New Orleans takes step in right direction on ridesharing
New Orleans has traditionally been hostile to the sharing economy. Airbnb and other room-sharing services are still effectively outlawed in the Crescent City. Ridesharing companies have not had it any better, which is why the city got a D+ on R Street Institute’s inaugural Ridescore.
UberX and Lyft are still essentially outlawed, but New Orleans could be looking to change that. Following in the footsteps of nearby Jefferson Parish, the New Orleans City Council is considering a bill to legalize and regulate ride-sharing.The Hayride reports that the council’s transportation committee approved an ordinance to allow ride-sharing companies to operate.
Uber Black, marketed as the solution to bad taxi services, is already operating in New Orleans after the City Council legalized the use of digital dispatching for car services back in September of 2014.
However, since Uber Black was legalized last year, the City Council proposed an ordinance back in January which would basically legalize Uber entirely.
Uber’s ‘ride-sharing’ service would allow for individuals to use their own vehicles to transport Uber customers around the city.
Though debate has sparked about how Uber would be allowed to offer ‘ride-sharing’ while bypassing city regulations that taxi cab drivers are mandated to follow, the City Council could be looking to roll back regulations for a change.
Interestingly, the city is also thankfully taking this opportunity to look at reducing the regulations on taxi cab companies. City councilmen and officials seem to agree the taxi industry was overregulated.
Among the requirements the city is considering to mandate for ridesharing companies is not permitting vehicles older than seven years to be used, requiring background checks be conducted by the ridesharing companies, requiring the vehicles be marked with the ridesharing company’s logo when it’s in service and commercial liability insurance would be required. Most ridesharing companies such as Lyft and Uber already would meet most of these requirements, particularly in the areas of background checks and insurance.
It seems that New Orleans is working on a way to create a win-win situation for travelers in the Crescent City. The city is going to allow choice between traditional taxicabs and more modern ridesharing services. This will improve rates and service for both locals and tourists alike through free-market competition.
The City Council should also follow through on its inclination to deregulate the taxicab industry. New Orleans has already proven it become a leader in innovative ideas, as demonstrated with its leadership on school choice. New Orleans needs to take this opportunity to become a leader in transportation choice.
