Transportation Network Companies: SFO Permitting, Enforcement & Challenges AGTA/AAAE Phoenix Conference September, 2014

 SFO Statistics (FY 13/14):  46.2M air passengers  2,500 ground transportation permittees, operating 11,700 vehicles on 1.5 miles of roadway  Average 120,000 passengers per day  Ground Transportation Management  Existing systems:  AVI – Transponders on commercial vehicles  BART Trains and AirTrain  Taxi Smart Cards  New comprehensive GTMS/TMS under development SFO - The Big Picture

What are TNC’s? A TNC is defined as an organization whether a corporation, partnership, sole proprietor, or other form, operating in California that provides prearranged transportation services for compensation using an online- enabled application (app) or platform to connects passengers with drivers using their personal vehicles. TNCs are not “ridesharing” services. They are for-profit businesses.

SFO Ground Access Modes (3,500 Responses)

Ground Access Survey Results

SFO TNC Permit Timeline March 8, 2013SFO Issues Cease & Desist Letters to Lyft, Sidecar, Tic-n-Go (Wingz)& InstantCab April 2, 2013 SFO issues a Cease & Desist letter to UberX Nov. 15, 2013 Meeting with TNCs (InstantCab, Lyft, Sidecar, Tickengo, Uber) to discuss preliminary permit requirements Dec. 2013–Mar. 2014Follow-up meetings with individual TNCs Apr. 7, 2014 Permit application (and reminder of unauthorized airport operations) sent to TNCs May 15, 2014Warning letters sent to TNCs May 16, 2014Permit application received from Wingz

 Putting Safety & Security First  Passengers / Drivers / Pedestrians  Easing and Controlling Congestion  Limited curb space is a problem  Transit First policy  Keeping Operators Accountable  Insurance requirements  Fair Play  Level playing field for operators  Consistent Enforcement  Compliance with Airport Rules & Regulations Our Performance Goals

 Identifying and Understanding the TNC Business Model  Meetings with TNCs to understand technology and operations  Potential for software-based solutions (e.g., vehicle tracking)  Different Companies have different operations – creating a general permit  Recognize Consumer Choices / Embrace Innovation  Consider Overall Impacts  Equity with other permit requirements  Need for data  Limited curb space and staging areas TNC Permit Development – Thinking Outside the Box

 Pilot Program  Data collection, evaluation of impacts  Currently, drop-off only  Insurance  $1M commercial liability insurance while on Airport property for TNC trip  Airport as additional insured  Identifying TNC Vehicles  Trade dress  Electronic waybill  Airport placard SFO TNC Permit Highlights

 Vehicle Tracking  Notification upon entry/exit from Airport property and upon ride completion  Required data: License plate number, date/time, GPS location, driver validation  Fees and Charges  $1K deposit, subject to adjustment  Trip fee equal to limo rate  Trips self-reported and payment remitted monthly  Auditing  Operational records/data subject to audit by City SFO TNC Permit Highlights (cont’d.)

 Regulations in flux  CA Public Utilities Commission  CA Legislature  Illegal operations and regulatory violations  Enforcement resources  Lack of data  Building trust and communication Challenges

 When a driver has accepted a request or picked up a passenger, AB 2293 would require $1 million worth of insurance.  When the driver is cruising with app on looking for a fare, AB 2293 requires $200,000 worth of insurance.  If the Governor signs the bill into law, the requirement would be effective July 1, 2015, and the CPUC and Dept. of Insurance would need to assess whether the coverage requirements are appropriate and report back to the legislature by Dec 31, Assembly Bill Susan Bonilla

 DMV Pull Notice Program  DOJ – Background Check  A driver shall be denied employment or have his or her contract voided if he or she is required by any law to register as a sex offender or has been convicted of any felony, within a seven-year period from the date of his or her application, involving any type of sexual offense; the manufacture, possession for sale, transportation, or distribution of narcotics, controlled substances, or addictive or dangerous drugs; force, violence, threat, or intimidation against persons; kidnapping; forgery, fraud, larceny, extortion, burglary, robbery, or theft; credit card fraud; possession of a firearm or dangerous weapon; resisting or obstructing a peace officer, public officer, or emergency medical technician; or use of another vehicle for hire in the commission of a felony. Equivalent out-of-state violations shall be considered. Assembly Bill Adrin Nazarian

TNC Enforcement :Violations of CPUC Rules Violation Percent of contacts Unauthorized operations at airport 100% Not displaying consistent trade dress 80% ▪Improperly displayed (8%) ▪None (72%) TNC app not displaying required information 50% ▪No driver name/picture (42%) ▪No vehicle picture/license plate (46%) Use of vehicle not owned by driver 8% No proof of insurance 3% No valid California driver license 1%(2 drivers)

QUESTIONS?