[nfbmi-talk] FW: [msb-alumni] Another Ride Share Service to Launch in Detroit

Fred Wurtzel f.wurtzel at att.net
Sat Mar 29 23:37:19 UTC 2014



 

 

From: msb-alumni-bounce at freelists.org
[mailto:msb-alumni-bounce at freelists.org] On Behalf Of Steve
Sent: Saturday, March 29, 2014 12:51 PM
To: msb-alumni at freelists.org
Subject: [msb-alumni] Another Ride Share Service to Launch in Detroit

 

FYI for those who live or might be visiting Detroit or the surroundings.

 

Another ride-share service to launch in Detroit Friday night By JC Reindl
Detroit Free Press Business Writer Another ride-share service has rolled
into metro Detroit amid a controversy over such transportation businesses
that use teams of regular drivers rather than fleets of taxis and
limousines. Lyft, which is based in San Francisco and operates in 28 U.S.
cities, was scheduled to launch its Detroit service at 7 p.m. today that
will extend into the suburbs. The two-year-old company uses a smartphone
application to match fare-seeking drivers with riders, similar to competitor
Uber, which has been in Detroit for a year . Uber was served in February
with a "cease and desist" order by the city, yet continues to operate. Both
companies assert that existing state and city regulations for cab and
chauffeur businesses should not apply to them, as they don't own fleets of
vehicles and instead function more as high-tech coordinators and middlemen.
But local taxi and limo services such as Detroit-based Checker Cab have
expressed concerns about the newcomers circumventing laws and fee
requirements that still apply to them. Police can ticket Uber drivers who
fail to get licensed as drivers for hire, although no tickets have been
given out. Lyft and Uber's entry-level service, UberX, recruit regular folks
to become drivers using their personal vehicles. Both companies say they
conduct thorough background checks, although neither requires drivers to buy
commercial-grade insurance or obtain "vehicle for hire" licenses with the
state or City of Detroit, as traditional limo and taxi drivers must. Lyft
and Uber take a 20% cut of passenger payments and let drivers keep the rest.
Lyft is unique in that it doesn't automatically deduct the cost of a ride
from a passenger's credit card account, but suggests a donation based on
trip length. Lyft and UberX rates are similar to mandated Detroit taxi cab
rates. For Lyft, that means $1.60 per mile, plus 20 cents per minute and a
$1 "trust and safety fee. Passengers can pay less or more than the suggested
amount with any extra considered a driver tip. Other unique features: Lyft
drivers are encouraged to greet passengers with a fistbump and attach a
large and fuzzy pink mustache to their vehicle's front grille. In an
interview Friday, Lyft spokeswoman Paige Thelen said very few passengers
abuse the donation system for a free ride. "We've actually found that most
passengers leave more than the suggested donations," she said. Lyft and Uber
have encountered regulatory problems in cities across the country with their
unconventional business models. Another gray area is insurance coverage.
Without commercial insurance, drivers for hire risk having their claims
rejected following an accident because personal auto policies in Michigan
typically forbid livery service. However, Lyft says its drivers and
passengers need not worry as the company has a $1-million excess liability
coverage policy for passengers and collision coverage with a $50,000 maximum
for damage to a driver's vehicle. "It's obviously a case-by-case basis, but
we believe that we're providing very sound coverage and that these drivers
and passengers are protected," Thelen said. Alexis Wiley, a City of Detroit
spokeswoman, said Lyft representatives recently contacted the city although
no determination has yet been made whether its business complies with the
law. Lyft is hoping that Detroit officials consider revising the regulations
concerning chauffeurs. "These people are using their own cars," Thelen said.
"They're not driving 50, 60 hours a week, they're maybe driving five, seven
hours a week when they have some free time," she said. Meiyi Cheng, 23, a
recent college graduate who is new to Detroit, was among the dozens of
prospective drivers at Lyft's launch party Thursday night inside a former
vehicle repair garage in Corktown. "I feel it's a very good opportunity for
me to explore the city a little bit and earn some money," she said.
Additional Facts Lyft │ Ride service based in San Francisco │ Relies on
smartphones and a team of regular folks as drivers │ Offered in 28 U.S.
cities, including metro Detroit and Cincinnati on Friday │ Has more than 200
employees nationwide, including two in Detroit.

 

 

Steve
Lansing, MI

 

-------------- next part --------------
A non-text attachment was scrubbed...
Name: Blank Bkgrd.gif
Type: image/gif
Size: 145 bytes
Desc: not available
URL: <http://nfbnet.org/pipermail/nfbmi-talk_nfbnet.org/attachments/20140329/51ca11cc/attachment.gif>


More information about the NFBMI-Talk mailing list