CITY
PROVIDES UPDATE ON RIDESHARING OPERATIONS
SINCE INTRODUCTION TO NEW ORLEANS MARKET IN SPRING 2015
NEW ORLEANS – Today, the City
of New Orleans provided an update to the New Orleans City Council
Transportation and Airport Committee on ridesharing operations and their impact
on the taxicab industry since being introduced
to the New Orleans market last year. In April 2015, Mayor Mitch Landrieu signed
an ordinance permitting ridesharing that creates definitions and regulations
for the operations of Transportation Network Companies (TNC) and TNC
vehicles. The ordinance was the result of productive discussions between
the City, City Council and various stakeholders, along with input from the
public. Currently, Uber is the only TNC operating in the New Orleans market.
According to
the City’s Department of Safety and Permits, the introduction of TNC Service
did not take away significant customers from the taxi industry. Instead, it
increased the number of overall customers utilizing for-hire transportation. In
2015, there were 1.2 million TNC rides. During the same period, there were
approximately 2.8 million taxi rides. This is down only 150,000 taxi rides from
2014, which saw approximately 2.9 million rides. This decrease can be
attributed to normal market fluctuations. In 2013, there were approximately 2.6
million taxi rides. Based on the City’s analysis, TNCs provided approximately 1
million new trips that otherwise may not have occurred by meeting an untapped
consumer demand for a different type of ridership experience.
In addition,
TNCs met its pledge of increasing market availability to historically
less-served areas such as Algiers and New Orleans East. While over half (57%)
of all taxi rides started from the French Quarter or Central Business District;
only about 40% of TNC rides originated in the French Quarter and Central
Business District.
Meanwhile, taxi
revenues continued to show increases in 2013, 2014 and 2015. Taxi service
departing the Louis Armstrong New Orleans International Airport has also seen a
slight increase.
Click here for the City’s presentation
given today to the New Orleans City Council Transportation and Airport
Committee
TAXICAB
REFORMS
In April 2012,
the City Council passed sweeping taxicab reforms recommended by the Landrieu
Administration. The reforms have already improved vehicle standards, CPNC
standards, and driver and passenger safety. The changes brought significant
improvements to the New Orleans taxicab industry by requiring newer, cleaner vehicles,
Global Positioning Systems (GPS), and credit card machines in all cars. Also,
in 2014, the City Council passed regulations permitting luxury car services to
use app-based technology, which allowed for Uber Black to operate in New
Orleans.
RIDESHARING
Under City law,
ridesharing operations are permitted by defining a TNC as a person,
organization or corporation that connects passengers with drivers using their
personal vehicles for the purposes of for-hire vehicle transportation through a
TNC digital network. Drivers are not required to be employees of the TNC.
Services commence when a driver logs in to the TNC digital application and
conclude when the driver logs out.
Under the
Ordinance, the Department of Safety and Permits has full discretion in issuing
permits and is responsible for:
- Ensuring
compliance and enforcing violations;
- Collecting
an annual permit fee of $15,000, as well as 50 cents per trip originating in
Orleans Parish to be paid each quarter; and,
- Submitting
lists of TNC drivers to be randomly drug tested.
TNCs found to
be operating without a permit will be fined no less than $500 for the first
offense and will not be allowed to obtain a permit for one calendar year.
Subsequent offenses will result in the maximum fine allowable and permanent
prohibition from obtaining a TNC permit.
To apply for a
TNC permit, applicants must provide:
- Name
of the business;
- Name,
phone number, mailing address, and street address of the applicant's agent for
service of process;
- Proof
of insurance;
- Description
of standard rates;
- Occupational
license;
- Proof
of physical office address in Orleans Parish; and,
- Any
additional information requested by the Department of Safety and Permits
Director
Each TNC must
maintain a website that provides:
- Customer
service telephone number and/or email address;
- The
TNC’s zero tolerance policy for driver drug and alcohol use;
- Reporting
mechanism for drivers suspected of zero tolerance policy violations;
- Rate
calculation formula; and,
- Department
of Safety and Permits complaint contact information.
TNCs must
maintain a registry with the Department of Safety and Permits of all employed
or contracted TNC drivers that must be electronically updated the first of each
month or within 24 hours of request. The registry will include the following
information:
- Full
name;
- Date
of birth;
- Louisiana
driver's license number;
- Louisiana
motor vehicle registration number of vehicle or license plate number; and,
- Active
dates of employment or contracts.
TNC vehicle
requirements are:
- Must
be owned or leased by driver;
- Must
have an insurance policy that covers TNC vehicles (provided by the driver or
the TNC itself);
- Must
be annually inspected by a state-certified mechanic or garage;
- Must
be under seven years old; and,
- Cannot
be licensed as a taxicab, limousine, horse-drawn carriage, pedicab, tour
vehicle, courtesy vehicle, non-emergency medical vehicle or airport shuttle.
Additional TNC
requirements and regulations:
- Must
perform background checks on drivers;
- Cannot
increase rates during emergencies;
- Minimum
charge for a trip set at $3.50;
- Minimum
charge for trip to/from Louis Armstrong International set at $33.00;
- Not
permitted to pick up passengers at Louis Armstrong International without prior
authorization from the New Orleans Aviation Board;
- Cannot
pick up passengers hailed from the street or at designated taxicab stands;
- Drivers
must submit to a drug test within 24 hours of an accident;
- Cannot
impose additional charges to persons with physical disabilities; and,
- Must
comply with laws relative to the accommodation of service animals.
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