What started out as touchy-feely ride sharing services have long since morphed into serious business, with many Lyft and Uber drivers considering it their primary job. As such, traditional taxi companies think they should be subject to same regulatory requirements as taxi companies.
In Florida, things are getting contentious indeed, with cities and counties stepping in to regulate what the state so far has shied away from. The requirement for commercial insurance is, for many, the crux of the issue. Lawsuits have been filed and on top of that, there are a myriad of state agencies that each regulate some part of the ride for hire industry, and they have issued differing opinions as to whether Uber and other ride sharing companies in fact have met the state’s insurance requirements.
All taxi companies in Florida re required to carry commercial insurance, issued by FIGA member companies.
According to Todd Richardson, who represents the Florida Taxicab Association, Uber does not meet the requirement.
“Uber’s insurance company is considered ‘an alien offshore lines carrier’ and does not meet the requirements of Florida law,” Richardson said. “Therefore, they are breaking the law that all other ride for hire companies adhere to. There are also large gaps in their insurance coverage that expose the public to serious risk.”
Richardson said Uber has insurance that covers Uber drivers and passengers when fares are booked through the Uber app, but that many Uber drivers also do business on the side where a customer they meet through the app then books his or her next ride by calling the driver directly. “Since the second trip was verbal and not through the app, there is no insurance coverage in the event of an accident,” he wrote in an email.
Others point out, though, that with tens of millions of Uber rides given in Florida to date, no one can point to a case of the company or its insurers not paying a claim.
“I would not take a passenger off the books,” said James Johnson, an Uber driver from out of state, “and I don’t know anyone who would. If Uber found out, we would lose our jobs. The risk is just too large to do that,” he said.
Meanwhile, some municipalities have banned Uber while waiting for the state to sort things out, which even Governor Rick Scott has agreed needs to happen. Whether and how soon the state will act is anyone’s guess.
Uber did not return a phone call or an email seeking comment.
