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Windels Marx - REPORT - Rogue Smartphone Apps for Taxis, Limos - June 29, 2012

Windels Marx - REPORT - Rogue Smartphone Apps for Taxis, Limos - June 29, 2012

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Published by: dana_rubinstein on Jul 24, 2012
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07/26/2014

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WINDELS
MARX
WindelsMarxLane
&
Mittendorf,
LLP
windelsmarx.com
"ROGUE"SMARTPHONEApPLICATIONSFORTAXICABSANDLIMOUSINES:INNOVATIONORUNFAIRCOMPETITION?
ANATIONALREGULATORYREVIEWOFSAFETY,ACCOUNTABILITYANDCONSUMERPROTECTIONLEGALISSUESJUNE
29,2012
MatthewW.Daus,Esq.
Partner
&
Chairman,TransportationPracticeGroupWindelsMarxLane
&
Mittendorf,
LLP
156West56
th
StreetNewYork,NY10019
©
2012WindelsMarxLane
&
Mittendorf,LLP,
 
WINDELS
MARX
WindelsMarxLane
&
Mittendorf,
UP
TABLEOFCONTENTS
I.ExecutiveSummary1
II.
RegulatoryIssues3
A.
PrearrangementorElectronicStreetHail?"
3
B.SafetyandAccountabilityConcerns.4C.Useof"Taxi"or"Taxicab"intheName.4D.ServiceRefusals5E.Fair"fares"andOvercharging5F.TaximeterorNon-Taximeter5
III.
NationalRegulatoryReview6A.JurisdictionalOverview6B.Pre-arrangement20C.Taximeters24IV.Conclusion32
{I0763397:l3}"ROGUE"SMARTPHONEApPLICATIONSFORTAXICABSANDLIMOUSINES:INNOVATIONORUNFAIRCOMPETITION?
 
WINDELS
MARX
WindeIsMarxLane
&
Mittendorf,
UP
I.
ExecutiveSummary
Astechnologycontinuestoinnovate,moreandmoreresourcesareavailableviasmartphoneapplications-andhailingataxicaborarrangingfortransportationviaafor-hirevehicleisnoexception.Hailingataxicaborarrangingfortransportationnolongerrequiresstandingonastreetcornerormakingatelephonecalltoaliverybase;dispatchingbothtaxicabsandotherfor-hirevehiclesisnowbeingdoneingrowingnumbersthroughsmartphonesandsmartphoneapplications.Technologystart-upandtransportationcompanieshavestartedtofloodthemarketwithapplicationswhichallowfor,amongotherthings,the"hailing"or"arranging"(asignificantlegaldistinctiontobediscussed)oftransportationandmobilepayment.Manyregulatoryagenciesarestrugglingtounderstandtheoperationofthesetransportationapplicationswhilefindingaregulatoryplaceforthembeforetheyare"rolled-out"intosuchagencies'jurisdictions.
In
largepart,mostofthemajorcitiesacrosstheUnitedStatesarealreadyfacedwiththeregulatoryimplicationsoftransportationsmartphoneapplications,suchasthoseofTaxiMagic,Uber,Cabulous,HailoandGetTaxi,tonamejustafew.
1
TheseapplicationsaredistinguishablefromothermobileapplicationsdirectlyoperatedbylicensedtransportationcompaniessuchasGroundl.ink.'whichutilizesmobileapplicationstofacilitateitsbusiness.Issuesaredevelopingwithmanyofthenewsmartphoneapplications,whicharenotoperatedbytransportationcompanies,butratherbythird-partyentitiesthatfacilitatethetransportationandcommunicationbetweentransportationcompaniesandpassengers,butdonotprovidetransportationservicesthemselves.
In
mostinstances,thesecompaniesarenotlicensedbythetransportationregulatoryauthorityinthejurisdictionalthough,inafewinstances,theyareexpresslyregulated.
In
anattempttounderstandtheissuescreatedinvariousregulatoryschemes,belowisanoverviewoftheissuesrelatedtotheinfluxofthesesmartphoneapplicationsandtheconcernsraisedforregulators.Ofconcerniswhetherthesesmartphoneapplicationsoperateaselectronicstreethailsorasprearrangedservices;whethertheoperationscreatesafetyconcernsforpassengers;whethervehiclesdispatchedbyapplicationsaremeetingtheappropriaterequirements;whetherthefarestructuresprotecttheconsumeranddistinguishvehicleservicesintheirrespectivemarkets;andwhetherthechargesarebasedonmeasuresthatmirrorthefarescalculatedviaataximeterwithoutmeetingtherigidtechnicalrequirementsforataximeter.Thisreportthensetsforththeregulatoryprohibitionsand,inaseparatesection,theregulatoryframeworkofthefollowingjurisdictions:Seattle,SanFrancisco,theDistrictofColumbia("D.C."),Chicago,NewYorkandSanDiego-alljurisdictionsinwhichoneormoreapplicationsareinuse.
1
MoreinformationaboutTaxiMagicisavailableonitswebsiteavailableatht!Q~)/taximagic.com/enUS;MoreinformationaboutUberisavailableonitswebsiteathttps://www.uber.com/#;MoreinformationaboutCabulousisavailableonitswebsiteavailableathttp://cabulous.com/;MoreinformationaboutHailoisavailableonitswebsiteavailableathttps://hailocab.com/;MoreinformationaboutGetTaxiisavailableonitswebsiteavailableathttp://gettaxi.com/.
2
MoreinformationaboutGroundLinkisavailableonitswebsiteavailableathttp://www.groundlink.com/adwords/g104/carservice.html?c3=ground%2Q1.illk,10839528409,e&gclid=COG6gdO177ACFUF04AodZDyxwA
{10763397:13}"ROGUE"SMARTPHONEApPLICATIONSFORTAXICABSANDLIMOUSINES:INNOVATIONORUNFAIRCOMPETITION?
1

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