Insurers laud passage of state ridesharing insurance bill
One of the nation’s largest insurance interests took a moment Thursday to applaud Montgomery lawmakers for their work on so-called “ridesharing.” The state Legislature passed a bill this week that Property Casualty Insurers Association of America state government manager says will “close the insurance gap” for customers when they use popular ride-hailing apps like Uber and Lyft. The legislation, SB 262 sponsored by Sen. Shay Shelnutt and Rep. David Faulkner, would require such services — called Transportation Network Companies or TNCs under state law — to insure their drivers when they are engaged in ridesharing, whether they have a passenger at the time or not. “Over the past several months, transportation network companies (TNCs) such as Uber have experienced tremendous growth in Alabama as they operate in several cities across the state including Birmingham, Mobile and Montgomery,” said PCCI’s Logan McFaddin. “However, SB 262 was needed to strike the right balance in protecting the public, closing the insurance coverage gaps and allowing for an increase in entrepreneurial activity. This bill ensures that the TNC driver who picks you up and drives you across town is properly insured, so that you and the public are not at risk if an accident were to occur.” “PCI commends Senator Shelnutt and Representative Faulkner for their great work and attention to this issue. SB 262 requires rideshare drivers to have the necessary insurance coverage from the time they log in to the app to the time they log out, which is a critical component to effectively protecting consumers and drivers,” concluded McFaddin. The bill provides insurance on each TNC driver’s call for up to $1 million for death, bodily injury, and property damage. Should Gov. Robert Bentley sign the bill which now awaits his signature, the bill will go into effect on the first day of the third month following its approval.
Birmingham Council postpones Uber vote as 5 councilors no-show
A scheduled vote on whether to approve new rules allowing ride-hailing services like Uber and Lyft to operate in the Magic City was postponed Tuesday afternoon for lack of a quorum required to vote. Council President Johnathan Austin, Councilman Steven Hoyt, Councilwoman Sheila Tyson, Councilwoman Lashunda Scales and Councilman Marcus Lundy did not attend the meeting, requiring members to adjourn before hearing the ride-hailing item on the agenda. The Birmingham City Council was slated to take up an ordinance that would allow so-called ridesharing firms to set up shop in the city by next month, along with other issues. Council members Jay Roberson, Valerie Abbott, Kim Rafferty and William Parker were in attendance. They waited about an hour before telling an increasingly restive audience the meeting would have to be scuttled. The delay may push back the beginning of Uber’s operations in Birmingham until 2016. “It’s disappointing that Birmingham residents have to continue waiting for safe rides and economic opportunity,” said Uber spokesperson Kaitlin Durkosh Tuesday. “We look forward to the draft ridesharing regulations from last week’s Committee of the Whole meeting crossing the finish line next Tuesday, so that we can bring ridesharing to Birmingham in advance of the New Year,” said Durkosh. Some Birmingham residents took to the “Magic City Movement” Facebook page established to support Uber’s efforts to voice their displeasure with the councilors’ actions. “Collusion,” is what user Sam Lewis chalked it up to. “Everyone in the BCC ignoring the people’s voice on this extremely important matter deserve to be reprimanded by not receiving your vote during the next election.” Another group member, Kris Reeves, opined: “These people, who were put in charge to lead our great city, are holding us back. I constantly defend Birmingham, but things like this make it extremely difficult. They are keeping us the laughingstock of major US cities.” Planned votes on several road improvement projects and re-upping the contracts of city consultants also were casualties of the no-show. Council President Austin said the members missed the vote because “most people are out of town visiting family for Thanksgiving.”
Movement to bring Uber to Birmingham building momentum fast
A weeks-long organized effort to bring ride-hailing services like Uber and Lyft to Birmingham seems poised to cross the goal line in the near future. An outpouring of public support both from citizens – including via “Draft Uber”-style drive on social media – had been reciprocated by elected officials. City Council President Johnathan Austin declared yesterday that the city “definitely wants” Uber in town. Mayor William Bell has also signified his support, and has agreed to an expedited process that will accelerate the drafting and passage of a pro-ridesharing city ordinance. A spokesperson for Uber confirmed the progress on Thursday. “Based on today’s conversation, we’re optimistic that City Council is on a path towards bringing ridesharing to Birmingham,” a spokeswoman told Alabama Today. “We thank Council President Austin for his leadership, and look forward to working with City Council on an ordinance that aligns with the nearly 50 US jurisdictions with pro-innovation, pro-consumer ridesharing regulations.” Negotiation with the Magic City’s municipal government occurred last summer as well, but the two sides could not come to an agreement so talks fizzled. Talks broke down along lines familiar to those who have watched the ridehailing vs. taxis political/regulatory food fight that has occurred across the country – background checks, insurance requirements and taxes. Uber recently staged a unilateral pullout in South Florida’s Broward County after commissioners there attempted to fold ridesharing services – with some minor tweaks – into regulatory scaffolding that governs taxi cabs there. Representatives from Uber said that was not fair, because their business model is entirely different. Back in July local businessman Bill Smith – CEO of grocery delivery service Shipt – started a GoFundMe page to raise money for pro-Uber advocacy efforts. The drive surpassed its $10,000 goal easily. Council President Austin said Wednesday he hopes to have the new rules allowing for Uber and similar services to operate in Birmingham within one month from yesterday’s meeting of the city Transportation Committee.
