Transportation Network Companies:SFO Permitting, Enforcement & ChallengesAGTA/AAAE Phoenix Conference

September, 2014

SFO Statistics (FY 13/14): 46.2M air passengers 2,500 ground transportation permittees, operating 11,700 vehicles on 1.5

miles of roadway Average 120,000 passengers per day

Ground Transportation Management Existing systems:

AVI – Transponders on commercial vehicles BART Trains and AirTrain Taxi Smart Cards

New comprehensive GTMS/TMS under development

SFO - The Big Picture

What are TNC’s?A TNC is defined as an organization whether a corporation, partnership, sole proprietor, or other form, operating in California that provides prearranged transportation services for compensation using an online-enabled application (app) or platform to connects passengers with drivers using their personal vehicles. TNCs are not “ridesharing” services. They are for-profit businesses.

SFO Ground Access Modes (3,500 Responses)

Ground Access Survey Results

SFO TNC Permit Timeline

March 8, 2013 SFO Issues Cease & Desist Letters to Lyft, Sidecar, Tic-n-Go (Wingz)& InstantCab

April 2, 2013 SFO issues a Cease & Desist letter to UberX

Nov. 15, 2013Meeting with TNCs (InstantCab, Lyft, Sidecar, Tickengo, Uber) to discuss preliminary permit requirements

Dec. 2013–Mar. 2014 Follow-up meetings with individual TNCs

Apr. 7, 2014Permit application (and reminder of unauthorized airport operations) sent to TNCs

May 15, 2014 Warning letters sent to TNCs

May 16, 2014 Permit application received from Wingz

Putting Safety & Security First Passengers / Drivers / Pedestrians

Easing and Controlling Congestion Limited curb space is a problem Transit First policy

Keeping Operators Accountable Insurance requirements

Fair Play Level playing field for operators

Consistent Enforcement Compliance with Airport Rules & Regulations

Our Performance Goals

Identifying and Understanding the TNC Business Model Meetings with TNCs to understand technology and operations Potential for software-based solutions (e.g., vehicle tracking) Different Companies have different operations – creating a general permit Recognize Consumer Choices / Embrace Innovation

Consider Overall Impacts Equity with other permit requirements Need for data Limited curb space and staging areas

TNC Permit Development – Thinking Outside the Box

Pilot Program Data collection, evaluation of impacts Currently, drop-off only

Insurance $1M commercial liability insurance while on Airport property for TNC trip Airport as additional insured

Identifying TNC Vehicles Trade dress Electronic waybill Airport placard

SFO TNC Permit Highlights

Vehicle Tracking Notification upon entry/exit from Airport property and upon ride completion Required data: License plate number, date/time, GPS location, driver

validation

Fees and Charges $1K deposit, subject to adjustment Trip fee equal to limo rate Trips self-reported and payment remitted monthly

Auditing Operational records/data subject to audit by City

SFO TNC Permit Highlights (cont’d.)

Regulations in flux CA Public Utilities Commission CA Legislature

Illegal operations and regulatory violations Enforcement resources Lack of data Building trust and communication

Challenges

When a driver has accepted a request or picked up a passenger, AB 2293 would require $1 million worth of insurance.

When the driver is cruising with app on looking for a fare, AB 2293 requires $200,000 worth of insurance.

If the Governor signs the bill into law, the requirement would be effective July 1, 2015, and the CPUC and Dept. of Insurance would need to assess whether the coverage requirements are appropriate and report back to the legislature by Dec 31, 2017.

Assembly Bill 2293 - Susan Bonilla

DMV Pull Notice Program DOJ – Background Check A driver shall be denied employment or have his or her contract

voided if he or she is required by any law to register as a sex offender or has been convicted of any felony, within a seven-year period from the date of his or her application, involving any type of sexual offense; the manufacture, possession for sale, transportation, or distribution of narcotics, controlled substances, or addictive or dangerous drugs; force, violence, threat, or intimidation against persons; kidnapping; forgery, fraud, larceny, extortion, burglary, robbery, or theft; credit card fraud; possession of a firearm or dangerous weapon; resisting or obstructing a peace officer, public officer, or emergency medical technician; or use of another vehicle for hire in the commission of a felony. Equivalent out-of-state violations shall be considered.

Assembly Bill 612 - Adrin Nazarian

TNC Enforcement :Violations of CPUC Rules

Violation Percent of contacts

Unauthorized operations at airport 100%

Not displaying consistent trade dress 80%

▪ Improperly displayed (8%)

▪ None (72%)

TNC app not displaying required information 50%

▪ No driver name/picture (42%)

▪ No vehicle picture/license plate (46%)

Use of vehicle not owned by driver 8%

No proof of insurance 3%

No valid California driver license 1% (2 drivers)

QUESTIONS?