Uber and Lyft, two popular transportation network companies (TNCs), are close to becoming permanently legalized by the Portland City Council, revealed The Oregonian recently. Despite this, debate over the companies’ insurance coverage threatens to forestall approval.
During a 3-hour hearing November 5, city council members hounded the two TNCs on their reluctance to provide more insurance for their drivers in Portland. "Why is this issue so difficult for your companies?" Hales asked, according to the newspaper. "It seems to me a relatively modest burden financially given the scale of these enterprises."
Although the TNCs are required to provide $1 million in liability insurance once drivers have been connected with a fare, they only offer a small portion of that amount while drivers are waiting for a connection – a time during which drivers generally are not covered by their personal insurance policies.
The Oregonian reported that both TNCs expressed their disinclination to operate in a city where their drivers must carry $1 million in insurance, despite not ferrying a passenger. The companies said they do not operate in any cities that require such a steep level of coverage. "These limits are the ones that were agreed upon as reasonable and appropriate for the model," said Lyft public policy director Annabel Chang, who underlined that the issue had been raised and debated over in other cities that the company has operated in.
TNCs are required to provide $1 million in coverage as soon as they arrive at Portland International Airport, said Fritz. Chang replied that it is because drivers are waiting for potential ride connections.
The council did not reach a definitive decision. The issue will be raised at a later meeting, but no dates have been set.
