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Are the Existing Rideshare Service Restrictions in Chicago Enough?

Rideshare companies like Uber and Lyft tool Chicago by surprise, creating an avalanche of issues within the city’s transportation system. As these rideshare services continue to take a huge percentage of the city’s commuters away from the cab companies, it was not surprising at all when cabbies decided to take action by filing suits against the city itself.

In response, the city decided to show how important the taxi industry is by coming up with ordinances not only to give cab companies a fair share of the market but to somehow regulate how rideshare services operate. Although you can hear the rideshare companies complain about the ordinance, they are considerably better off with it as compared to their probable state in case the original ordinance, which was drawn by Mayor Rahm Emanuel, was approved. Chicago’s rideshare ordinance is also relatively more lenient as compared to the state bill.

Under the Chicago ordinance, drivers cannot go beyond an average of 20 hours per week which is definitely better that the 18-hour limit that the state has placed. Drivers who want to go beyond the 20-hour cap may also do so, provided that they can find another rideshare driver who can help offset the hours by logging in less hours for the same week.

In terms of issues on passenger safety and security, rideshare services are also required to go through strict driver background checks and vehicle inspections. They are also required to have insurance coverage. This is one aspect that cab companies have always seen as their edge against rideshare services, as there was a time when virtually anybody can become a rideshare driver. This puts the passenger at risk considering that there is no assurance at all about the driver’s capacity to drive other people around.

Of course, given the fact that rideshare services would find this city ordinance to be better than the state bill, the mayor is still receiving a lot of pressure from these services. This is mainly due to the fact that the ordinance is not at all about safety and security. Instead, rideshare services sees it as a way for the city to limit the amount of competition that cab drivers are getting. After all, the 20-hour limit does not prove anything. There is no assurance that the driver would do a better job if they only drove for 20 hours or less.

Because of this, Uber has been dangling the offer of more jobs in front of the city. Interestingly, the rideshare service is not looking for any tax credits for this. They simply want the city council to cease from standing in their way as they promise to bring over 400 new jobs in the city.

With this ordinance combined with the Taxi Driver Fairness Reforms package that was passed in December last year, it is not surprising that rideshare services are calling foul. However, it should also be understood that cab companies have always been part of the city’s transportation system, and it is also unfair for them to be suffering from competition that offers the same kind of service as they do, but without the pressures and restrictions that they have to follow.