Proposed Rules: Closed to Comments
Statement of Basis and Purpose of Proposed Rule
A number of companies have approached the TLC about introducing services that would allow taxicab passengers within the City to arrange on demand taxi service through an electronic hail (E-Hail) application sent from a smartphone or other electronic device. Passenger survey data obtained by the TLC indicates that more than 50 percent of respondents were interested in the ability both to E-Hail a taxicab (57 percent) and to pay the fare (55 percent) using an electronic device (E-Payment). TLC’s current regulations, many of which predate E-Hail technology, do not contemplate either E-Hails or E-Payments.
As E-Hail applications have emerged, TLC has undertaken serious diligence in exploring options that will encourage innovation and provide new and desired services to taxi passengers. To assess the impact of expanding such passenger amenities, TLC conducted a one-year E-Hail Pilot which began on April 26, 2013.The results of the pilot suggest that TLC continue to allow E-Hails beyond the Pilot period. The pilot data shows that E-Hail Apps help increase the efficiency by which passengers and drivers are connected, and that they do this without negatively impacting the FHV industry or the general taxi hailing public. To continue E-Hail and E-Payment services, TLC and the City must establish rules for E-Hails.
The proposed rules, which apply to medallion owners, application developers and taxicab drivers who may engage in E-Hails, will allow passengers to E-Hail New York taxicabs and make E-Payments, subject to certain restrictions.
The proposed rules:
· Add definitions to include terms related to E-Hail.
· Modify requirements for drivers for E-Hail Application and E-Payment use.
· Require drivers to utilize only E-Hail Applications licensed and approved by TLC.
· Require that the taximeter be used to calculate the time and distance charges for all E-Hail trips.
· Prohibit a driver from charging a passenger any fee above TLC-approved rates for an E-Hail trip.
· Require E-Hail Applications that also provide E-Payment to be integrated with T-PEP and Trip Record information to be collected by T-PEP for E-Hail trips.
· Add provisions regarding Owner payments to Drivers for E-Hail trips.
· Clarify when and where a Driver may use an E-Hail Application and establish restrictions on the use of E-Hail Applications by a Driver, including locations where E-Hail Applications may not be used.
· Modify T-PEP requirements to clarify the required integration between T-PEP and E-Hail Applications.
In addition, these proposed rules provide for the licensing of E-Hail application providers. The proposed rules also establish standards for usage, security and other features to ensure that application usage does not interfere with the ability of the T-PEP technology to collect and accurately record trip data. Specifically, these rules:
· Establish licensing standards and requirements for E-Hail application providers.
· Establish a one year license term.
· Require applications that also provide E-Payment to integrate with T-PEP.
· Set forth technical requirements for E-Hail applications.
· Set forth security standards for E-Hail applications that process payments.
The Commission’s authority for these rules is found in section 2303 of the New York City Charter and sections 19-503 and 19-511 of the New York City Administrative Code.