gotten their business because of the technology they provide and some of the customer service they provide,” Fisette said. “We are very respectful of the drivers… that do need to make a living in this community and do a fine job of it, and then we need to figure out as a state and as a community what authority we have and how we might effect and take advantage of that authority as that unfolds.”

Uber’s UberX service and Lyft allow smartphone users to book rides with non-professional drivers. The drivers drive their own cars and Uber and Lyft don’t have licenses to operate as taxi or car service companies. The lack of regulatory oversight led the Virginia Department of Motor Vehicles to issue a cease and desist order against the companies, but both Uber and Lyft have continued to operate in the state.

Most recently, eight Northern Virginia taxi companies — including Arlington Blue Top Cabs — have filed a lawsuit requesting an injunction against the two companies, requesting a judge order them to stop operations in the state before the DMV and Attorney General Mark Herring make a ruling on their requests for operating authority.

“I thought the cease and desist order from the state was very appropriate,” Tejada said. “Who knows what other issues are going on that we don’t know about because these [companies] are not regulated. I want to make sure the cab drivers, who are working very hard in this area, get the respect they have earned. These are hard-working individuals, and some of these companies charge them an arm and a leg to operate a cab. I hope that everyone will indeed play by the rules.”

Only John Vihstadt, the lone non-Democrat on the County Board, sang a different tune in responding to the issue, remarking about the popularity of services while pointing out he’s a loyal Arlington Red Top Cab customer.

“I think we need to keep in mind that the marketplace is responding to a need and responding to a demand,” Vihstadt said. “Competition is a good thing and we should not stifle innovation… At the same time, I think we need to consider the current regulatory scheme that we have for our established cab companies to allow them to be more competitive and able to better respond to the needs of the marketplace.”

Hynes pointed out that while Uber and Lyft have grabbed a sizable portion of the market share, they leave out customers who don’t have access to smartphones.

“The state has to explore how you make sure this service is available to all the people who might need it and that nobody is dealt out of the process by their age, disability or income,” she said. “It’s not just about the young people who use Uber and Lyft, but it’s really how it functions as a piece of our transportation system overall.”

Taxi Companies File Suit Against Uber, Lyft

By Ethan Rothstein

A Blue Top taxicab in ClarendonA group of eight Northern Virginia taxi companies, including Arlington Blue Top Cabs, are suing Uber, Lyft and the Virginia Department of Motor Vehicles.

The suit, filed in Fairfax County Circuit Court, requests the judge issue an injunction that would prevent the ride sharing companies from operating in Virginia without a broker’s license. The DMV has issued “cease and desist” orders against the two ride-sharing companies, but they have continued to operate in the state.

Uber and Lyft have applied for temporary operating authority while the DMV reviews their applications for broker’s licenses. According to a DMV official, neither company has been granted operating authority — temporary or otherwise — while the department awaits guidance from Attorney General Mark Herring.

The 41-page lawsuit claims Uber and Lyft operate without regulation and without requiring detailed background checks or comprehensive auto insurance, and by doing so “pose an immediate, real and substantial threat to the business of Alexandria White Top, Fairfax White Top, Arlington Blue Top, Love Limousine, VIP Cab Company, Checker Cab, Prince William Yellow Cab and King Cab.”

“The primary concern of Arlington Blue Top Cabs is the safety of our passengers and driver,” Arlington Blue Top Cabs Vice President John Massoud told ARLnow.com through a spokesperson. “Companies such as Uber and Lyft have proven their lack of concern for these people by not requiring adequate insurance and background checks. That’s why we filed this complaint in Fairfax Circuit Court.”

Taxi drivers have mounted protests against Uber and Lyft in recent months, and before that were protesting cab companies for “unfair working conditions,” and requesting Arlington enact a “driver’s bill of rights.”

During the legal disputes, Uber and Lyft have maintained service to Northern Virgina — Uber is even expanding farther out into the outskirts of Northern Virginia — as local police, including the Arlington County Police Department, have committed to upholding the DMV’s cease-and-desist order by ticketing drivers.

Uber and Lyft have combined to raise hundreds of millions of dollars in venture capital as they expand to more cities nationwide and internationally. Uber launched in the D.C. area last summer.

New ‘Green’ Car Service Launches in Arlington

By Ethan Rothstein

Green Tomato Cars' Prius Vs (photo courtesy Green Tomato Cars)A new car service has launched in the D.C. area that bills itself as the “legal, green alternative to Uber and Lyft.”

Green Tomato Cars Co-founder and Vice President Jonny Goldstone said the car service launched in Arlington in May and has more than 25 cars in its fleet that are licensed to operate in Virginia, and he plans to add five to 10 more every month, as allowed by Virginia law for operating a car service as opposed to a taxi company.

“We’re looking at getting to 70 to 100 vehicles within the calendar year,” Goldstone told ARLnow.com. “With that sort of number, we’re pretty comfortable we’re going to be able to offer a car in 10 minutes wherever people are. At that point, I think we’re really a viable competitor to Uber for the on-demand rides. Right now we’re most convenient as a pre-scheduled ride service.”

Goldstone said Green Tomato has a “more intimate and personal relationship” with its drivers than Uber and Lyft, and all drivers either rent their cars — all black Prius Vs — from the company or can buy their own. Goldstone said all drivers go through a full criminal check, drug test, have their driving record for the last 10 years reviewed and have to go through a multi-layer interview process.

Screenshot of the Green Tomato app

“About one in seven drivers get through the whole process,” he said. “There’s much more partnership between us and our ambassadors, which we call them because they’re representing the company.”

Green Tomato Cars launched in London in 2006 and is also launching in Paris in the near future. The D.C. area is its first market in the U.S.

Green Tomato charges customers for distance, not time, Goldstone said, except for a $5 rush hour surcharge to account for traffic. A trip from the Pentagon to Dulles International Airport costs $54.99, according to the in-app rate, and from Rosslyn to the Columbia Heights neighborhood of D.C. costs $29.99.

In addition to the app, customers can book trips online and over the phone. Goldstone said each car is equipped with free WiFi for the customers.

While Green Tomato boasts its regulatory approval to operate in D.C.’s Virginia suburbs, Uber and Lyft have submitted requests to the Virginia Department of Motor Vehicles requesting “temporary operating authority” and a broker’s license, which will “go through the proper channels” to determine if the two ridesharing services can legally operate in the state, a DMV official told ARLnow.com last week.

Goldstone said that even though Green Tomato is a licensed operator, and he believes “everyone is a little bit in the wrong” in the fight between Uber, Lyft and the DMV, that doesn’t mean Green Tomato is without worry.

“There is a concern that even as a legitimate operator, we are still going to be targeted, especially by D.C. regulators,” he said. “The Virginia regulators are perhaps more aware of what we’re doing, but the D.C. regulations are so unclear that it’s going to be difficult.”

Photo (top) via Green Tomato

Crime Report: Uber Driver Robbed

By ARLnow.com
File photo

An Uber driver was robbed in Crystal City early Thursday morning.

Police say two men assaulted the driver and took his cash and belongings around 12:20 a.m. From an Arlington County crime report:

ROBBERY, 140626002, 500 block of S. 15th Street. At 12:20 am on June 26, two unknown suspects assaulted and robbed a Uber cab driver of cash and his belongings. Suspect one is described as a black male in his twenties, approximately 6’0″ and 160 lbs. He was wearing a black baseball cap, dark jacket over a white t-shirt, jeans, and black and white shoes. Suspect two is described as a black male in his twenties, approximately 6’0″ and 160 lbs. He was wearing a white t-shirt and blue jeans.

Last week’s Arlington County crime report, after the jump. All named suspects are considered innocent until proven guilty.

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Morning Notes

By ARLnow.com

Sunset landing (Flickr pool photo by Wolfkann)

Five Rideshare Drivers Nabbed in Arlington — Arlington police have issued citations to five drivers of rideshare services like Uber and Lyft since June 5, the department says. The drivers were all pulled over for separate traffic infractions and admitted to driving for the services, which are currently operating illicitly in Virginia. [Washington Post]

Teens Arrested for Skate Park Vandalism — Four teenagers have been arrested and charged with causing $35,000 in damage to the Powhatan Springs Skate Park earlier this month. The teens are accused of painting “graffiti containing vulgar language” at the park, which was closed until county crews could clean it up. [NBC Washington]

Arlingtonian Wins, Then Loses at Wimbledon — For the second year in a row, Arlington resident and tennis pro Denis Kudla advanced to the second round of Wimbledon. Kudla, 21, defeated Turkey’s Marsel Ilhan in the first round of the tournament before falling to No. 10 seed Kei Nishikori of Japan in straight sets. [Wimbledon]

Wine Bar Coming to Rosslyn — Bistro 360, a wine bar and gourmet market from Cassatt’s Kiwi Cafe owner Art Hauptman, is coming to the former Cafe Assorti space at 1800 Wilson Blvd in Rosslyn. The wine bar will have as many as 140 seats indoors and outdoors. Bistro 360 hopes to open its doors by the end of the summer. [Washington Business Journal]

Flickr pool photo by Wolfkann

Arlington Officials Walk Uber Tightrope

By ARLnow.com

Uber driver and car (photo courtesy Uber)Arlington officials are trying to walk a tightrope on the topic of Uber, which is pitting two constituencies against each other: tech-savvy, often younger voters vs. hard-working immigrants who have the support of labor activists.

On one hand, the Arlington County Board is sensitive to the plight of cab drivers, who are trying to fend off ride sharing services like Uber while complying with county and state regulations. On the other hand, many Arlington residents seem to like Uber, which is operating outside the law in Virginia.

County Board Chair Jay Fisette addressed the issue Tuesday, at his State of the County address. His audience: members of the Arlington Chamber of Commerce. Chamber members tend to skew older than the 20-something crowd one might envision when discussing a popular smartphone app, yet when asked who had used Uber, some 50-60 percent of the room raised their hands. Fisette himself had a hand raised — “I used Uber for the first time in New York City recently,” he revealed.

Arlignton Chamber of Commerce 2014 State of the County address attendeesArlington caught flack from Uber fans when the police department announced it would ticket Uber drivers, given the cease and desist order issued by the Virginia Dept. of Motor Vehicles earlier this month. Fisette, however, downplayed the actual impact.

“Our police aren’t going to look for the problem, but if they run into it they’re obliged to ticket these folks,” he said.

Fisette said services that provide rides to consumers are regulated for a reason.

“We have the taxi industry, a regulated industry, created for consumer protection,” he said. “When it wasn’t regulated, quality went down and risk for customers went up.”

Fisette suggested that Uber should compete on a level playing field by complying with the law, but acknowledged that the consumers the state is trying to protect generally seems to like the service.

“I think it’s fair to say they’re seen to provide some outstanding customer service and ease of use,” Fisette said. “It’s convenient, and that customer friendliness and innovation has helped them create a market. Anytime you have a demand, you’re doing something right.”

In the end, Fisette said Arlington would participate in a state study into the Uber issue, but didn’t say what kind of perspective the county would bring to the table.

“As a locality, we don’t really have a point of view except that we have to enforce the law,” he said.

Morning Notes

By ARLnow.com

Yorktown High School graduation 2014 (Flickr pool photo by Wolfkann)

Board to Consider Sign for Rosslyn Skyscraper — The Arlington County Board next month will consider lifting a prohibition on rooftop signs on two new Rosslyn office towers. The action would potentially allow the JBG Cos. to begin work on its Central Place office tower, which is expected to be anchored by the Corporate Executive Board. [Washington Business Journal]

Fisette Asks for Alternative Streetcar Funding Plan — Federal funding is currently expected to pay for half of Arlington’s $287 million share of the Columbia Pike streetcar system’s costs. But federal funding is not guaranteed and, at last night’s Capital Improvement Plan work session, County Board Chair Jay Fisette asked Arlington Director of Transportation Dennis Leach to work on an alternate streetcar funding plan that does not use federal dollars or county funds from residential taxpayers. [Mobility Lab]

Green Party Endorses Vihstadt Again — The Arlington Green Party, which endorsed independent County Board candidate John Vihstadt in this spring’s special election, has announced that it will endorse him again in November’s general election. [InsideNova]

UberX Lowers Fares — Two weeks after Virginia started cracking down on ridesharing services, UberX — the service where regular people drive you around in their personal cars — has lowered its fares in the D.C. area by 25 percent. The new fares are significantly lower than comparable cab fares, the company says. [InTheCapital]

Flickr pool photo by Wolfkann

ACPD to Enforce Va. Uber, Lyft Cease and Desist

By ARLnow.com

UberX driver in RosslynThe Virginia Dept. of Motor Vehicles today sent cease and desist orders to Uber and Lyft, ordering the popular ride-sharing services to stop operating in the Commonwealth.

The DMV asserts that the smartphone-based services, which allow drivers to make money by using their own cars like a dispatched taxicab, are illegal because they have not received the proper authorization from the DMV to operate in Virginia.

In letters to company officials, the DMV says it will “enforce existing laws by companies… and by individual drivers that lack authority to provide passenger transportation.”

Tonight the Arlington County Police Department said it plans to assist in that enforcement, effective immediately.

“We will enforce it, but it will not be a primary focus of our operations,” ACPD spokesman Dustin Sternbeck told ARLnow.com. “We are going to take a soft approach, but we will not turn a blind eye.”

Both Uber and Lyft, meanwhile, told news outlets that they’ll keep operating in Virginia.

Sternbeck did not clarify how, exactly, officers plan to single out Uber and Lyft drivers for enforcement. While Uber drivers typically operate discreetly, with nothing to outwardly distinguish their vehicles, Lyft drivers are supposed to drive around with a large, pink moustache attached to their car’s grille.

Jon Liss, Executive Director of Tenants and Workers United, which has been rallying local cab drivers against Uber and Lyft, applauded the DMV’s action and called on the Arlington County Board to do more to protect cab drivers.

“It is time for Arlington to get in sync with the state DMV and enforce one set of rules for all taxi-like services,” he said. “Drivers in Arlington deserve ‘dispute resolution’ protections and fair and enforced regulations.”

Arlington Falls Church Young Republicans slammed the state’s response to Uber and Lyft, placing blame on Virginia’s Democratic governor.

“The DMV’s decision to crack down on Lyft and Uber is reprehensible,” said AFCYR Chairman Matthew Hurtt. “During his campaign, Governor McAuliffe emphasized the importance of efficient government and transportation in making the Commonwealth the best place for business. Yet, less than six months into his term, he stands idly by while his administration cracks down on a thriving industry that not only brings jobs to the region, but also provides safe and efficient transportation at an affordable price.”

“The DMV should withdraw their cease and desist letter along with their preposterous interpretation of this law,” Hurtt concluded.

Arlington Cab Drivers Rally Against UberX

By ARLnow.com
1/14

(Updated at 5:55 p.m.) Nearly a hundred Arlington (Va.) taxi drivers crowded into the County Board offices Thursday afternoon, asking county policymakers to take action against UberX.

UberX, which launched in D.C. last summer, is a smartphone app that connects users with drivers who use their personal vehicles to give on-demand rides. It presents itself as a “better, faster, cheaper” alternative to taxis.

But in Arlington, taxi drivers and companies are becoming more vocal in their criticism of UberX. They say it’s unregulated, dangerous and illegal. That, and it’s hurting their bottom line.

Red Top Cab, the largest taxi company in Arlington, told ARLnow.com that the number of trips it dispatches is down 5-10 percent compared to 2012 — a drop that it attributes in part to UberX and similar services, like Lyft. Drivers told us there are other signs that UberX is siphoning off riders: full taxi stand lines and some drivers defecting to Uber.

“They’re trying to put people like us out of business,” said Charlie King, Vice President of Red Top, which just celebrated its 50th anniversary. “We don’t have $300 million of Google’s money to play with, so it’s a bit difficult to compete. We do everything we can to keep rates for our drivers as low as we can given the cost structures dictated by regulatory requirements.”

(Uber has raised more than $300 million in venture capital, part of which came from Google Ventures.)

Drivers bear the brunt of the impact from increased competition. They pay Red Top and other cab companies a flat fee that covers the vehicle, maintenance, insurance and dispatch service — a fee that they say keeps rising. Meanwhile, with fewer riders to pick up, nearly every driver at the County Board office Thursday raised their hands to say that they’ve been working longer hours and making less money since the launch of UberX. Many said they work 7 days a week.

“UberX is a cancer,” said Daniel Berhane, an Alexandria cab driver who came to support Thursday’s protest, which was organized in part by the group Virginia New Majority. Berhane said he was working 10 hours a day before UberX. Now he’s working 12-14 hours a day and “even that’s not enough.”

“People are preferring UberX because the fare is lower,” said Syed Omar, an Arlington cab driver. “Passengers are telling us they’re taking it.”

“There’s less and less business,” said another driver, who complained about the loitering tickets drivers have been getting from police. “Taxi stands are full. We’re just driving around.”

Drivers and cab companies alike say UberX competes on an uneven playing field and should be subject to the same rules and regulations as the taxi industry. That would include requirements like obtaining taxi permits, taking police background checks, carrying commercial auto insurance, and charging flat, regulated fares. UberX, said Red Top’s King, is “unregulated and frankly an illegally operating entity… that’s doing its best to undercut the market.”

(Uber’s app can also be used to request pricier rides from “black car” livery service drivers, who are subject to more regulation than UberX drivers. Cab companies and drivers said they’re primarily concerned about the low-cost UberX and Lyft services.)

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