[msb-alumni] Detroit Reaches Agreement With Lift Ride Service
- From: Steve <pipeguy920@xxxxxxxxx>
- To: <msb-alumni@xxxxxxxxxxxxx>
- Date: Sun, 4 May 2014 13:15:32 -0400
BlankI believe this is useable from iPhones, it is also available on
Androids. For those of you lliving or visiting Motown.
City of Detroit reaches operating agreement with Lyft ride service
By JC Reindl Detroit Free Press Writer
One of the two smartphone-hailed ride services in Detroit has been given a
temporary legal blessing by the city. Lyft and the city of Detroit inked a
two-year agreement Friday that will allow the San Francisco-based
transportation company to continue service here in exchange for adhering to
new safety and insurance requirements. Prior to the Friday's deal, Lyft,
like its competitor in metro Detroit and Ann Arbor, Uber, was operating in a
legal gray area in regards to Detroit's "vehicles for hire" regulations.
Both companies use smartphone applications to match fare-seeking drivers
with riders. "It's a win-win situation," Detroit Corporation Counsel Melvin
"Butch" Hollowell, the city's top lawyer, said Saturday. "It recognizes our
needs to ensure that the public is protected, and it embraces the new
business model that we think is good for transportation in the city. Lyft
and Uber recruit regular folks to be drivers using their personal vehicles.
Both assert that existing state and city regulations for the cab and
chauffeur business should not apply to them, as they don't own vehicle
fleets and instead function as high-tech coordinators and middlemen. Under
the new agreement, Lyft will need to conduct police background checks on its
drivers, provide proof that all its drivers have commercial-grade auto
insurance, similar to that which traditional cab drivers carry. It also
establishes a "strenuous" vehicle inspection program. A Lyft spokeswoman
Paige Thelen hailed the agreement and applauded the city for having
"recognized the value of peer-to-peer transportation and embraced innovation
in a way that will forge a path for other cities and states to follow.
Hollowell said he considers the agreement to be an interim fix until Detroit
City Council can take action to possibly update the city's official
regulations. He acknowledged the car ride service would still need to meet
any state requirements. "It's a new form of transportation," Hollowell said,
"and frankly one of the reasons it's become so popular is people are not
totally satisfied with taxicab service. Although Lyft drivers will now have
to pay significantly more for insurance coverage, they will not have to pay
to register themselves as drivers for hire, a cost of up to $2,000 for a
taxi bond plate. Hollowell said he believes there is "room for
interpretation" in current regulations that might classify Lyft drivers as
such. The city has yet to reach any similar agreement with Uber, the first
of the two companies to arrive in Detroit. In February, Hollowell's office
sent Uber a "cease and desist" notice. "Until they get the green light from
us, that cease and desist is in full force and effect," Hollowell said.
"That means that they're subject to what the penalties in the ordinance are,
which are very substantial fines and potential criminal penalties An Uber
representative could not immediately be reached for comment Saturday.
Steve
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