Transportation Network Companies:
SFO Permitting, Enforcement & Challenges
AGTA/AAAE Phoenix Conference
September, 2014
SFO - The Big Picture

SFO Statistics (FY 13/14):
 46.2M air passengers
 2,500 ground transportation permittees, operating 11,700 vehicles on 1.5
miles of roadway
 Average 120,000 passengers per day

Ground Transportation Management
 Existing systems:
 AVI – Transponders on commercial vehicles
 BART Trains and AirTrain
 Taxi Smart Cards
 New comprehensive GTMS/TMS under development
What are TNC’s?
A TNC is defined as an organization whether a corporation, partnership,
sole proprietor, or other form, operating in California that provides
prearranged transportation services for compensation using an onlineenabled application (app) or platform to connects passengers with
drivers using their personal vehicles. TNCs are not “ridesharing”
services. They are for-profit businesses.
SFO Ground Access Modes (3,500 Responses)
Ground Access Survey Results
BREAKDOWN OF TNC ACCESS
154 VALID RESPONSES
(MAY-JUNE 2014)
WINGZ
2%
DON'T
KNOW/REFUS
ED
2%
LYFT
14%
UBER-X
44%
UBER
38%
HOW DID YOU TYPICALLY GET TO THE
AIRPORT PRIOR TO THESE SERVICES?
(E.G. UBER, LYFT, SIDECAR ETC.)
143 VALID RESPONSES
(MAY-JUNE 2014)
RENTAL CAR OTHER
4%
4%
SHARED RIDE
VAN
6%
BART
13%
PRIVATE
VEHICLE
21%
TAXI
52%
SFO TNC Permit Timeline
March 8, 2013
SFO Issues Cease & Desist Letters to Lyft, Sidecar,
Tic-n-Go (Wingz)& InstantCab
April 2, 2013
SFO issues a Cease & Desist letter to UberX
Nov. 15, 2013
Meeting with TNCs (InstantCab, Lyft, Sidecar, Tickengo,
Uber) to discuss preliminary permit requirements
Dec. 2013–Mar. 2014
Follow-up meetings with individual TNCs
Apr. 7, 2014
Permit application (and reminder of unauthorized airport
operations) sent to TNCs
May 15, 2014
Warning letters sent to TNCs
May 16, 2014
Permit application received from Wingz
Our Performance Goals





Putting Safety & Security First
 Passengers / Drivers / Pedestrians
Easing and Controlling Congestion
 Limited curb space is a problem
 Transit First policy
Keeping Operators Accountable
 Insurance requirements
Fair Play
 Level playing field for operators
Consistent Enforcement
 Compliance with Airport Rules & Regulations
TNC Permit Development – Thinking Outside the Box

Identifying and Understanding the TNC Business Model
 Meetings with TNCs to understand technology and operations
 Potential for software-based solutions (e.g., vehicle tracking)
 Different Companies have different operations – creating a general permit
 Recognize Consumer Choices / Embrace Innovation

Consider Overall Impacts
 Equity with other permit requirements
 Need for data
 Limited curb space and staging areas
SFO TNC Permit Highlights

Pilot Program
 Data collection, evaluation of impacts
 Currently, drop-off only

Insurance
 $1M commercial liability insurance while on Airport property for TNC trip
 Airport as additional insured

Identifying TNC Vehicles
 Trade dress
 Electronic waybill
 Airport placard
SFO TNC Permit Highlights (cont’d.)

Vehicle Tracking
 Notification upon entry/exit from Airport property and upon ride completion
 Required data: License plate number, date/time, GPS location, driver
validation

Fees and Charges
 $1K deposit, subject to adjustment
 Trip fee equal to limo rate
 Trips self-reported and payment remitted monthly

Auditing
 Operational records/data subject to audit by City
Challenges





Regulations in flux
 CA Public Utilities Commission
 CA Legislature
Illegal operations and regulatory violations
Enforcement resources
Lack of data
Building trust and communication
Assembly Bill 2293 - Susan Bonilla

When a driver has accepted a request or picked up a passenger, AB 2293
would require $1 million worth of insurance.

When the driver is cruising with app on looking for a fare, AB 2293 requires
$200,000 worth of insurance.

If the Governor signs the bill into law, the requirement would be effective July
1, 2015, and the CPUC and Dept. of Insurance would need to assess whether
the coverage requirements are appropriate and report back to the legislature
by Dec 31, 2017.
Assembly Bill 612 - Adrin Nazarian



DMV Pull Notice Program
DOJ – Background Check
A driver shall be denied employment or have his or her contract
voided if he or she is required by any law to register as a sex
offender or has been convicted of any felony, within a seven-year
period from the date of his or her application, involving any type of
sexual offense; the manufacture, possession for sale, transportation,
or distribution of narcotics, controlled substances, or addictive or
dangerous drugs; force, violence, threat, or intimidation against
persons; kidnapping; forgery, fraud, larceny, extortion, burglary,
robbery, or theft; credit card fraud; possession of a firearm or
dangerous weapon; resisting or obstructing a peace officer, public
officer, or emergency medical technician; or use of another vehicle
for hire in the commission of a felony. Equivalent out-of-state
violations shall be considered.
TNC Enforcement :Violations of CPUC Rules
Violation
Unauthorized operations at airport
Not displaying consistent trade dress
▪
Improperly displayed (8%)
▪
None (72%)
TNC app not displaying required information
▪
No driver name/picture (42%)
▪
No vehicle picture/license plate (46%)
Percent of contacts
100%
80%
50%
Use of vehicle not owned by driver
8%
No proof of insurance
3%
No valid California driver license
1% (2 drivers)
QUESTIONS?