State of Illinois should not strip regulatory control of transportation network companies from Chicago, other cities
CHICAGO (Nov. 18, 2014) – Chicago performs reasonably well among big cities in friendliness to transportation network companies like Uber and Lyft, and state lawmakers should not usurp the city’s authority to regulate these services, the R Street Institute said today.
“We’re glad to see that Gov. Pat Quinn vetoed recent state legislation that would have made it far more difficult for TNCs to operate in the Windy City, and we would encourage lawmakers not to override that veto,” said Zach Graves, R Street policy fellow.
Chicago earned a “B” grade for its TNC regulatory framework as a part of Ridescore 2014: Hired Driver Rules in U.S. Cities, a joint research study between R Street and Engine to grade 50 of the largest American cities on their legislative framework and friendliness toward TNCs, taxicabs and limousines. Graves added that Chicago’s approach to TNCs “clarifies important liability questions and brings ridesharing out of the legal gray market.”
The study gives the city high marks for its approach to TNCs and to limousine regulation. However, due in part to its medallion system, Chicago received a “D” grade for taxi regulation, resulted in an overall grade of “C+.” A full explanation of the methodology and scoring can be found in the study.
Gov. Quinn vetoed legislation in August that would have made it much more challenging for TNCs to operate in Chicago and the rest of the state by imposing onerous restrictions on rates and electronic tipping, among other requirements that make for bad policy. Lawmakers in Springfield are expected to vote tomorrow to attempt to override the governor’s veto.
“While there is value in clarifying important questions of insurance, safety, and other issues concerning TNCs, Chicago already has a reasonable legal framework in place. A heavy-handed state bill would only serve to undo the progress that has been made in Illinois’ primary market for ridesharing,” Graves said.
R Street has introduced a user-friendly website at ridescore.org that outlines all of the cities and grades from its study. Washington, Minneapolis and Fresno, Calif. scored the highest among major U.S. cities, earning the only combined “A” grades in the study. At the other end of the spectrum, Las Vegas and Portland, Ore. received combined grades of “F,” with Kansas City, Mo.; Philadelphia; and San Antonio, Texas just marginally better, with grades of “D-.”
R Street will host a panel discussion on regulations in cities across the nation on Wednesday, Nov. 19 at 6:30 pm in Washington. The event is open to the public and details can be found here.
