10 Facts About Using Uber, Lyft, and Taxis

• 

  1) Apps are transforming the way we hail our rides

  Smartphone apps used by Transportation Network Companies (TNCs) like Uber and Lyft allow drivers and riders to directly coordinate services in real time without a middleman like a taxi-dispatcher, thus increasing the speed and efficiency of matching riders with drivers. Credit card transactions make payment quick, easy, and cashless. TNCs avoid the high overhead costs of taxi dispatch services, and their global brands give them an additional competitive edge over traditional taxi companies. Taxi companies are responding with their own apps, and some cities are creating city-wide apps for all taxi companies to use.

• 

  2) How safe is it to be a driver?

  Traditional taxi drivers face higher rates of homicide than most other workers in the transportation workforce. By using smartphone apps, it is possible that risks to TNC drivers could be reduced by capturing passenger identity and by eliminating the need to carry cash.

• 

  3) Are background checks useful to protect the security of passengers?

  Taxi driver applicants are typically subject to criminal record background checks, which include fingerprinting them and searching for any criminal record in state databases. TNCs rely on private companies to screen applicants using state and national criminal record databases but don’t require fingerprint checks. Driver reviews and permanent records that TNCs keep on rides may deter crime. However, there is no comprehensive comparison about which approach leads to greater passenger safety.

• 

  4) What happens if there is an accident?

  Taxi services are covered by commercial insurance, which is much more expensive than personal auto insurance. It’s more complicated for TNCs, as drivers provide their own vehicles and are covered by the TNC’s commercial insurance when en route to a pickup or when carrying a passenger. The situation becomes ambiguous, however, when a TNC driver involved in a crash was headed to an area expected to contain potential passengers or was returning from dropping off a passenger, making the resolution of such cases more difficult for injured parties.

• 

  5) Will I potentially be discriminated against because of my race, ethnicity, or disability?

  Some evidence suggests that TNCs may provide better service in low-income and minority neighborhoods that taxis traditionally underserve. Taxis offer critical transportation for people with disabilities in many areas. TNCs, however, have attracted former taxi drivers into the TNC ranks, leaving an insufficient number of drivers available to use the wheelchair-accessible vehicles that taxi companies are often required to provide. TNCs do not currently provide wheelchair-accessible services on an extensive or reliable basis; however, they have introduced pilot programs to provide such services.

• 

  6) What if I don’t have a smartphone or a credit card?

  Many low-income households depend on taxis for certain trips. Individuals without smartphones (almost half of adults earning less than $30,000) and credit cards (17 million Americans) are unable to access TNCs.

• 

  7) What benefits are available for drivers?

  Drivers have few benefits whether they work for traditional taxis or for TNCs. The question of whether a driver is an independent contractor or employee of a company has many different legal dimensions. Some drivers for the new services are now in court over the matter. If taxi and TNC drivers are classified as employees, then this could increase the costs of these services.

• 

  8) Is distracted driving an issue with new mobility services?

  Distracted driving increases the risk of crashes, and drivers using apps have plenty of opportunities for distraction. There is no published research on this issue, but it is an important question to resolve.

• 

  9) Can I supplement income from my current job or work part-time as a driver?

  TNCs allow drivers to easily work part-time, in part because TNC drivers don’t need to cover stiff daily or weekly taxicab lease fees that taxi drivers must pay. But some drivers may not want to drive their own vehicle and the net income of TNC drivers after deducting depreciation and expenses may not compare favorably with driving taxis.

• 

  10) What’s the buzz about TNCs reducing drunk driving?

  Having sober drivers available to take people home after consuming alcohol can reduce the incidence of drunk driving and the injuries and fatalities that often result. TNCs may have an advantage over taxis in providing such rides because their “surge pricing” draws additional drivers into service in hopes of earning peak fares, which taxi drivers cannot charge. Early evidence suggests that the availability of TNCs may lead to reductions in drunk driving incidents, but the results aren’t yet conclusive.