Just got an email from Mark Meranta (who I do not know) from the Institute of Justice (which I do know and which does great work) on a new case they are filing in Nashville regarding anti-competitive regulation of the limousine industry (video here. ) The law apparently mandates a minimum price for limo service to the airport – from about $25 now to a minimum of $45 — and imposes other regulations. The law was passed to benefit the Tennessee Livery Association, a trade association which wants to limit competition. The IJ is challenging the law in Federal Court.
There is a long history of municipalities messing around with urban transport (and here.) The law being challenged in this case seems particularly egregious. Maybe next they could take on taxicab regulation in New York.
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This subject is getting noticed all across the internet, and the only part of the ordinance that is being talked about is the minimum. The problem that most companies are having is with the background checks that the owners and chauffeurs have to undergo in order to get permits for the company, or a chauffeur permit. The ordinance also sets the insurance minimums to $1,000,000.00, and requires each company to issue a certificate of insurance to the Transportation Licensing Commission, and report on such insurance each quarter.
When I got into this business, just about 5 years ago, was a friend of a friend asked if I wanted to drive a limousine and make some extra money. I asked him what I needed to do? He told me that I needed to get an “F” endorsement on my drivers’ license. All that took was to retake the written part of the drivers’ test, and pay $4.50. So I took the test, passed and now I’m a licensed chauffeur. I then went to the owners’ house, where I picked up the key to the 8 passenger Lincoln Town Car limousine, and the hand written trip ticket, that was left for me in his mailbox. He never met me, nor did he even know what I was wearing, or if I had ever driven anything like that.
I proceeded to Nashville, where I picked up 12 people to take to dinner, and eventually to the biggest show in Nashville, the CMA Awards Show. At the end of the night, the client put her credit card number on the trip sheet along with a tip. Because the owner of the company couldn’t qualify to take a credit card, he had another limousine company run the card.
With that said, would you, Mr. Rubin, feel comfortable putting your mother, wife, sister, daughter or son or even a grandchild in a vehicle, that without most of the requirements set in the ordinance, you could only assume they would be safe?