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Texas Regulators Crack Down on App-Driven Hauling Service

According to the Austin American-Statesman, it's not just ride-sharing companies like Uber drawing attention from regulators, at least in Texas, but also a similar service that's hauling goods rather than people. In a letter demanding that Austin-based Burro cease its phone-coordinated delivery service, Texas Department of Motor Vehicles director of enforcement William P. Harbeson says that "[a]nyone moving household goods in a pick-up truck or other type or size of vehicle for hire is required to register" with the Department, "and show proof of insurance in the amounts required by law." According to the letter, this includes not just professional or even regular haulers, but also people moving a piece of furniture bought at a garage sale for pay; considering the number of people offering that kind of service on Austin's Craigslist, or in the parking lot of home supply stores like Home Depot, it seems like a regulation that will put a dent in the wallet of quite a few people. Burro, for its part, says its providers "are backed by $1M in insurance" — more than can be said for one of the obvious substitutes, which is relying on friends or acquaintances with a roof-rack and some bungie cords.

24 of 167 comments (clear)

  1. Well by Etherwalk · · Score: 2

    For moves of significance, should be requiring $1M insurance and webcams in the trucks. Stealing shipments from moving companies (sometimes with inside men) is big business.

    For moves of one piece of furniture with value $1K, should be requiring a photo of the vehicle and guy be texted to law enforcement before loading. Done.

  2. Re:burro means donkey by Opportunist · · Score: 2

    So, essentially, they are talking out of their ass.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  3. I smell money grab by Snotnose · · Score: 3, Interesting

    I have a couch, you have a pickup. Does it matter if I've known you for 20 years or if I give you $20?

    1. Re:I smell money grab by ganjadude · · Score: 2

      lets be real. its all about the govt wanting more $$$, nothing else

      --
      have you seen my sig? there are many others like it but none that are the same
    2. Re:I smell money grab by jopsen · · Score: 2

      Nice try, I'm pretty darn certain this isn't what they're going after, paying a buddy gas money to haul your couch. What they're going after is, people who are "your buddy" for hire and make a living off of hauling shit around without the proper licensing and quite likely half of it is under the table...

      Thanks for the common sense here... I totally agree.

      It's the same thing with Uber and ride sharing services, no authority cares if you ride-share with a friend, co-worker or neighbor, the problem is when apps tries to organize these kinds of "friend"-services, which makes them a commercial enterprise that doesn't honor regulation.

    3. Re:I smell money grab by w_dragon · · Score: 2

      This is false. A pilot with a private (non-commercial) license may fly a passenger who reimburses them for the expenses of the flight, including plane rental and fuel. It doesn't become commercial until they make a profit.

    4. Re:I smell money grab by thetoadwarrior · · Score: 2

      You say that until one of these guys runs into your vehicle and you get nothing because he's not running a proper business. A lot of rules seem stupid when everything runs smoothly but they aren't there for when things run smoothly.

    5. Re:I smell money grab by Xolotl · · Score: 2

      Yes, it's "on you" (the driver/truck owner) but that doesn't help the little old lady when his non-commercial insurance refuses to pay because at the time of the accident he was engaged in commercial activity against the terms of his insurance policy. And that clause is there because a commercial driver does many more miles (also in a more loaded vehicle, with longer braking etc.) and thus has a much higher risk of accident in a given time period than a non-commercial one, thus the premium should be and is higher.

      People doing regular commercial hauling without proper licensing and insurance are getting the benefits of commercial work while skirting the responsibilities (insurance, probably commercial vehicle maintenance and loading standards, likely taxes as well, much of it is probably off-the books), off-loading the costs on everyone else. These regulations didn't appear magically, they evolved for a reason.

    6. Re:I smell money grab by tompaulco · · Score: 2

      This is false. A pilot with a private (non-commercial) license may fly a passenger who reimburses them for the expenses of the flight, including plane rental and fuel. It doesn't become commercial until they make a profit.

      No, this is false.
      The costs can be shared equally, but if you exceed an equal share, it becomes commercial. There have even been some cases around people publicly advertising that they were going to place X and willing to share costs. The FAA considered that offering services publicly and declared it commercial.
      Being profitable is not the condition for commercial use. Plenty of for-profit businesses don't make a profit. That doesn't mean they don't have to be licensed.

      --
      If you are not allowed to question your government then the government has answered your question.
  4. More Bullshit by sixsixtysix · · Score: 2

    Another case of something being perfectly legal if done for free (your friends helping you move or giving someone a ride) or by yourself (ripping your own[ed] media, or recording television services you subscribe to), but the moment money changes hands, everyone wants a cut. Utterly sickening. I guess they better crack down on paying anyone with beer/food as well.

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    ...
  5. History of Regulator Jobs by retroworks · · Score: 4, Interesting

    As a former (1992-99 Boston MA USA) regulator, I smile. Regulator jobs were created because the average person didn't have access to information and it was worth it to pay taxes to hire people to regulate the service providers. The other two parts of the job were raising income for the state and protecting the commercial services / upstream market, but from Upton Sinclair times the protection of the consumer was the regulatory driver.

    Protecting the consumer ordering the service is disrupted. The reputation (likes/dislikes/negative feedback) model does the equivalent of what Ebay did to print journalism. Print news made 1/3 from subscriptions, 1/3 from ads, and 1/3 from classified (my great grandparents-parents worked in newspaper market).

    The newspapers were slow to embrace online classifieds because it wasn't in the marketplace they had cornered.... and they lost it. Regulators are now like new editors, they know the feedback system protects consumers, and they also know that's 1/3 of their jobs. I suspect most regulators are less adept than news editors.

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    Gently reply
    1. Re:History of Regulator Jobs by Trax3001BBS · · Score: 2

      Feh, the meat packing regulations supposedly inspired by Sinclair were created at the behest of the meat packing industry to reassure the overseas market. Actually protecting anyone wasn't the goal.

      Are you familiar with Sugar? It cost twice as much to import it to the USA than any other place and this has been since the 1700's
      It's one reason were killing ourself with corn syrup. - came across that when it was mentioned now we can get Sugar from Cuba.

      We can't afford it.

      http://en.wikipedia.org/wiki/H... and I'm one of those that seek out Mexican Coca-Cola in ethnic groceries because they prefer the taste compared to Coca-Cola in the U.S. which is made with HFCS.

  6. roof rack and bungie cords: by circletimessquare · · Score: 2

    great, until you hit a pothole and kill the guy in the car behind you on the highway

    i don't know about regulating hauling, but i wouldn't mind seeing the police pull over and arrest some of the flimsy crap i've seen barely secured to trucks and SUVs going 70 in the highway

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    1. Re:roof rack and bungie cords: by circletimessquare · · Score: 2

      i agree, i don't care about regulating hauling, i just want to see law enforcement crack down on shoddy roof rack and bungie cord arrangements. it's not industrious, it's cheap and dangerous to the rest of us. i don't care if the person is hauling it themselves, they are haulers from craigslist, or whatever: pull them over, fine them, then make them pay to get a professional to pick up their crap on the side of the highway an deliver it, right there and then

      --
      intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    2. Re:roof rack and bungie cords: by h33t+l4x0r · · Score: 3, Funny

      Unless the driver has his arm out the window holding the mattress. Because then he's got it.

    3. Re:roof rack and bungie cords: by FranTaylor · · Score: 2

      people die due to the carelessness and irresponsibility of others all the time

      They call it "involuntary manslaughter" and the perpetrators can be imprisoned for life in some circumstances.

  7. Re: Hauling goods is serious business by l2718 · · Score: 2

    Yes, this is less convenient, but the loss of convenience is incurred by the customer, who made the voluntary choice to go with the unregistered unlicensed option. They always had the choice of hiring a licensed mover instead.

  8. Re: Hauling goods is serious business by ShanghaiBill · · Score: 4, Insightful

    but the loss of convenience is incurred by the customer, who made the voluntary choice to go with the unregistered unlicensed option.

    No, the loss of convenience is also incurred by the following car that is damaged by the junk falling out of the pickup.

    This is a very different situation from Uber, since there are no "medallions" or other market limiting restrictions. Just a reasonable demand for proof of insurance. Since Burro claims they already have the insurance, this is not an onerous demand in the least.

  9. Re:your friends obviously suck by PPH · · Score: 4, Funny

    A friend is someone who will help you move. A real friend is someone who will help you move a body.

    --
    Have gnu, will travel.
  10. Re:Hauling goods is serious business by hawguy · · Score: 2

    Devil's advocate:

    One reason they demand proof of commercial insurance is an obvious one. What happens if they decide to help move, and some glitch on their part strapping down a motorcycle causes it to fall over, then smack the sides of the truck, destroying the other stuff inside?

    With most trucking places, you file a claim, call it done. Without insurance, you have to go to court, and may not even get a chance at scoring damages.

    There are also commercial licenses in Texas for truck driving. Using a service that doesn't use CDLs may be cheaper... but it is against the law.

    The last time I moved, the insurance included with my move was 60 cents per pound - for any coverage beyond that, I had to purchase supplemental coverage. So if they drop your 50 pound $1000 TV, they'll pay you $30.

  11. Re:Statists Rejoice! by FranTaylor · · Score: 2

    forgetting to secure your load and killing innocent people, how civilized

  12. Re:It doesn't matter who they're going after by Xolotl · · Score: 2

    Putting an improperly secured table in the back of a pickup truck which may or may not be properly maintained with adequate brakes, may not have the load properly distributed, may be overloaded, and may not have a driver trained to deal with that, is dangerous. To the driver and, more importantly, to other road users. Now on ordinary person moving a friend's table will do that once a year, if that. Little aggregate risk. But someone doing it off-the-books commercially from the lot at Home Depot might make three or four such runs a day, every day. Much bigger aggregate risk, which is why there is different insurance for it and why there are safety, weight, size, loading and driver training regulations which are enforced by law enforcement (there is even a special unit that does it, alongside Highway Patrol).

  13. Re:burro means donkey by Culture20 · · Score: 2

    And garage, beef, mutton, RSVP, et al are French words (et al is Latin), except when they're so commonly used in English that they become English. Burro is one of those words, although a case can be made for calling it Spanglish, since it's only commonly used in the southwest.

    "The problem with defending the purity of the English language is that English is about as pure as a cribhouse whore. We don't just borrow words; on occasion, English has pursued other languages down alleyways to beat them unconscious and riffle their pockets for new vocabulary." - James Nicoll

  14. Re: Hauling goods is serious business by jythie · · Score: 2

    So because powerful companies manage corruption, we should just give up on regulating everything?