Ride-sharing apps like Uber and Lyft are now operating in cities all over the world, but
they don't appear to follow any of the normal rules for taxis or car services.
In fact, they don't even have to register as a car service.
So, what's going on?
Are Uber and Lyft even legal?
Technically, Yes.
They are legal.
Primarily, because they're not really car services, they're social networking services.
All they do is connect people who want rides with people who offer rides.
I'm sure they'd hate this analogy, but think of them as a huge phone book with all of the
possible drivers listed by proximity to you.
Like with the phone book, it's on the people looking for rides to choose which drivers
they want, and it's up to the drivers to operate their business within the law.
That last part is actually tougher than you'd think, and it's where all of Uber's and Lyft's
legal issues are currently stemming from.
Ride-sharing services can't guarantee that their drivers are operating within the law,
because those drivers are independent contractors.
BUT, if they want to stay open they still need drivers that comply with the laws, so
they have been taking steps in that direction.
To be a driver, you need to have a background check and at least a million dollars in insurance
coverage.
And that applies to almost every passenger-carrying car in any city.
But that's where Uber and Lyft stop.
In most cities you need MORE than just those two requirements.
In Pittsburg, for example, you also need a Certificate Of Public Convenience.
Most rideshare drivers don't have that, and as a result - Pittsburgh issued a cease and
desist order on both Uber and Lyft, just before this past fourth of July.
Technically, they stated public safety concerns, but it was really about non-compliance.
Uber and Lyft are also trying to operate in cities with laws that regulate and benefit
taxi companies.
Cabbies in London, for example, sued Uber, because only certified cabbies in that city
are allowed to have metering systems inside their cars.
Uber fired back, claiming that they don't use a metering system, and the technology
they do use, isn't even based inside of the car.
It's a complicated array of GPS and cell phone technology.
And because of that, the London courts ruled on behalf of Uber.
These are the sorts of minor obstacles Uber has to overcome, and it's the reason they
keep popping all over the news.
So, that's the general run down.
Uber and Lyft are legal, but their drivers may not be - and it's up to each individual
city to either adjust, shut ride-sharing down, or enable their drivers to comply.
It's gonna be an ongoing issue, and it's definitely worth keeping an eye on.
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