Category Archives: Transportation

Measuring the Impact of Complete Streets

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“Complete Street” projects that make streets more hospitable to pedestrians, bicycles and mass transit have a multitude of benefits, concludes Smart Growth America in a new report, “Safer Streets, Stronger Economies.” In a study of 37 projects, the authors found that complete streets tend to result in higher property values, fewer traffic accidents and injuries and more walking, biking and transit usage.

Previous studies of complete streets tended to focus on the health benefits associated with encouraging people to walk and bike more. People who live in walkable neighborhoods get 35 to 45 more minutes of moderate physical exercise each week, reducing their incidents of obesity. Youths who walk or bike to school tend to focus more and perform better in classrooms. The Smart Growth America report focused more on the economics of Complete Streets. Among the findings:

  • Fewer collisions. About 70% of projects studied experienced a reduction in collisions, and more than half a reduction in injuries. That translated into $18.1 million in lower collision costs in a single year for the 37 cases studied. “If a Complete Streets approach was used strategically … the savings over time could run into the hundreds of millions or billions of dollars.”
  • More walking, less driving. Among projects that tracked pedestrian and biking activity, 12 of 13 projects showed an increase in walking and 22 04 23 showed an increase in cycling. Among those that tracked driving, 19 of 33 projects had fewer cars than before, 13 had more, and one did not change.
  • Positive impact on local economy. Although results were mixed, the redesigned streets tended to report an increase in the number of businesses and the number of people employed. Of the ten projects that reported before-and-after data for property values, eight reported an increase in property values while two reported no change. In two-thirds of the studies for which comparable data was available, property values outpaced that of the city as a whole. In one project, Dubuque, Iowa, property values increased 111%.
  • Lower construction costs. The construction cost of upgrading streets to “Complete Streets” costs less per mile than average arterial cost per lane mile.

Not all Complete Streets are created equal, however. As with roads and cars, streets that add to pedestrian, bicycle and transit networks create more value than stand-alone projects. States the study: “The real value of a transportation system is in creasing an interconnected network, whether designed for people in cars, on transit, walking or bicycling. Building facilities without connecting them reduces their utility.”

The study did not calculate the Return on Investment of Complete Streets versus conventional road-building projects. Nevertheless, it concluded: “For transportation professionals the clear implication is that Complete Streets may be one of the best transportation investments they can make. These projects should be allowed to compete and be evaluated against other projects on the bsis of their low costs and the benefits they provide.

– JAB

Cruz, “Liberty” and Teletubbies

AP CRUZ A USA VA By Peter Galuszka

Where’s the “Liberty” in Liberty University?

The Christian school founded by the controversial televangelist Jerry Falwell required students under threat of a $10 “fine” and other punishments to attend a “convocation” Monday where hard-right U.S. Sen. Ted Cruz announced his candidacy for president.

Thus, Liberty produced a throng of people, some 10,000 strong, to cheer on Cruz who wants to throttle Obamacare, gay marriage, abolish the Internal Revenue Service and blunt immigration reform.

Some students stood up to the school for forcing them to become political props. Some wore T-Shirts proclaiming their support of libertarian Rand Paul while others protested the university’s coercion. “I just think it’s unfair. I wouldn’t say it’s dishonest, but it’s approaching dishonesty,” Titus Folks, a Liberty student, told reporters.

University officials, including Jerry Falwell, the son of the late founder, claim they have the right as a private institution to require students to attend “convocations” when they say so. But it doesn’t give them the power to take away the political rights of individual students not to be human displays  in a big and perhaps false show.

There’s another odd issue here. While Liberty obviously supports hard right Tea Party types, the traditional Republican Party in the state is struggling financially.

Russ Moulton, a GOP activist who helped Dave Brat unseat House Majority Leader Eric Cantor in a primary last summer, has emailed party members begging them to come up with $30,000 to help the cash-strapped state party.

GOP party officials downplay the money problem, but it is abundantly clear that the struggles among Virginia Republicans are as stressed out as ever. Brat won in part because he cast himself as a Tea Party favorite painting Cantor as toady for big money interests. The upset drew national attention.

Liberty University has grown from a collection of mobile homes to a successful school, but it always has had the deal with the shadow of its founder. The Rev. Falwell gained notoriety over the years for putting segregationists on his television show and opposing gay rights, going so far as to claim that “Teletubbies,” a cartoon production for young children, covertly backed homosexual role models.

Years ago, the Richmond Times-Dispatch published a story showing that the Rev. Falwell took liberties in promoting the school he founded in 1971. Brochures touting the school pictured a downtown Lynchburg bank building with the bank’s logo airbrushed off. This gave the impression that Liberty was thriving with stately miniature skyscrapers for its campus.

Some observers have noted that Liberty might be an appropriate place for the outspoken Cruz to launch his campaign. The setting tends to blunt the fact that he’s the product of an Ivy League education – something that might not go down too well with Tea Party types – and that he was actually born in Canada, although there is no question about his U.S. citizenship and eligibility to run for question.

Hard-line conservatives have questioned the eligibility of Barack Obama to run for U.S. president although he is likewise qualified.

With Cruz in the ring and Liberty cheering him, it will make for an interesting campaign.

Uh, Oh, Maybe We Haven’t Reached “Peak Car”

moving_average

Click for more legible image.

by James A. Bacon

Proponents of Smart Growth, of whom I am one, have been arguing for several years that Americans embarked upon a fundamental shift in driving habits beginning in the mid-2000s. So marked was the decline in Vehicle Miles Traveled (VMT) that a certain triumphalism set in — the drop in driving signaled a shift back to mass transit and walkable urbanism. To be sure, some of the downturn could be attributed to the slow economy, but profound changes in values — a rejection of auto-centric development — was taking root. Some commentators went so far as to proclaim that America had reached “peak car,” and predicted that VMT per capita would continue to decline.

Well, the Federal Highway Administration has reported the latest numbers for 2014, and that triumphalism doesn’t seem quite as justified as it did a couple of years ago. Cumulative travel (measured by the moving 12-month average of Vehicle Miles Driven) increased 1.7% last year, bringing the total travel to a point just shy of the record in 2007. Even more worrisome, drivers were really on a tear at the end of the year. Traffic volume in December increased by 5% compared to the same month the year before.

I haven’t seen how other Smart Growthers have spun this data, and they may have interpretations that confirm their conviction that a big re-set is occurring in human settlement patterns. But I regard the data as grounds for re-examining some of my long-held beliefs — not to change them necessarily, but to go back and take a fresh look and see if they still hold up.

Clearly, the pick-up of the economy and increase in the number of jobs is a factor in putting Americans back on the road. More jobs means more commuting. The plunge in the price of gasoline toward the end of the year undoubtedly played a role as well — the increase in driving was particularly pronounced in the latter months of the year when motorists were enjoying the benefit of lower gas prices.

It’s also possible that the much-touted shift in development back to the urban core is less pronounced than commonly stated. There is no denying that the momentum of growth and development has shifted to some degree back toward traditional downtowns and urban neighborhoods. Downtowns are reviving. They are gaining population and jobs, in a reversal of a decades-long decline. But growth and development also continues in outlying suburbs.

I continue to believe that there is a strong unmet desire in the marketplace for walkable urbanism. But I’ve come to realize two things. First, there is a limited capacity for urban jurisdictions to accommodate new growth. Older cities have limited land available for infill, and re-development of existing commercial and residential areas is a slow, incremental process that takes place property by property and is limited by NIMBY resistance to greater density.

Second, the Suburban Growth Machine is still intact, even after the devastation of the 2007 real estate crash. There is still a vast reservoir of suburban land zoned for traditional, suburban-style development. It is still far easier to build large-scale projects in the burbs than it is in urban areas. Developers are adapting by building more urban-lite projects — mixed-use with some walkability thrown in. Rarely is this development transit-friendly (although there are exceptions, such as locations along the new Silver Line in Northern Virginia). The problem is that these nodes of mixed-use walkability are scattered across the suburban landscape. They rarely  connect. Accordingly, they do not achieve the critical scale required to truly change peoples’ lifestyles and reduce driving to a significant degree.

Bacon’s bottom line: I still maintain that we’ve bent the curve of the once-relentless increase in Vehicle Miles Traveled. While total VMT is nearing its previous peak, VMT per capita still remains considerably below the peak. My new modified position is that driving will continue to increase but on a slower growth trajectory than in previous decades. We’ll see how that prediction stands up to real-world data.

What about Virginia? The FHWA report provided a breakdown of travel by state for December 2014. Compared to the national increase of 5.0%, VMT in Virginia increased only 3.5%. Does that slower growth reflect Virginia’s laggard economy or something more profound? Stay tuned.

Update: Darin, who identifies himself as the ATL (Atlanta) Urbanist, tweets that the spike in VMT may be tied a marked increase in the size of the working age population. View thegraph here.

Bridj Comes to Washington

Bridj provides an interactive map of the Washington metro and invites visitors to plot the locations of their commutes. The data will help the company optimize its routes.

Bridj provides an interactive map of the Washington metro and invites visitors to plot the locations of their commutes. The data will help the company optimize its routes.

Last September, I posted about a Boston-area company, Bridj, that was reinventing the mass transit business by providing luxury bus rides to suburban commuters. For $6, Bostoners could get a comfortable, Wi-Fi-equipped ride from suburban locations to downtown Boston and Cambridge. Just as Uber was disrupting the taxicab industry, Bridj, I opined, would disrupt the bus transit industry.

Now Bridj is coming to the Washington region, the company has announced:

As the world’s first smart mass transit system, we deliver a fundamentally more efficient way of moving throughout the city. Powered by data and mobile tech, we’re able to optimize pick-ups, drop-offs, and routing based on need. Plus, since all rides are shared and each Bridj seats up to 14 passengers, fares cost only slightly more than the metro. However, on Bridj you’re always guaranteed a seat and an express trip between neighborhoods.

Our PhD-led data science team is developing our initial service area as we speak. Their algorithm takes into account dozens of different data streams on how D.C. moves, as well as feedback from potential users like yourself.

If Uber’s experience is any indication, Bridj will meet plenty of resistance from local transit monopolies who will complain about the company “skimming the cream,” threatening to drive them out of business, depriving poor people of transportation monopolies and all the rest. Hopefully, Virginia will respond to the Bridj challenge the same way it did to the Uber challenge with light-handed regulation tailored to safeguarding the public health and safety rather than protecting vested economic interests.

But Bridj may be savvier than Uber from a P.R. standpoint. I haven’t heard of any anti-Bridj backlash in the Boston area, so the company may be taking a less confrontational approach. Regardless, it would be nice to see the McAuliffe administration take a proactive stance, confer with Bridj executives and make the company’s transition to the Virginia marketplace as smooth and painless as possible. We should embrace the attitude that making Virginia a “Bridj friendly” state will confer a competitive economic advantage.

– JAB

Government Fragmentation and Economic Growth

fragmentation

by James A. Bacon

What are the secrets of successful metropolitan regions? According to conventional economic-development thinking here in Virginia, success hinges upon the ability to maintain a positive business climate, a concept that encompasses everything from tax rates to the tort system, the transportation network to the education level of the workforce. But a new publication by the Organization for Economic Cooperation and Development (OECD), “The Metropolitan Century,” identifies a critical variable rarely discussed in Virginia: the fragmentation of municipal governance.

Metropolitan regions characterized by higher levels of municipal fragmentation tend to experience lower economic growth rates than metros with less fragmentation, contends the OECD report, as seen in the chart above. Metropolitan regions run the gamut in the degree of fragmentation, from the United Kingdom with an average of 0.4 municipalities per 100,000 residents to the Czech Republic with an average of 2.43 per 100,000. All other things being equal, the report says, “For each doubling in the number of municipalities per 100,000 inhabitants within a metropolitan area, labour productivity in the metropolitan area decreases by 5-6%.”

(I would surmise that the number of municipalities in Virginia falls in the “moderately low” category. For example, the 1.7 million inhabitants of the Hampton Roads metropolitan area are governed by 16 jurisdictions, including two in North Carolina, or slightly less than 1.0 per 100,000 population.)

Fragmented government inhibits economic growth through its impact on transportation and land use, suggests the OECD report. The inability to plan regionally can result in “sub-optimal provision of transportation infrastructure” that falls short of its potential to provide the connectivity required by a productive, growing regional economy.

In the context of large urban agglomerations, land use planning and transport planning are often the fields where the need for co-ordination is greatest. … Housing and commercial developments need to be well connected to other parts of the urban agglomeration, and public transport in turn relies on a minimum population density to operate efficiently.

Integrating transport and land-use planning makes it easier to utilize value-capture tools for financing transportation infrastructure. “Public spending for infrastructure increases the price of adjacent land,” states the report. “Often, this price increase provides a publicly funded windfall profit to land owners or developers. Land-value capture tools aim at recapturing these windfalls from developers in order to (partially) fund the infrastructure investment.”

Echoing arguments that EM Risse made on this blog years ago, the OECD report observes that administrative borders in metropolitan areas have not evolved in concert with economic and social patterns.

While good governance structures are no guarantee for good policies, it is very difficult to design and implement good policies without them. … Administrative borders in metropolitan areas rarely correspond to these functional relations. Often, they are based on historical settlement patterns that no longer reflect human activities.

A few decades ago, there was a move in Virginia to consolidate cities and counties in order to achieve administrative efficiencies and economies of scale. There were some notable successes — Virginia Beach merged with Princess Anne County, Suffolk merged with Nansemond County — but the movement petered out.  The OECD report spelled out reasons for resistance to consolidation that apparently apply across the economically developed world:

Common reasons for the persistence of administrative borders are strong local identities and high costs of reforms, but also vested interests of politicians and residents. Even if policy makers try to reorganize local governments according to functional relations within urban agglomerations, it is often difficult to identify unambiguous boundaries between functionally integrated areas.

There doesn’t seem to be any appetite for consolidating local governments in Virginia, but the OECD report does suggest an alternate strategy: Identifying specific functions that can be transferred to regional authorities.

Would it be worth the effort to invest political capital in such endeavors? Take a look at the chart at the top of this post. The big dividing line in economic growth is between medium-low and medium-high fragmentation. Assuming Virginia metropolitan regions fall into the medium-low category — and I do confess that I do not know exactly what the dividing line is — there doesn’t seem to be much of a growth premium from consolidating our way into “low fragmentation” status. Indeed, I would argue that some competition between jurisdictions in a metropolitan area is a good thing — the ability of inhabitants to “vote with their feet” helps keep the politicians honest.

But that’s a shoot-from-the-hip reaction based upon one OECD chart. If Virginia is serious about positioning itself for economic prosperity in the years ahead, our governance structures, rooted in 19th-century settlement patterns, surely need to keep up with economic reality.

Resilience and Competitive Economic Advantage

Flooded Honda factory in Bangkok, 2011 -- what you might call a serious business continuity issue.

Flooded Honda factory in Bangkok, 2011 — what you might call a serious business continuity issue.

by James A. Bacon

If you were a manufacturing company contemplating an expansion to Hampton Roads, you would take into account traditional criteria such as proximity to customers and suppliers, access to a skilled workforce, transportation connections, prevailing wage levels, taxes and so on. But as corporations become increasingly sensitive to the issue of business continuity in the face of disruption or disaster, you also might consider the region’s vulnerability to flooding.

Outside of New Orleans, Hampton Roads is the lowest-lying metropolitan area in the country. It is notoriously prone to flooding now, and the region’s vulnerability will only get worse as the sea level rises. You may or may not believe the McAuliffe administration’s predictions that the sea level will be 1 1/2 feet higher by 2050, but the risk that the forecast might prove accurate would have to factor into your calculations. Logical questions would arise: Would flooding disrupt rail and highway access to your facility? Would it hamper the ability of employees to get to work?

Perhaps the most important question is this: Do state and local governments have a plan to cope with recurrent flooding that will likely only get worse in time? How resilient is the region — not just one particular jurisdiction but, given the connectedness of transportation arteries and commuter flows — the entire region?

The resiliency movement is gaining momentum around the country, driven mainly by worries about climate change. Whatever your views on that polarizing issue, however, there are sound reasons to engage in planning on how to make your community less vulnerable to natural or man-made catastrophes (see “The Non Global Warmist’s Case for Resiliency Planning.”) The fragility of Hampton Roads is obvious for all to see. But every community has vulnerabilities of some kind. The integrity of the electric grid and water supply, for instance, are things everyone should worry about.

Every community should know its risk profile. In Hampton Roads the big concern is flooding. Western towns and cities worry about forest fires. Plains localities lose sleep over tornadoes, while others fear blizzards or terrorist attacks.

The insurance industry pays close attention to some of those risks, which are reflected in insurance rates (unless government policy distorts the price signals by subsidizing rates, as it does with flood insurance.) But, as Cooper Martin, program director for the Sustainable Cities Institute, observed at the Resilient Virginia launch yesterday, insurance covers less than half of total losses. States and localities don’t have insurance for washed out roads and bridges, for instance. There’s no insurance policy that covers the aftermath of a forest fire when rain washes ash into the water supply. “Who pays for uninsured losses?” he asks.

Perhaps the most unappreciated risk of catastrophe is to is a region’s brand, Martin said. Increasingly, a willingness of communities to identify systemic risks, develop plans to deal with them and maintain the financial commitment to carry out the plans will be a big differentiating factor. Corporations that place a premium on business continuity will pay close attention.

Measuring Automobile Dependency

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Rankings among 794 locations.

Fascinating data from Governing magazine comparing auto dependency of various municipalities around the United States: Arlington, Alexandria and the City of Richmond led the pack in Virginia as the least auto-dependent, with Norfolk, Lynchburg and Roanoke close behind.

There are two main variables affecting automobile dependency: income and availability of transportation alternatives.

autos_povertyIncome: Poorer communities, or those with large concentrations of poverty, tend to have more car-less households and fewer cars per family. These households are more likely to car pool or avail themselves of whatever non-car alternatives exist, typically municipal bus systems. As the Governing scatter chart to the left shows, there is a significant correlation between the poverty level and the vehicle-to-household ratio. Note: Governing identified Harrisonburg as an “outlier” having both a high poverty rate and high rate of auto ownership.

Transportation alternatives: Core urban jurisdictions have the best developed transportation alternatives. In Virginia, traditional cities (and Arlington County) tend to be highly walkable and have access to mass transit.

By way of comparison, New York has the lowest rate of auto dependency in the country — o.6 vehicles per household.

– JAB

The Self-Inflicted Infrastructure “Crisis”

Gravel roads look a whole lot better if you're paying for them yourself.

Gravel roads look a whole lot better if you’re paying for them yourself.

by James A. Bacon

We continually hear about an “infrastructure crisis” in the United States, a malady from which Virginia has not been spared. Talk of pot-holed streets, tottering bridges and crumbling highways invariably moves to talk about the need to spend more on infrastructure, which morphs into raising taxes — never by talk about paring back infrastructure that has outlived its economic usefulness.

However, there is a growing body of commentary suggesting that the problem may not be too little infrastructure but too much — too much of the wrong kind of infrastructure in the wrong place. The drum-bangers for more infrastructure spending ignore a fundamental reality: The more infrastructure you build, the more you have to maintain. The more maintain, the more you spend on maintenance. The more you spend on maintenance, the less there is to spend on new stuff.

Writing in New Geography, John Sanphillippo focuses on the disproportionate resources devoted to paving and maintaining subdivision roads in New Jersey. Based on his description, New Jersey should rename itself from “the Garden State” to “the Asphalt State.” The New Jersey Highway Trust Fund is near bankrupt, he writes. Unless the gas tax is raised, all revenue will go exclusively to debt service. And we thought we had problems in Virginia!

Consider the dynamics in the historic Water Witch subdivision near Sandy Hook. The Home Owners Association maintains gravel subdivision roads. Writes Sanphillippo:

When people believe their property tax money entitles them to certain things they often have high expectations. They tend to have a very different attitude when they know they’re going to be writing a check directly for the level of service they ask for. This difference in who pays for the roads leads to different outcomes.

Back in the late 1980’s I was privy to HOA meeting debates where some members demanded that the roads be paved. They were tired of the ruts, mud puddles, and problems of snow removal. The dirt roads were one of the things that had kept property values depressed for decades. So a consulting engineer was brought in and explained exactly what it would cost to pave the roads. It would be many millions of dollars divided by the forty-two homes in the community. That conversation came to a halt instantly. So much for paved roads at Water Witch. The compromise was to maintain the gravel roads to a slightly higher standard with annual adjustments that were far more cost effective.

When government pays for subdivision roads — or bridges, highways or mass transit — people tend not to care about cost. After all, someone else is paying for it. When confronted with the reality of paying themselves, they have a very different attitude.

Here in Virginia, people get frustrated by traffic congestion, which costs them considerable time and inconvenience. They demand that “government” fix the problem — just don’t raise their taxes. Someone else should pay. When it comes down to forking over their own money, people display a remarkably high tolerance for congestion. If they have to pay for it, they’ll usually opt to plug in their iPod and put up with an extra ten minutes of driving.

This reality — that people always want more of something if someone else is paying for it but will settle for less if they have to pay for it themselves — suggests that we should apply an acid test to transportation projects whenever possible: Can the project be paid for with tolls or user fees? If there’s enough demand, the project should be built. If the demand isn’t there, it shouldn’t be.

Questions we should be asking ourselves: Why should the public be asked to pay to maintain non-through subdivision roads? Why should the public be asked to pay for rural roads that carry barely any traffic? What percentage of Virginia’s maintenance spending is consumed by lightly traveled subdivision roads and country roads — and how many more miles of each do we continue to build year after year? In other words, how much of our infrastructure “crisis” is entirely self-inflicted?

U.S. 29… The Saga Continues

VDOT rendering of proposed Rio Road interchange

VDOT rendering of proposed Rio Road interchange

The battle over the Charlottesville Bypass may be over, but the battle over what to do instead is heating up. After pulling the plug on the super-controversial, $240 million bypass early last year, the McAuliffe administration dusted off a plan to upgrade the U.S. 29 commercial corridor north of Charlottesville by investing in a series of spot improvements, parallel roads and grade-separated interchanges. Now the community is up in arms over the proposal to put an $81 million grade-separated interchange at the intersection with Rio Road.

Last week, “hundreds” of citizens attended an open house meeting to voice their opposition to the interchange, which would eliminate a major bottleneck along the clogged commercial corridor, which also serves as a U.S. highway. (See WVIR’s coverage from last week.)

The most steadfast opposition comes from businesses located near the proposed interchange, whose access to major thoroughfares would be diminished by the new configuration of the Rio Road/U.S. 29 intersection. The businesses have been joined by citizens who worry that construction will cause detours and other inconveniences.

Clearly, there are no perfect, painless solutions. The concerns of those who will be negatively impacted by the project are legitimate. The question is whether those concerns should outweigh the general good stemming from the proposed package of improvements. U.S. 29 is, after all, a U.S. highway, whose primary function is to provide connectivity between cities, not to serve as a local main street.

From what I can glean from local media accounts, pieces of the $200 million corridor improvement package are uncontroversial — a $54 million extension of Berkmar Drive parallel to U.S. 29 and a $51 million widening of U.S. 29 between Hollymeade Town center and Polo Grounds Road. Both projects offer tangible benefits and should go forward.

Here’s the question: Could the $81 million allotted to the Rio Road interchange be invested usefully in other improvements? If so, would the economic return on investment — as measured by congestion mitigated and traffic accidents reduced — come close to the benefits of the Rio Road interchange? If so, perhaps the Virginia Department of Transportation should consider reallocating the funds to other projects. However, if the Rio Road project offers a demonstrably superior return on investment, then VDOT officials should not be dissuaded by the public opposition.

I don’t know the numbers, so I can’t make a judgment. But I do have faith in Philip Shucet, the former VDOT commissioner drafted by the McAuliffe administration to devise a reasonable solution to an intractable problem. If opponents want to make the case that the interchange shouldn’t be built, they should demonstrate how $81 million could be invested to greater effect elsewhere.

Update: Shucet responded to my suggestion that the Rio Road interchange could be hived off from the other improvements: “To make the Berkmar – Hillsdale parallel road network work, you have to grade-separate Rio.  It would be irresponsible to construct Berkmar and Hillsdale and somehow believe that it’s ok to wait and see how Rio fairs in the future. ”

The latest traffic numbers say 107,500 cars, a mix of local traffic and vehicles traveling through the region, will be traveling through the intersection by 2040. The grade-separated interchange (GSI) will allow the through traffic to pass through without conflicting with local traffic.

As for local business’ loss of roadway access, Shucet says, Albemarle Square will lose only one of four points of access, and Fashion Square only one of six. Furthermore, the construction plan limits disruption to 103 days.

– JAB

Smooth Ride Ahead for Uber, Lyft

Is that a smile I see under that Lyft mustache?

Is that a smile I see under that Lyft mustache?

It looks like Uber and Lyft will be a permanent part of the Virginia transportation landscape. Legislation essentially legalizing the two ride-for-hire companies has passed both houses of the General Assembly, and Governor Terry McAuliffe has indicated his willingness to sign the bill.

The legislation proposes entirely reasonable regulations that will allow the transportation-network companies (TNCs) to preserve their business models intact, while providing basic protections for riders. Companies must ensure that all drivers are at least 21 years old and properly licensed, and have been screened for criminal backgrounds and sex offenses. Drivers convicted of driving under the influence or other moving violations would be disqualified. Additionally, drivers are required to maintain an $1 million in liability insurance.

Far from putting a damper on the emerging industry, the regulations could legitimize Uber and Lyft in the minds of consumers. At the same time, the new rules are not so onerous that they would discourage competitors from entering the market. This is a victory for everyone.

“The legislation … provides the perfect balance of public safety measures while fostering innovation,” said Del. Tim Hugo, R-Centreville, a co-patron. “Improving transportation for Virginians takes more than just building infrastructure; it requires us to embrace new technology to better meet citizens’ transportation needs.”

Hugo has it exactly right.

There is more to Uber’s technology than apps that connect riders with drivers. Those apps can, and have been, readily replicated. The real secret sauce is Uber’s proprietary algorithms that tell the company how many cars to have on the road at a given point of time and where they should be positioned.

The next step. It is in society’s best interest for these ride-for-hire apps and algorithms to migrate to lower price-points. The end goal is for Uber, Lyft or other companies inspired by them to provide rides in vans or buses for just a couple of dollars. That will put them in competition with municipal bus companies, which carry a lot more political clout than the taxicab industry. That will be the true test.

– JAB