Michael N. Conneran, Partner415-995-5042mconneran@hansonbridgett.com

TNC’s and Everything Else:The New Wave in (Public) Transportation

American Public Transportation Association Legal Affairs SeminarNew Orleans, LouisianaFebruary 27, 2015

TNC = Transportation Network Company

• Definition used by California PUC in regulating “ridesharing” services Lyft, Uber, etc…

• Online platform to connect riders to personal vehicles

Everything Else

• Broad range of transportation solutions• Some old, many new, many tech-related• Many debuting in SF Bay Area

Everything Else

• A complement?– A replacement?

• A competitor?–An improvement?

• A threat?–A blessing?

• A curse?

What Else is Out There?

• Shuttles• Car pooling• Company buses• Premium buses

Shuttles

• Last mile service, often sponsored by business/facility owner to tie facility to transit station/stop

• Traditional – hospital, university, school• Employer-paid or agency-subsidized

(Clean Air funds)• Newer model - Group/shared shuttle

operations– Developer/TMA funded

• TMA=Transportation Management Association

– Assessment-funded – Emery-Go-Round

• Municipal– Mountain View, CA – Electric Buses

Car Pooling• Traditional

– Government Site to Match Riders

– “Casual Car Pools” –Bay Bridge

• Tech-supported– Uberpool– Lyft Line– Sidecar Shared Rides

Car Pooling

• Example: Lyft Line (SF) competes with public transit viaits “Match MUNI” fare for shared carpools:“That isn’t to say we don’t love our friends at MUNI! MUNI and Lyft Line go hand in hand.”

-Lyft Line Web Site

Split fares violate law—SF DA George Gascon

The Economist: “Carpooling services could disrupt public transport systems in much the same way that Uber and Lyft are disrupting the taxi industry”

Company BusesGoogle Buses• SF to Silicon Valley

– Supports Silicon Valley employees who want to live in SF

– Takes burden off public transit/roadway system

– Use of transit bus stops for pick-up/drop-off raises concerns for MUNI

– Raises issues regarding gentrification, sparking protests in SF and challenge to program to share MUNI stops

Premium Buses: Luxury vehicles operate on routes similar to public transit• Bridj (Boston) www.bridj.com• Leap Transit (San Francisco)• (SF) “The commuter bus for the rest of us”• Blackline (Chicago) • Chariot (SF) “Your commute solved”

Premium Buses

• “Real time” data gathering to adjust routes/times on a virtual basis

Compare to traditional transit:• FTA-mandated notice/hearing process for route/fare

changes vs. “dynamic” pricing and routes• Title VI overlay vs. “cherry picking” popular routes• 80% federal participation in public transit vehicle

purchases vs. copious venture capital funding

Issues – Regulatory

• Vehicle Licensing (Commercial vs. Private Tags)• Insurance• Driver Training/Background/Licensing• Employee/Contractor Questions• Worker’s Compensation• Hours/Wages• Use of Streets/Congestion • Airport Entry Fees• Data Gathering/Sharing• Legality of Shared Rides/Different Destinations

Issues – Policy

• Use of Transit Stops/Terminal Facilities (w/o payment?)• Accessibility

– Paratransit obligations?• Cherry-picking

– Taking only more profitable routes?– If public transit routes lose money, is that a bad thing?– Impact on public’s willingness to fund transitThe Economist:“[b]y taking customers away from subways and buses, it threatens to drain public transit systems of much needed funding, which could drive up costs for those who rely on public services.”

Issues – Policy

Private sector attitude towards government:

Get outta our way!

Who regulates?

• State – PUC – (intercity routes only?)

• Cities/Counties – (general governmental powers, but maybe not transit operators)

• Transit Agencies – (limited legislative grant of authority, need to rely on cities/counties for enforcement)

A blessing or a curse?