Small Businesses Of Upstate New York Are Under Attack By Billion Dollar Corporations!

Uber & Lyft are attempting to expand to Upstate New York & operate unregulated! Allowing these companies to enter the marketplace unregulated, creates an “un-level playing” field between the Transportation Network Companies & traditional Taxi & Limousine companies.

Upstate Taxi & Limo Companies are mostly small businesses.  Based upon sales data obtained from SalesGenie.com. *569 Transportation companies are located within the Upstate New York Region. A majority of these small businesses are owned by local residents and not large corporations. These transportation companies are reasonably estimated to employ between *5,000 and *10,000 tax-payers.

• 326 companies have 1-4 employees
• 83  companies have 5-9 employees
• 57  companies have 10-19 employees
• 82 companies have 20-49 employees
• 14 companies have 50-99 employees
• 6   companies have 50-99 employees
• 1   company has 250+ employees

Additional facts about Traditional Taxi & Limousine Companies in Upstate New York:

• Small Transportation businesses pay workers comp benefits for their employees.
• Upstate New York Limo & Black Car companies collect sales tax revenue on their transportation services. New York State annually takes in about $25 Million.
• Upstate Limousine & Taxi Company owners & employees spend their wages & profits in their local markets stimulating local economies.
• Upstate Limousine & Taxi businesses support local Charites & Community organizations.
• The Rochester Market has Taxi drivers who are members of Organized Trade Labor Unions.

 New York State Defines ‘For-Hire’ Transportation as: 

'For-hire' is defined as the business of carrying or transporting passengers for compensation (direct or indirect). For-hire also includes private rental vehicles that are leased or rented to an individual or organization who is not the title owner; while the registration remains in the owner’s name.

 All Taxi, Limo, Livery, Black Car & Transportation Network drivers meet this definition!

 New York State requires All ‘For-Hire’ Transportation Companies to have:

• Commercial ‘For-Hire’ Insurance- No other alternative insurance products are accepted by New York State. (New York State Vehicle & Traffic Law Article 8 Indemnity Bonds or Insurance Policies on Vehicles Transporting Passengers For-Hire)
• Class E driver’s license or Taxi License
• Vehicles registered using “Taxi” or “Livery” License plate.-Personal auto license plates are prohibited by New York State.( New York Motor Vehicle law Article 14 )

Current legislation A.6090-A (Cahill)/ S.4280-A (Seward) &, A.08195 (Cahill)/ S.04108-C (Seward) does not address all of the issues pertaining to Ridesharing. A comprehensive bill addressing ALL of the issues needs to be created.

 A comprehensive bill should include legislation addressing these issues:

• Fingerprint Background checks- ALL ‘For-Hire’ transportation drivers should be require to undergo fingerprint background check to ensure public safety.
• Accessibility for the handicap- Limo & Taxi Companies are mandated by the Americans with Disabilities Act to not discriminate against individuals with disabilities. Transportation Network Companies should be required to modify their services to accommodate handicap users.
• Hybrid Insurance policies- If Transportation Networks are eligible to purchase Hybrid insurance policies, Taxi, Limo, Livery & Black Car companies should also be eligible to purchase same insurance products. Average cost for a Taxi or Limo company to purchase Commercial ‘For-Hire’ insurance costs annually $4,000-$5,000 per vehicle. Hybrid policies may cost annually $1,500 per vehicle.
• Auto Financial Fraud- Legislation needs to be created to protect banks, finance & Auto leasing companies. Most banks have policies prohibiting lending for vehicles being used as commercial ‘For-Hire’ vehicles. (M&T Bank, Chase Bank)
• Exposure to litigation- Auto leasing companies may be exposed to lawsuits if leased personal vehicles are used as commercial ‘For-Hire’ vehicles.
• Predatory Lending- Transportation Network drivers need protections in place preventing predatory lenders from targeting individuals for subprime auto loans.Most banks have policies prohibiting lending for 'For-Hire' vehicles.(M&T Bank, Chase, Bank)
• Sales Tax- If Uber is reclassified by New York State from a Black Car Company to a Transportation Network, how will New York State replace the lost sales tax revenue? Uber contributes a large portion of the $25 Million collected. This revenue has already been accounted for in the 2016 State Budget. If New York State repeals the Sales Tax for Transportation Network Companies will the state repeal the law for all Limo & Black Car companies?
• Taxi Limousine Commissions- New York State should create Taxi Limousine Commissions for each County to ensure consistency of the state’s Motor Vehicle & Traffic Laws & regulations that govern ‘For-Hire’ Transportation.
• Home Rule- All Transportation Network Companies should not be exempt from local regulation or ordinances. Transportation Network drivers should comply with all local regulations & ordinances that traditional Taxi & Limo drivers are required to comply with.
   

Our industry is not looking to block new technology from entering the marketplace. We are not trying to block competition from entering the marketplace. Our Association is simply asking for a “Level Playing Field” for all ‘For-Hire’ Transportation companies to operate statewide.

 Thank you!

*Information used was obtained through Salesgenie.com using (716), (585), (315), (607), (518) area codes.