S.F., L.A. threaten Uber, Lyft, Sidecar with legal action

[Starry Messenger]

http://www.sfgate.com/bayarea/article/S-F-L-A-threaten-Uber-Lyft-Sidecar-with-5781328.php

The San Francisco and Los Angeles district attorneys have sent letters to ride-share companies Uber, Lyft and Sidecar claiming they are operating illegally and warning them that legal action could follow if they don’t make major changes.

The two district attorney offices conducted a joint investigation into the ride-share companies and found a number of practices that violate California law. The prosecutors say the practices represent “a continuing threat to consumers and the public.”

<snip>

The district attorneys told all three companies that they misled customers by claiming their background checks of drivers screen out anyone who has committed driving violations, including DUIs, as well as sexual assault and other criminal offenses. The district attorneys say that’s patently untrue.

Gascón in June charged Uber driver Daveea Whitmire, 28, of striking a passenger. He had passed the company’s background check, but court records showed he had previously been convicted of felony drug dealing and misdemeanor battery.

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[KeepItReal]

1. They'll have to pry my Uber app from my cold, dead, hands

As many problems as I've had with getting Taxis in the SF Bay Area, Uber is a godsend.

[Starry Messenger]

2. Well, I'm not sure how it will work with no Uber cars on the other end.

[KeepItReal]

21. We'll see how far the regulations and litigation goes

eom

[LeftyMom]

3. Good. They're not following the law on things like insurance,

and they're putting their passengers as well as their drivers at risk. They're also cutting driver pay while making a mint.

Tech buzzwords do not exempt them from the law.

[Starry Messenger]

4. I just read that Lyft drivers just got a pay cut.

They're furious.

The article didn't go into the misleading messages about insurance, but people who get into those cars are taking a huge ass risk.

"Gascón wants the companies to remove all statements from their mobile apps, websites and other publications that imply their background checks reveal drivers’ complete criminal history."

I'll be glad when this is done too. The amount of furious people I run into online that INSIST that everything they read on the app *must* be true, because reasons, is simply scary. I'm surprised more people haven't gotten victimized by an unscreened driver.

edit: case in point http://www.democraticunderground.com/10025586008

[LeftyMom]

7. Uber keeps cutting driver pay.

http://losangeles.cbslocal.com/2014/09/02/uber-defends-slashing-drivers-rates-amid-la-protest/

[div class="excerpt]"“I’ve experienced four cuts since I started. It was $2.50 a mile when I started a year-and-a-half ago, and now we are at $1.10 a mile. You can’t make a living off of that,” she said.

Drivers at the protest blamed the cuts on competition from similar services like Lyft.

“At the beginning, it was $2.50 a mile. People, they financed cars, they bought cars. They made money at the beginning,” driver John Dabbah said. “Now they are dropping the price day after day without even asking the driver.”

Uber currently takes a 20 percent commission and each driver pays for their own insurance and gas.[/div class="excerpt"]

Apparently they've raised their cut to 25% this week.

[Starry Messenger]

11. Did they both just go public or something?

What a race to the bottom for the drivers.

Lyft Just Slashed Driver Pay Again, And Everyone's Pissed

http://valleywag.gawker.com/lyft-just-slashed-driver-pay-again-and-everyones-pisse-1639225232

"Lyft just gutted their premium Lyft Plus service, leaving drivers with $34,000 luxury SUVs. Now the on-demand ride company is screwing their drivers again, slashing rates by ten percent in Los Angeles.

Lyft announced the cuts in an email to all drivers, reminding them "the more you make, the more Lyft makes, so your earnings are our top priority." But one Lyft driver explains to Valleywag that drivers aren't buying it:

Please bear in mind, drivers in LA were barely making more than minimum wage prior to today's 10% price decrease. Drivers are pissed off. There will still be people desperate enough for money that will be driving, of course. Until their tires blow and they can't afford to replace them. Or until tax time

."

[LeftyMom]

15. They're both moving that direction, and Uber says Lyft wants to buy them.

IMO everybody involved wants to make their money and cash in on an IPO before the drivers defect and/or the regulatory hammer comes down. Their current model is not sustainable.

[Texasgal]

5. Same thing is happening here in Austin.

The popo is actually going undercover to impound cars.

[Starry Messenger]

6. That does suck for the drivers.

I don't think these companies do their drivers or customers any favors by misleading on what regulations they aren't following.

[Texasgal]

8. The deal is that Uber and Lfyt

are cheaper than cabs.

I'm totally okay with peer or peer driving.

I mean hell, we have drunk driving free rides from people as well as rickshaws with no oversight... why this?

[Starry Messenger]

10. Well, it's illegal and the companies aren't following safety regs.

That's probably why it is cheaper. Kind of expensive if you get injured in one and the insurance doesn't exist to cover your hospital bill though.

I know nothing about rickshaws, are they motorized? Free rides for drunks are free, so the government wouldn't need to regulate them.

[Texasgal]

12. Rickshaws are not motorized.

They are dudes on bicycles that ferry people around town. The safe ride home is sponsored by MADD which may or may not have all these regs that you speak of. Alot of church groups participate in this as well.

I guess my big issue is that this regulation will go too far. The cab industry is huge... why not allow uber or lyft to cooperate with insurance? I'm okay with legality... but I fear that that the regs will go too far.

Please do not say that I am a libertarian because I am not... with this issue I just feel differently.

[Starry Messenger]

14. I don't think you're a libertarian. :)

It's just that the unregulated car services are wide open for damage to customers as things are now.

Check out this thread: http://www.democraticunderground.com/10025586008

If Uber or Lyft cooperate with insurance, as they should, because things as they stand now are scary--then prices will definitely go up.

The Department of Transportation regulates motorized vehicles that are used for commerce in any way. That's why the rickshaws might not have the same regulations, but I would guess there is probably a county process they still go through for regulations.

Church groups or MADD aren't charging money. If Uber drivers want to switch over to volunteer work, they won't have to worry about regulations.

[LeftyMom]

16. The regulations are reasonable and both companies can certainly afford them.

They need:
A livery insurance policy that applies to all vehicles at all times
A dmv pull notice that sends regular updates on their drivers' DMV status to the company
To have their cars inspected by airports they service
A random drug testing pool for their drivers

These are legal requirements for any business that drives people around for pay.

[kwassa]

13. Uber is sometimes cheaper ... and maybe not ...

local story about a woman who took Uber to a concert, and then was quoted a $200 price to go home in their surge pricing.

Washington, DC area.

Local cabbies have seen their income decline from 35% - 75%.

[LeftyMom]

9. The apps book rides at airports where they're not permitted

the drivers are on the hook for a very expensive ticket if they get busted. The companies know damn well they dont have airport contracts. They can afford to pursue them, but why bother when they can shift yet another expense to their drivers?

[KeepItReal]

17. The Uber software won't let a non-commercial driver make a drop-off at SFO

I've been refused a ride to SFO (first time regular Uber-X was used to go there) by a driver.

I didn't realize you have to use the Uber Black Car (fully accredited) service.

Uber-X (regular folks using their personal vehicles) drivers may spoof the system to bring customers to airports, but that is not on Uber and the driver assumes the risk if the Airport Police catch them for making unlicensed drop-offs.

[LeftyMom]

18. SFPD wrote a lot of tickets to make that happen.

I know Lyft drivers are pulling the mustaches off and grabbing airport rides, there was a BBC story about them recently and the driver did this (while explaining why) during the interview. That was at LAX.

[KeepItReal]

20. They should and will keep writing those tickets

If you wanna drive people to the airport as an Uber X driver, pay the license fees just like everyone else.

I never wanted to game the system to get a cheaper ride to the airport.

I just wanted a reliable ride to SFO. Taxis in my area are hard to get.