Fort Worth updating vehicle-for-hire rules

In December, Fort Worth took its first step toward rewriting its vehicle-for-hire ordinance when it repealed the section that set age limits on the cars being used to carry customers.

Further changes are coming soon as part of the city’s efforts to deregulate the taxicab and limos industries, but to also bring into the fold the growing use of app-based transportation network companies such as Uber and Lyft. Other cities in Texas and nationwide have gotten more aggressive in regulating such businesses, but those companies fall through the cracks of current Fort Worth regulations.

The new ordinance could be in place by April 1. Among the changes, all fares would become market-driven, hailable vehicles would not be restricted to taxis, but all cars used for-hire would need a city decal.

Doug Wiersig, Fort Worth’s transportation and public works director, said the new ordinance is being kept simple and gets the city out of the fare business, with the exception of taxis hailed at Dallas/Fort Worth Airport. Rather, the measure is focused on safety and opening a competitive marketplace with little government involvement.

“All you have to do is have safe drivers, safe vehicles and a minimal amount of insurance,” Wiersig said. “I’m not going to regulate who you can work for and who not. You can be your own entrepreneur. Our intent is to create for the consumer a level of confidence the driver is safe, the vehicles have seat belts and that they’ve passed all inspections.”

“What we’re doing is looking out there and seeing the marketplace become much more robust,” Wiersig said. “There are a lot more ways to getting a vehicle for hire. The cab companies have their app just like Uber and Lyft.”

Still no consensus

City staff and industry representatives have met for about a year to try and reach a consensus. The city is ready to move forward, saying what’s proposed creates a level playing field. The City Council is slated to vote March 22, several months later than planned.

The ride-share companies, though, still aren’t sold and say some of the proposed ordinance changes create barriers for them to operate. Primarily, they see proposed driver background checks and vehicle fees as onerous and put up barriers to the companies hiring drivers. The fees and time it takes to obtain city approvals may deter individuals from becoming drivers, they contend.

For example, Uber says at least half of its drivers, who use personal cars, work less than 10 hours a week, and a driver is usually a person who wants to make some money in addition to a full-time job. Taxi drivers typically work full time.

Leandre Johns, an Uber general manager, said it’s tricky trying to regulate taxis and transportation network companies under the same ordinance because the business models are so different. The more narrow the ordinance, the more complexities are created, he said.

It’s best to continue regulating taxis as the city historically has, and have a section in the ordinance carved out for the transportation network companies, Johns said.

“It’s not good to be lumped together,” he said.

Chelsea Wilson, Lyft’s public policy communications manager, too, said the proposed ordinance forces ride-sharing into one-size-fits-all taxi regulations without any benefit to public safety.

“Dozens of cities and 29 states across the country have passed common-sense rules that encourage innovation and preserve access to Lyft's safe, affordable rides,” Wilson said. “We urge the city of Fort Worth to do the same.”

Peter Walsh, president of Bedford-based AirCar Executive Transportation, though, said ride-share firms should go through the same scrutiny as his.

“We’ve gone through years and years,” of paying fees, Walsh said. “I don’t have a problem with businesses coming in,” but the city “is making it easier for them to” do so.

Motorized, non-motorized

Being proposed is reducing the number of vehicle categories from five to two: motorized vehicles and non-motorized vehicles, with each carrying some regulations. Non-motorized would include horse-drawn carriages, pedicabs and group cycle vehicles. The age of the car is no longer a concern, as long as it passes inspection, Wiersig said.

Companies falling under the motorized vehicle category would pay $750 annually to operate in the city and companies operating non-motorized vehicles would pay $400 annually. In both cases, drivers would pay $50 for a two-year driving permit, and a $75 annual vehicle fee. Insurance would follow state law.

“We don’t want people to pay money before they make money,” said Uber spokeswoman Debbee Hancock.

Drivers in both categories would require a valid driver’s license, and drug and alcohol screening. A third-party criminal history check would be expanded to a multistate check, not just Texas, and require fingerprinting. Uber said it does an extensive multistate criminal background and driving history checks on its drivers.

This story was originally published February 8, 2016 at 5:17 PM with the headline "Fort Worth updating vehicle-for-hire rules."