TNC s and Everything Else: The New Wave in (Public) Transportation American Public Transportation Association Legal Affairs Seminar New Orleans, Louisiana February 27, 2015 Michael N. Conneran, Partner 415-995-5042 mconneran@hansonbridgett.com
TNC = Transportation Network Company Definition used by California PUC in regulating ridesharing services Lyft, Uber, etc Online platform to connect riders to personal vehicles
Everything Else Broad range of transportation solutions Some old, many new, many tech-related Many debuting in SF Bay Area
Everything Else A complement? A replacement? A competitor? An improvement? A threat? A blessing? A curse?
What Else is Out There? Shuttles Car pooling Company buses Premium buses
Shuttles Last mile service, often sponsored by business/facility owner to tie facility to transit station/stop Traditional hospital, university, school Employer-paid or agency-subsidized (Clean Air funds) Newer model - Group/shared shuttle operations Developer/TMA funded TMA=Transportation Management Association Assessment-funded Emery-Go- Round Municipal Mountain View, CA Electric Buses
Car Pooling Traditional Government Site to Match Riders Casual Car Pools Bay Bridge Tech-supported Uberpool Lyft Line Sidecar Shared Rides
Car Pooling Example: Lyft Line (SF) competes with public transit via its Match MUNI fare for shared carpools: That isn t to say we don t love our friends at MUNI! MUNI and Lyft Line go hand in hand. -Lyft Line Web Site Split fares violate law SF DA George Gascon The Economist: Carpooling services could disrupt public transport systems in much the same way that Uber and Lyft are disrupting the taxi industry
Company Buses Google Buses SF to Silicon Valley Supports Silicon Valley employees who want to live in SF Takes burden off public transit/roadway system Use of transit bus stops for pick-up/drop-off raises concerns for MUNI Raises issues regarding gentrification, sparking protests in SF and challenge to program to share MUNI stops
Premium Buses: Luxury vehicles operate on routes similar to public transit Bridj (Boston) www.bridj.com Leap Transit (San Francisco) (SF) The commuter bus for the rest of us Blackline (Chicago) Chariot (SF) Your commute solved
Premium Buses Real time data gathering to adjust routes/times on a virtual basis Compare to traditional transit: FTA-mandated notice/hearing process for route/fare changes vs. dynamic pricing and routes Title VI overlay vs. cherry picking popular routes 80% federal participation in public transit vehicle purchases vs. copious venture capital funding
Issues Regulatory Vehicle Licensing (Commercial vs. Private Tags) Insurance Driver Training/Background/Licensing Employee/Contractor Questions Worker s Compensation Hours/Wages Use of Streets/Congestion Airport Entry Fees Data Gathering/Sharing Legality of Shared Rides/Different Destinations
Issues Policy Use of Transit Stops/Terminal Facilities (w/o payment?) Accessibility Paratransit obligations? Cherry-picking Taking only more profitable routes? If public transit routes lose money, is that a bad thing? Impact on public s willingness to fund transit The Economist: [b]y taking customers away from subways and buses, it threatens to drain public transit systems of much needed funding, which could drive up costs for those who rely on public services.
Issues Policy Private sector attitude towards government: Get outta our way!
Who regulates? State PUC (intercity routes only?) Cities/Counties (general governmental powers, but maybe not transit operators) Transit Agencies (limited legislative grant of authority, need to rely on cities/counties for enforcement)
A blessing or a curse?