In order to level what they deem to be an unfair field of competition against the likes of Uber and Lyft, Flywheel Taxi of San Francisco is suing California regulators, the Chronicle and Examiner report.
While taxis are regulated by cities and counties, which have stricter rules, Uber, Lyft, et al. are regulated more loosely at the state level. Specifically, the California Public Utilities Commission began regulating the new breed of ride-hailing companies — or transportation network companies (TNCs) — two years ago.
But Flywheel contends that the PUC should vacate its post as their regulator in favor of city and county authorities. No monetary damages are sought, just Flywheel's attorney feels.
“We are seeking equal protection,” said Hansu Kim, Flywheel's CEO. “When we compete against Uber, we want them to play by the same set of rules.”
Among the disparities cited by the Flywheel suit are several benefits Uber and Lyft need not confer. Those include worker's comp coverage for all drivers, maintaining fleets that are 90 percent fuel-efficient, limiting how many for-hire cars are on the street, and providing accessible vehicles for people with disabilities. Further, taxi rivers at the city level must have commercial licenses, subjecting them to more thorough background checks.
Flywheel Taxi is a rebranding of San Francisco's oldest cab company, DeSoto. The move to repaint its cars red and change names highlighted the fact that the companies taxis may be summoned, like Uber and Lyft cars, via an app.
The SFMTA appears to share Flywheel's concerns. “At this time, the lawsuit addresses both an industry and issues germane to the SFMTA so we are reviewing this newly filed lawsuit,” said an SFMTA spokesperson. “Moreover, the SFMTA has longstanding concerns about the fragmented nature of the regulatory frameworks for TNCs and taxis.”
