Latest twist in ongoing New York Taxi Workers Alliance case against TLC, stemming from reinstatement of EV exemption to TLC Plate Cap, sees NYTWA asking judge to rescind already issued (!) TLC Plates
This is a very good question and some different ways to answer it.
By broker we take it you mean leasing companies (those companies (or individuals) who rent vehicles + TLC Plates and/or TLC Plates-only where the driver owns vehicle).
- There will always be a need for some sort of rental / leasing market. Active drivers will get into accidents, need to repair their cars, are sideswiped overnight while parked etc. We've seen all these situations (& more) - we started out in the TLC leasing industry, as we've mentioned. Imagine a situation, especially with lockouts, where a driver's vehicle is in the shop for even 1 month. They might be put on the Uber waitlist if they can't get access to another TLC-plated car quicky, while their vehicle is being fixed.
- Some drivers leave the country for months at a time, so a rental market needs to exist for these drivers as well.
- *The above being said*, 100% we agree leasing company abuse can arise in a situation where you have a limited FHV supply dynamic - one way to address this is through lease caps (a leasing company cannot charge more than $X, this is one way they protected against taxi medallion garage abuse).
- We also agree if a TLC plate does not conduct a trip (and is not in storage) for 90+ days then already existing laws need to be enforced ("JW" TLC summons). First violation is a $1,000 fine we believe and second violation might result in TLC Plate revocation.
Some other thoughts below:
- Drivers can still buy a wheelchair accessible vehicle (WAV) to claim their own FHV License (TLC Plates) so this is a "free market" mechanism to keep a check on leasing companies
- Some drivers cannot get auto loans or can only access really, essentially "usury" rate auto loans (25%+ interest rates). Let's say you destroy TLC rental companies. What might happen is instead of TLC rental company the TLC *can* regulate, the driver is now subject (via a long term car loan agreement) to a "predatory" financial institution the TLC *cannot* really regulate
- Some drivers don't want to buy a vehicle and prefer the certainty of fixed lease payment and ability to return a vehicle on short notice. When we started our TLC leasing business (pre any TLC Plate Cap), we focused on Uber Black drivers. Some of these drivers had 700+ credit scores, could easily buy their own vehicles etc, but preferred to lease so they wouldn't have to worry about variable maintenance costs etc. Some TLC drivers prefer to lease vs. own a vehicle due to working capital considerations (i.e., it's hard for them to afford one-off $2,000 repair bills)
This UR locking is outrageous! We paid all the fees and insurance, yet we're stuck offline and drive around aimlessly. Are there any lawyers who can help? Is there a way to fight this with a lawsuit against the TLC? Perhaps there's a way to donate and support this cause.
Believe there is going to be a TLC meeting soon to address this. Have heard NYTWA, IDG, Uber, Lyft, TLC etc are in active discussions. Will keep the newsletter up to date with more details as they come out 👍
Why not to annul all the broker owned plates?
Brokers own thousands of plates and renting them to any Uber or Lyft driver. These brokers are responsible for the glut of drivers in the business.
TLC really need to annul every single plate owned by brokers or non-active driver and take the plate supply and demand in their hands.
This is a very good question and some different ways to answer it.
By broker we take it you mean leasing companies (those companies (or individuals) who rent vehicles + TLC Plates and/or TLC Plates-only where the driver owns vehicle).
- There will always be a need for some sort of rental / leasing market. Active drivers will get into accidents, need to repair their cars, are sideswiped overnight while parked etc. We've seen all these situations (& more) - we started out in the TLC leasing industry, as we've mentioned. Imagine a situation, especially with lockouts, where a driver's vehicle is in the shop for even 1 month. They might be put on the Uber waitlist if they can't get access to another TLC-plated car quicky, while their vehicle is being fixed.
- Some drivers leave the country for months at a time, so a rental market needs to exist for these drivers as well.
- *The above being said*, 100% we agree leasing company abuse can arise in a situation where you have a limited FHV supply dynamic - one way to address this is through lease caps (a leasing company cannot charge more than $X, this is one way they protected against taxi medallion garage abuse).
- We also agree if a TLC plate does not conduct a trip (and is not in storage) for 90+ days then already existing laws need to be enforced ("JW" TLC summons). First violation is a $1,000 fine we believe and second violation might result in TLC Plate revocation.
Some other thoughts below:
- Drivers can still buy a wheelchair accessible vehicle (WAV) to claim their own FHV License (TLC Plates) so this is a "free market" mechanism to keep a check on leasing companies
- Some drivers cannot get auto loans or can only access really, essentially "usury" rate auto loans (25%+ interest rates). Let's say you destroy TLC rental companies. What might happen is instead of TLC rental company the TLC *can* regulate, the driver is now subject (via a long term car loan agreement) to a "predatory" financial institution the TLC *cannot* really regulate
- Some drivers don't want to buy a vehicle and prefer the certainty of fixed lease payment and ability to return a vehicle on short notice. When we started our TLC leasing business (pre any TLC Plate Cap), we focused on Uber Black drivers. Some of these drivers had 700+ credit scores, could easily buy their own vehicles etc, but preferred to lease so they wouldn't have to worry about variable maintenance costs etc. Some TLC drivers prefer to lease vs. own a vehicle due to working capital considerations (i.e., it's hard for them to afford one-off $2,000 repair bills)
Just some thoughts.
This UR locking is outrageous! We paid all the fees and insurance, yet we're stuck offline and drive around aimlessly. Are there any lawyers who can help? Is there a way to fight this with a lawsuit against the TLC? Perhaps there's a way to donate and support this cause.
Believe there is going to be a TLC meeting soon to address this. Have heard NYTWA, IDG, Uber, Lyft, TLC etc are in active discussions. Will keep the newsletter up to date with more details as they come out 👍