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