The Green Shoots of the NYC Taxi Rules on Ridesharing Companies

Kristian Stout —  23 June 2015

imageI am of two minds when it comes to the announcement today that the NYC taxi commission will permit companies like Uber and Lyft to update, when the companies wish, the mobile apps that serve as the front end for the ridesharing platforms.

My first instinct is to breathe a sigh of relief that even the NYC taxi commission eventually rejected the patently ridiculous notion that an international technology platform should have its update schedule in anyway dictated by the parochial interests of a local transportation fiefdom.

My second instinct is to grit my teeth in frustration that, in the face of the overwhelming transformation going on in the world today because of technology platforms offered by the likes of Uber and Lyft, anyone would even think to ask the question “should I ask the NYC taxi commission whether or not I can update the app on my users’ smartphones?”

That said, it’s important to take the world as you find it, not as you wish it to be, and so I want to highlight some items from the decision that deserve approbation.

Meera Josh, the NYC Taxi Commission chairperson and CEO, had this to say of the proposed rule:

We re-stylized the rules so they’re tech agnostic because our point is not to go after one particular technology – things change quicker than we do – it’s to provide baseline consumer protection and driver safety requirements[.]

I love that the commission gets this. The real power in the technology that drives the sharing economy is that it can change quickly in response to consumer demand. Further, regulators can offer value to these markets only when they understand that the nature of work and services are changing, and that their core justification as consumer protection agencies necessarily requires them to adjust when and how they intervene.

Although there is always more work to be done to make room for these entrepreneurial platforms (for instance, the NYC rules appear to require that all on-demand drivers – including the soccer mom down the street driving for Lyft – be licensed through the commission), this is generally forward-thinking. I hope that more municipalities across the country take notice, and that the relevant regulators follow suit in repositioning themselves as partners with these innovative companies.

Kristian Stout

Posts

Kristian Stout is the Associate Director for Innovation Policy at the International Center for Law and Economics (ICLE). As a technology professional and entrepreneur for over ten years, Kristian’s scholarship is influenced by a practical understanding of the challenges facing innovators in the modern economy. Kristian has previously been a lecturer in the computer science department of Rutgers University, is frequently invited to speak on law and technology topics, and has been published in law journals and legal treatises. Kristian is an attorney licensed to practice law in New Jersey and Pennsylvania, is a partner at A&S Technologies, a software services firm, and sits on the board of CodedByKids, a nonprofit organization that provides STEM education to underprivileged children.

One response to The Green Shoots of the NYC Taxi Rules on Ridesharing Companies

  1. 

    Traditionally, the taxi cab industry suffers from the lack of experience long term drivers.

    There is a minimal level needed to enter the industry as a driver. Only if you really love driving do you stay & become a good taxi cab driver.

    But, cities have experimented with radical deregulation at the driver level have not reckoned on the long term effects –less experienced drivers.