Calif. DMV Back-Pedals On Commercial-Plate Mandate For Ride-Share Drivers

The San Francisco Chronicle reports that In an abrupt U-turn, the California Department of Motor Vehicles late Friday retracted its finding that drivers for ride-hailing services like Uber, Lyft and Sidecar must obtain commercial license plates. That determination — based on a 1935 state law — ignited a firestorm of criticism from the San Francisco startups and their supporters as stifling innovation. Commercial licenses are cumbersome to obtain, meaning they could impede the companies’ growth, which relies on getting new drivers, many of whom work just part time, into service quickly. And commercial registration probably would have necessitated that drivers get commercial insurance, which is significantly more expensive than personal auto insurance. Republican Assembly members threatened legislation over the “nonsensical” interpretation if the DMV didn’t reconsider its stance before Feb. 17. Now the department says it will do just that. That doesn't mean drivers for companies like Uber and Lyft can expect to be left alone by the DMV, though, which according to the article "will meet with regulators and the industry to work through the issue."

Comments

Insurance

[Rei]

Why, exactly, should Uber drivers get to drive passengers using regular non-commercial drivers' insurance? Commercial insurance costs more because people who drive people around for a living are much more likely to cost the insurance companies more money. If you're letting them drive on non-commercial licenses than that means that regular drivers are subsidizing Uber-drivers.

Re:Insurance

[ShanghaiBill]

I once drove some of my daughter's friends home from a birthday party. Should I have had to have a commercial driver's license?

How much were you paid?

Re:Insurance

[Xenx]

The difference is the Uber/Lyft drivers are actually employed to do the driving. Realistically, the drivers wouldn't be giving those passengers a ride if they weren't being paid for it. From a personal standpoint, I don't have a problem with the driver not having commercial insurance. However, in that case the company needs to insure the driver when "on duty".

Re:Insurance

[ShanghaiBill]

Wait, I thought it was about the extra risk of driving passengers around.

No. Commercial licenses are not required for "driving passengers around". They are required for commercial (paid) driving.

You're saying money changing hands impacts how often the accidents happen?

No, but money changing hands (commerce) impacts whether it is "commercial", and requires a commercial license. If we aren't going to require commercial licenses for commercial driving, then why even have them at all? Why should taxi drivers need commercial licenses either? Uber/Lyft should be allowed to compete in a fair marketplace, and taxi monopolies should be abolished. But that should not be done by giving them special privileges that taxis don't have. We should not swap one rigged system for another.

Re:Insurance

[kamapuaa]

But here we sit, arguing about whether people should be able to use their cars as they see fit.
Except that's not what's being argued. People can still use their cars as they see fit, they just have to pay more for licensing and insurance, to cover the increased road use and insurance liabilities. That sounds a lot more reasonable and realistic then a complete overhaul of the "goddamned" health care service.

And, Uber isn't a ride-share program where you find people to tag along on your road trip. It's an unlicensed taxi service. I doubt a proliferation of slightly cheaper taxis keeps a non-trivial number of people from purchasing a car of their own.

Re:Insurance

[ShanghaiBill]

everyone should be held to the same standard while driving, regardless of reason.

This is nonsense. The whole point of commercial licenses is that professional drivers should, and are, held to a higher standard. If you are only marginally competent, you may be able to keep a class "C" license that allows you to commute to work, but you should not be carrying passengers for hire, or driving big commercial trucks. There is nothing "unfair" about that.

Re:Insurance

[FatdogHaiku]

Wait, I thought it was about the extra risk of driving passengers around. You're saying money changing hands impacts how often the accidents happen?

Increasing the amount of miles you drive on a daily basis will alter the odds you will be in an accident. Being a for hire service makes the odds of a lawsuit higher. So, more time in traffic, more passengers of unknown temperament expecting commercial quality service and protection, no mandated maintenance or inspections. I would expect commercial insurance and drivers license to be a minimum in every state.
My insurance went up when I reported increasing my miles per year, and I don't have a passenger that will sue on board... I'd also bet there will now be language in your insurance policy that voids all but minimum coverage if you use the vehicle for commercial gain without having previously reported that fact to your insurer. If they write a policy, the type use of the vehicle is stated in the policy, mine has been for years. Non-commercial, no other drivers, under 12,500 miles annually... all in black and white...
I wonder if Uber drivers insurance policies are already actually void due to fine print.

read your contract

[swell]

Your insurance papers will probably make it clear that you are NOT covered for commercial use of your vehicle. Even if you don't read the policy, you know in your heart that commercial drivers pay more than ordinary drivers. Lots of people think they can deceive their insurance carrier and save money. The company gets the last laugh when it's time to pay for a claim. Any deception on the part of the insured is likely to negate the contract and no claim will be awarded. Yes, possibly years of payments to that company and all for nothing because you lied.

Like the people who watch your credit worthiness and the people who observe you for terrorist tendencies, the insurance industry has vast resources focused on you. If you try to cheat any insurance company, the word is spread and none of them want to deal with you. If you can get insurance it will be very expensive. Honesty is the best policy.