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📺 NYC In-Car FHV Ads Approved By City Council
City Council approves FHV in-vehicle ads, despite TLC opposition. Drivers can install ad tablets, with the right to at least 25% ad revenue share. Tablets may increase passenger tips as well
All TLC-licensed drivers and fleets will be able to display electronic advertising tablets in their vehicles, thanks to NYC Council Member Amanda Farías and the City Council’s Committee on Transportation and Infrastructure. The new bill passed a full City Council vote 47-0 and heads to Mayor Eric Adams for final approval.
Driver advocates from the Independent Drivers Guild (IDG) were in front of City Hall on Tuesday with Council Member Farías, celebrating the passage of a bill that allows in-vehicle advertising in all NYC for-hire vehicles (a/k/a FHVs).
“This bill would permit for-hire vehicles to display digital advertising on an approved electronic tablet attached to the interior of the vehicle. The approved tablet would be capable of being turned on and off, muted, or having its volume adjusted by the passenger in the vehicle. No driver would be required to have a tablet in their vehicle or pay for the installation of a tablet in the vehicle they drive. It would also be unlawful for any service regulated by TLC to take negative action against any driver for choosing not to have an approved tablet in their car. Any driver of a for-hire vehicle with an approved tablet in their vehicle would receive 25 percent of the revenue generated by such tablet in their vehicle. TLC would license the persons who provide or supply the approved tablets.”
- Int. 1139-2023, Sponsored by Amanda Farías, Passed by NYC Council Committee on Transportation and Infrastructure
25% Ad Revenue Share? Increased Tips?
While some might complain the 25% ad revenue share is low, we think that figure is likely subject to negotiation and helpfully sets a minimum % revenue share “floor”, that drivers must be paid. Drivers are not required to install ad tablets and passengers can also easily mute or turn off the tablet. We also think Council Member Farías point about the potential positive impact on drivers getting increased tips is noteworthy as well.
“It still allows customers to mute, turn off the tablet — along with play games, learn about who is giving them their ride and see parts of the city on their screen,” Farías said.
The bill would give drivers 25% of the proceeds from the advertising revenue. And it may even improve their tips.
“We know that when clients are presented with a visible reminder to tip the drivers on an in-car screen, drivers have seen a 13% increase in tips received,” Farías said.
- Spectrum News NY1
TLC Opposition?
A few months ago, we covered TLC’s industrywide email warning drivers against using T-Mobile-owned Octopus Interactive advertising tablets in their vehicles. Shortly after that warning, we covered official TLC testimony (see below) reaffirming the regulator’s opposition to allowing in-vehicle advertising in for-hire vehicles.
The TLC representative used hypothetical examples in their testimony related to not seeing evidence that drivers would stand to financially benefit from in-car advertising tablets (i.e., most money would go to fleets, bases and corporate entities).
However, we found TLC’s testimony confusing, especially when so many TLC-licensed drivers and industry participants were clearly, publicly and privately, indicating their support for in-vehicle advertising. One also has to remember that ~70% of NYC’s TLC-plated fleet is driver-controlled (TLC Plate is under driver’s name). Furthermore, a driver is NOT required to install a tablet in their vehicle and the bill’s 25% driver ad revenue share requirement, should address many of TLC’s concerns.
We also do appreciate the history of the infamous and widely hated yellow cab ‘Taxi TV’, but we think the lack of a solid plastic partition with an embedded screen will make the in-vehicle tablet experience more pleasant for passengers. Time will tell.
Mixed Group of Supporters
In her public remarks, surrounded by members of IDG, Council Member Farías indicated that passing legislation that allows in-vehicle advertising in all NYC for-hire vehicles, would also put to rest any question about TLC’s ability to disallow in-vehicle ads. However, the legislation does state the TLC would still be responsible for officially licensing approved tablet providers.
“Some of you maybe asking, why did I introduce this bill? Why does the City Council decide if our drivers get to have in-car advertising or not? The New York City Taxi & Limousine Commission regulates interior and exterior vehicle advertising…over the last five years, drivers have been subject to the slow, bureaucratic process…what makes today so important, is that drivers will no longer be subject to TLC policy changes and their opportunity for advertising will be cemented into law, for years to come.”
- NYC Council Member Amanda Farías (District 18)
Farías’ press briefing also included statements from IDG leaders and members (Brendan Sexton, Pedro Acosta), a Lyft representative (Larry Gallegos) and Jeremy Moskowitz, an executive with Voyager Global Mobility (VGM), owner of Buggy & Fast Track Mobility (two large TLC rental companies). The VGM executive interestingly made a public remark, dismissing the notion that his company was involved in “predatory” leasing, a clear reference to TLC Chair Do’s constant, public attacks on NYC for-hire leasing fleets.
“On behalf of Voyager with our two New York flagship brands, Buggy and Fast Track, we are the largest TLC rental provider in the City. Rental, not predatory lease…on behalf of our past customers, our current 4,300 customers, our future customers, we want to say thank you for listening…this puts more money [in drivers] pockets.”
- Jeremy Moskowitz, executive vice president with Voyager Global Mobility (VGM), owner of Buggy & Fast Track Mobility (large TLC rental companies)
The passage of NYC FHV in-vehicle advertising seems to be the result of an unusual group of parties working together (driver advocates from IDG, Lyft, Uber, leasing companies, NYTWA, City Council Members, etc.). It serves as a positive example of different parties in the TLC industry working together to achieve a mutually beneficial legislative outcome (‘win-win’).
We’re not sure when the new legislation becomes officially active, but will keep our readers up to date. We would assume companies like Uber, Lyft, Octopus Interactive and Vugo to start actively marketing to TLC-licensed drivers and fleets as well.
As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.
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