June 29, 2017
Ride hailing becomes law in upstate New York
Starting on June 29, 2017, transportation network companies, such as Uber and Lyft, will be allowed to expand to upstate New York. Gov. Andrew M. Cuomo signed legislation to push up the effective date of the original ride-hailing law, passed in the New York state budget, so ride-hailing companies could begin operating in upstate New York 10 days before July 4.
Some things to know about ride hailing
- Despite the rush, ride hailing may not be available everywhere in New York immediately. Uber and Lyft will roll out their expansion strategies partially on demand.
- Local governments may choose to block ride-hailing services from picking up passengers within their borders. However, many upstate New York cities already have signaled support for the introduction of the services.
- Riders will be charged a 4 percent state “assessment fee” per trip, as well as a 2.5 percent surcharge, to cover workers’ compensation costs for drivers.
- New York state will place certain restrictions on ride-hailing drivers, including an age requirement of at least 19 years.
- Drivers also will be required to have a valid driver’s license and insurance.
- The New York State Department of Motor Vehicles has drafted regulations that apply to the ride-hailing industry, including criminal background checks for drivers and a review of their driving record.
- The law requires transportation network companies to maintain specific amounts of financial responsibility coverage for their drivers and provide notice to drivers if they need additional insurance coverage.
Want to learn more? Order PIANY’s On-Demand Webinar—Upstate NY Ride Hailing Becomes Law in State Budget. It will discuss in detail all of the regulations, requirements and restrictions mentioned above and answer all of the insurance questions surrounding ride hailing and transportation network companies. To order, click here.