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
