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Mayor and Councilmembers:

There was considerable discussion of requirements for TNC drivers at the Council B Session this week. The outcome of the discussion has resulted in a proposed ordinance with numerous flaws, that if enacted would force TNCs to abandon service in San Antonio. The proposed ordinance creates extensive, unnecessary requirements for part-time drivers, creates barriers to entry for drivers and significantly deviates from the standards set by every other Texas municipality that has enacted TNC regulations.

Part-Time Uber Partner-Drivers Are Fundamentally Different From Existing Taxi Operations

To be clear, the majority of Uber partners drive a few hours a week and use their own vehicles (which are inspected by the state of Texas) to make extra income and provide for their families. They are veterans, spouses of active duty military, retirees, teachers, and single parents. Uber creates a marketplace where these people can use their own car to provide a ride to their neighbors when, where, and how often they want, a strong contrast to taxi, where multiple full-time drivers drive one car 24 hours / 7 days a week with high mileage and significant wear and tear with the majority of the profit going to the taxicab company. Simply put, there is virtually no comparison between taxis and

TNCs that use “smart apps” to connect riders looking for transportation to drivers that

provide transportation.

Transportation Network Companies Have Become Part Of Everyday Life Because People Recognize The Real World Problems The TNC Business Model Solve

TNCs are a new and unique business model that uses

“smart apps” and a driver/rider

rating system to connect riders looking for transportation to drivers that provide transportation through an on demand, safe and cashless transaction. Today these apps have become part of everyday life and are being used by people in over 250 cities worldwide. In the beginning, they were used primarily by millennials like the ones we are trying to attract to San Antonio. But more and more, they are being used by people who need affordable and reliable transportation and previously were not served by taxis. The availability of affordable on-demand transportation has transformed everyday life for those who are struggling to make ends meet, the visually im

paired, those who don’t

own cars and individuals on fixed incomes. The platform also offers many of these same people economic opportunities to drive on the Uber platform: The retiree that is worried about make ends meet on a fixed income and needs a flexible job a few days a

week, the single mom who needs to juggle taking care of her kids with trying to put food on her table. Uber is that economic freedom.

Even those not on the platform benefit from Uber’s presence in a city. In addition to the

economic

opportunity, Uber’s entry into a community has been proven to significantly

reduce DUI rates. One study revealed DUIs reduced by more than 10 percent in Seattle. Considering Bexar County witnessed 2,303 alcohol-related crashes in 2013, the city should welcome any partner willing and able to lower this rate. Finally, areas underserved by traditional taxis and public transportation become better connected to the city and expand access to individuals living in these underserved areas. Moreover, TNCs have processes in place to ensure both our drivers and riders are safe. For example, all drivers are subject to a three-step background check screening, which includes county, federal, multi-state and sex-offender database checks. These checks go back seven years, the maximum allowable by the Fair Credit Reporting Act.

The Proposed City Ordinance Contains Numerous Anti-Competitive Driver Requirements That Deviate From The Task Force's Recommendations And Municipal Ordinances Passed In Other Major Texas Cities

The City created a task force charged with devising workable solutions for the regulation of TNC drivers and the new and innovative TNC industry. The task force worked for over three months in good faith to reach consensus on many issues. Its recommendations however were substantially ignored in the proposed ordinance and other onerous requirements were added, including additional insurance and driver requirements, which were never discussed at the task force. Below is a just a partial list of some of the problematic driver requirements, many that are unique to this ordinance and far outside what other cities have approved in Texas and beyond:

1. Get a full physical and eye exam before driving, even though an eye exam is

already required for a driver’s licen

se and any driver is already deemed

physically able to drive on Texas roads because they have a valid Driver’s

License 2. Take a pre-scheduled drug test, when the best way to prevent intoxicated drivers is having a zero-tolerance policy and constant feedback loop via the app that would enable TNCs to suspend anyone suspected of driving under the influence until an investigation is complete 3. Be certified that you can read and speak the English language, even though communication of pickup and destination can be done in-app with turn-by-turn

navigation. (Note: there are a number of deaf and mute drivers on the platform in other cities. Would they not be allowed on the platform?) 4. Complete a defensive driving course even though it is not required for drivers on the roads in the state of Texas 5. Have the vehicle subject to expensive, random checks even though they would also be required to have a third-party inspection by an ASE certified mechanic

On top of going through the TNC’s thorough background check, the driver must also

complete a 10 point fingerprint background check, even though the TNCs complete certified 3rd party background checks. The driver must also pay around $160 annually to the City of San Antonio in addition to the ~$150 in cost of all the requirements, equating to over $300 per driver, just to make themselves available to provide a service to other members of the San Antonio community. It is important to stress that these are all unnecessary hoops to go through for someone simply looking to utilize their car for some part-time work and help their fellow San Antonians move around the city. Cities like Austin have reviewed the TNC

s’ safety and

security protocols and deemed this marketplace safe and secure without the need of duplicative and/or unnecessary requirements.

The Proposed City Ordinance Sets Insurance Requirements Excessively Beyond Those Required Of Taxis And Deviates From A Clear Consensus Amongst Other Texas Cities Like Austin, Dallas and Houston

TNCs currently carry insurance that is protective of public safety and is specifically designed to cover the risk presented by the rideshare industry and is issued by a financially strong insurance carrier.

Uber’s ridesharing insurance coverage provides

end-to-end insurance coverage for partner drivers at all times during their use of the Uber smartphone application. This covers the driver's liability (a) while a driver is logged into the Uber smartphone application and available to receive ride requests; (b) from the time a driver accepts a trip request through the app; and (c) through the completion of the prearranged ride, until the passenger reaches his or her final destination and exits the vehicle.

Uber already voluntarily offers the following insurance protection:

●

$1MM in primary automobile liability coverage from the moment a driver accepts a ride request, is en route to pick up a requesting passenger and at all times a requesting passenger is in the car. This is more than 10x the amount of liability coverage taxis are required to carry in San Antonio.

●

Liability coverage of $50,000 for bodily injury per person up to $100,000 per