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Congestion surcharge will be ‘devastating’ for cab industry, TLC commissioner says

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New York City’s Taxi & Limousine commissioner joined advocates Monday in calling Gov. Andrew M. Cuomo’s congestion surcharge “devastating” for an already reeling yellow cab industry.

The measure will add surcharges to any yellow cab, e-hail or other for-hire vehicle trips that start, pass through or end in a designated “congestion zone” below 96th Street in Manhattan beginning Jan. 1. The state estimates it will generate about $400 million a year for the financially strapped MTA.

But the mechanism of the surcharge has left cabbies and the city crying foul. Yellow cabs will have to add $2.50 to the meter per trip while companies like Uber and Lyft will have to collect $2.75 per trip. But e-hails will have greater options to mask the surcharge by tweaking trip costs and the surcharge in those vehicles will be reduced to 75 cents for any shared trip request — even if the driver doesn’t end up picking up more than one passenger.

“The fact that it will cost $5.80 to step into a taxi cab now is going to be devastating for the taxi industry,” TLC Commissioner Meera Joshi said after a City Council oversight hearing on the surcharges, referencing the existing fees on taxi trips. “The other sectors … have more flexibility. They have to add $2.75 on but they’re not bound to a metered fare, so they can reduce the price of the trip so that the passenger doesn’t feel the effect of the $2.75.”

Pooled taxi trips, requested through third-party app services, will also be eligible for the $2 discount, though those trips only account for a small fraction of yellow cab rides, which are still predominantly hailed on the street.

The concerns come after eight TLC-licensed drivers have committed suicide in 2018 — a disturbing trend advocates attribute to the financial hardships of an industry that has been upended in recent years by the introduction of Uber, Lyft and other e-hail companies. The deaths have spurred more focus on policy for the industry; last summer, New York became the first major American city to temporarily cap the number of for-hire vehicles on its streets.

The New York Taxi Workers Alliance — one of Uber’s biggest critics in the city — called for a surcharge exemption for yellow cabs.

“Albany is crushing a sector and workforce that has contributed to MTA funding all these years, while rewarding a business model that is directly trying to gut MTA ridership and is directly responsible for the congestion choking our streets,” said NYTWA Executive Director Bhairavi Desai.

E-hail and black cars do pay state and city sales tax on top of the fare, as well as a state commuter tax that together come out to 8.875 percent charge. Aliz Anfang, a spokeswoman for Uber, said in a statement that “the best way to increase demand for yellow taxis — as well as other forms of transportation including the subway — is to support comprehensive congestion pricing and have personal vehicles and trucks pay their fair share to drive through midtown and downtown.”

It’s not clear what the congestion surcharge, cooked up by Cuomo’s Fix NYC panel as part of a more comprehensive congestion pricing proposal, would do to reduce traffic volumes on its own. Traffic expert and congestion pricing proponent Charles Komanoff doesn’t expect it will do much.

“It will be very small — somewhere between, at best, modest; at worst, imperceptible,” Komanoff said.

He has called for robust congestion pricing proposal for all cars entering the most congested parts of Manhattan as well as charges on yellow cabs and e-hail vehicles driving in the congestion zone without passengers.

Joshi said she’s also interested in “looking at flexible solutions that reflect more about penalizing empty cars circulating in the congestion zone — so you’re penalized and you’re paying for the exact act that you’re trying to prevent. And I think that’s much more focused and probably fair in the end.”

“It was a very blunt surcharge that was put on there — and I do believe the state is open to looking at it again in conjunction with congestion pricing generally,” Joshi said.

Tyrone Stevens, a spokesman for Cuomo, said in a statement that the governor “will continue to work with legislature to evaluate this surcharge and pass comprehensive congestion pricing once and for all” when the legislature reconvenes in January. The funds from a congestion pricing plan would go toward funding the MTA’s Fast Forward plan to modernize subway, bus and accessibility services.

“The legislature passed and the governor signed a congestion surcharge as the first phase of the Fix NYC plan and the first step in establishing congestion pricing within New York City, which is the most realistic way to help fund [the] modernization plan,” Stevens said.

Source: https://www.amny.com/transit/congestion-pricing-nyc-1.23589472

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Uber, lyft and other taxis

Lyft Is Another Step Closer to Driverless Ridesharing

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Ridesharing company Lyft (NASDAQ: LYFT) inched a little bit closer toward self-driving ridesharing last week when it said in a blog post that it’s adding Chrysler Pacifica hybrids to its autonomous vehicle (AV) testing fleet and opening a new self-driving vehicle test facility.

The new facility, located in East Palo Alto, California, will allow the company to increase the number of AV tests it can run. It will also let the company test how the systems do with different road configurations, including intersections, merging lanes, traffic lights, and similar challenges. The company said in the post that the new facility will let Lyft “further accelerate the speed of innovation.”

Lyft says that it’s driving four times more autonomous miles per quarter than it was just six months ago and has about 400 employees worldwide working on self-driving tech. That figure is likely to expand, considering that Lyft has more than 40 autonomous vehicle job openings listed on its website.

In addition to the new facility, Lyft said that it’s adding Pacifica minivans to its AV fleet, which is the same vehicle that Waymo, Alphabet’s self-driving car company, uses for its public self-driving ridesharing project and AV tests. Lyft said that, “The minivan’s size and functionality provide our team with significant flexibility to experiment with the self-driving rideshare experience.”

Why does all this matter for Lyft’s autonomous-vehicle future? Because to have a successful, public self-driving ridesharing fleet in the coming years, Lyft needs to lay the groundwork right now.

Isn’t Lyft already doing AV testing?

Lyft is, of course, already working on AV testing. The company’s original self-driving test facility has been up and running since early 2018. The company also started a partnership with Waymo earlier this year to test autonomous ridesharing. Additionally, Lyft also works with Aptiv, an AV tech company, and together they’ve created “the largest publicly available commercial self-driving program in the country” and have completed more than 75,000 rides through the partnership.

But the recent announcements by Lyft show that the company is taking its AV focus a bit further. The Pacifica minivans have been used by Waymo’s AV ridesharing program in Phoenix for more than a year now, making them a proven choice for shuttling around ride-hailing passengers. Lyft may not be ready to launch a wide-scale autonomous ridesharing service just yet, but testing out these vehicles likely means that it’s moving past earlier stages of AV testing and is now looking at how its next-generation self-driving tech can handle new vehicles.

Why this matters for Lyft

Lyft and other ride-hailing companies, including Uber, are keeping a close eye on self-driving developments and testing out the technologies themselves because it could eventually become an integral part of their business model. Research from Intel predicts that the AV ridesharing market could be worth $3.7 trillion by 2050.

Additionally, as regulations surrounding ridesharing drivers continue to increase, Lyft is likely looking to AVs to eventually replace some human drivers. Just a few months ago, the state of California introduced a bill that could pave the way for independent contractors, including Lyft’s drivers, to be reclassified as employees. If a version of the bill becomes law and other states follow California’s lead, it could significantly increase operating costs for Lyft. That could be bad news for the company, which is unprofitable right now and hoping to be in the black just two years from now.

While Lyft’s announcements may not seem all that significant right now, investors should know that these baby steps moving the company closer to AV ridesharing could have huge results in the coming years. For now, investors should be pleased that Lyft is beefing up its own AV testing. Each move the company makes now means that it’ll be much more ready for a self-driving ridesharing future.

Source www.nasdaq.com

By Chris Neiger

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Uber, lyft and other taxis

Uber fined $650 million by New Jersey over driver classification

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New Jersey is the latest state to say Uber’s drivers should be classified as employees rather than independent contractors. The state’s Department of Labor and Workforce Development said that because of this misclassification, the ride-hailing company owes it roughly $650 million in unemployment taxes and disability insurance, according to Bloomberg Law.

The Department of Labor reportedly has been trying to get unpaid employment taxes from Uber going back as far as 2015, according to documents obtained by Bloomberg Law. It said the company owed the state $523 million in overdue taxes along with another $119 million in interest and penalties for the last four years. Uber disputes these findings.

“We are challenging this preliminary but incorrect determination,” an Uber spokesman said in an email. “Because drivers are independent contractors in New Jersey and elsewhere.”

Driver classification is an issue that government regulators have been taking a closer look at over the past year. California passed a law in September that could require Uber and other on-demand companies to reclassify their drivers as employees instead of independent contractors. The law is set to go into effect Jan. 1. New York, Oregon and Washington state have considered similar legislation.

Uber, Lyft and several other tech companies have vowed to fight the California law, collectively putting more than $90 million behind a ballot initiative that’ll take the issue to voters next November. Many drivers have said this move is a slap in the face as they struggle to earn a living wage.

Uber’s and Lyft’s business models depend on bringing aboard hundreds of thousands of independent contractors, whose labor is typically cheaper than that of employees. That’s because Uber and Lyft drivers supply and maintain their own cars and also pay for their own health care and benefits, such as sick days or overtime pay.New Jersey is the latest state to say Uber’s drivers should be classified as employees rather than independent contractors. The state’s Department of Labor and Workforce Development said that because of this misclassification, the ride-hailing company owes it roughly $650 million in unemployment taxes and disability insurance, according to Bloomberg Law.

The Department of Labor reportedly has been trying to get unpaid employment taxes from Uber going back as far as 2015, according to documents obtained by Bloomberg Law. It said the company owed the state $523 million in overdue taxes along with another $119 million in interest and penalties for the last four years. Uber disputes these findings.

“We are challenging this preliminary but incorrect determination,” an Uber spokesman said in an email. “Because drivers are independent contractors in New Jersey and elsewhere.”

Driver classification is an issue that government regulators have been taking a closer look at over the past year. California passed a law in September that could require Uber and other on-demand companies to reclassify their drivers as employees instead of independent contractors. The law is set to go into effect Jan. 1. New York, Oregon and Washington state have considered similar legislation.

Uber, Lyft and several other tech companies have vowed to fight the California law, collectively putting more than $90 million behind a ballot initiative that’ll take the issue to voters next November. Many drivers have said this move is a slap in the face as they struggle to earn a living wage.

Uber’s and Lyft’s business models depend on bringing aboard hundreds of thousands of independent contractors, whose labor is typically cheaper than that of employees. That’s because Uber and Lyft drivers supply and maintain their own cars and also pay for their own health care and benefits, such as sick days or overtime pay.

 

“New Jersey is sending a message that the state’s labor laws aren’t dictated by corporations,” Bhairavi Desai, executive director of the New York Taxi Workers Alliance, said in a statement. “It’s a stinging rebuke of the architects of the gig economy, and we hope it permeates across other sectors.”

Even if Uber’s drivers were determined to be employees rather than independent contractors, Uber said the $650 million New Jersey tax fine would be too high — particularly if it’s based on what the company has earned in the state. Uber didn’t disclose the revenue it generated in New Jersey over the past four years, but its combined revenue for all the markets where it operated in 2018 was $11.3 billion.

 

 

 

Source www.cnet.com

By Dara Kerr

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Uber, lyft and other taxis

Adams Clinical removes hurdle to clinical trial participation

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How Adams Clinical increased retention and streamlined operations by switching to Uber.

One of the hardest parts of conducting a clinical trial is identifying willing participants. Once a participant is identified, strict qualifications and an often-lengthy time commitment limits who can participate, and a lack of access to transportation can make it difficult for participants to commit to and complete the study. To help improve recruitment and retention rates, Adams Clinical offered taxi rides to their participants. However, this solution became a burden on operational efficiency since taxis were only accessible to participants who lived close by and required the staff to pay at the end of each ride.

Finding the perfect transportation solution with Uber Health

To expand their transportation offering, Adams Clinical became an early beta partner with Uber in 2016. The team started using Uber’s web dashboard to arrange and pay for rides for participants with just a few clicks. Over the three years of this partnership, the switch to Uber Health simplified operational management, while reducing time spent on recruitment with increased retention rates. The easy-to-use Uber Health dashboard tracked all the rides and processed payments from one centralized interface, allowing the staff to arrange rides without the hassle of paying at the end of each trip. This flexibility, plus the extensive reach of Uber driver-partners in the Boston area, provided Adams Clinical with the transportation solution needed to successfully manage their participants in need of rides—which removed the headache from recruiting and retaining their study participants.

The result: Improved retention rates, simplified financial records, and an overall lift in team morale

By teaming with Uber Health, Adams Clinical enjoys a number of key benefits including:

• Expanded Recruitment—Using Uber Health cut down the length of enrollment by providing a larger pool to recruit from, resulting in a 5 to 10 percent reduction in recruitment time over the last two years. 

• Centralized Billing—All rides are charged to one company credit card, which is then processed at the end of each month to streamline the amount of administrative effort required.

• Reliable Service—Each ride is tracked in the dashboard so the team knows when the participant will be arriving to help keep the rest of the study on schedule.

• Improved Retention—In the first two years of the partnership with Uber, Adams Clinical estimated up to 20 percent fewer people dropped out of a trial when transportation was arranged to and from the clinic.

• Financial Accountability—Details for each ride are available in the dashboard, and can be downloaded to a spreadsheet, offering convenient management with trial-specific reporting per participant.

• Easy to Use—Using Uber Health has been easy for both staff and participants, even among populations without smartphones or passengers new to Uber.

 

by Kendall Brown

Source uber.com

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