We’re Live, Right Now, Interviewing Juan Matute About Lyft, Sidecar, Uber and Los Angeles

Right now at SoCal Streetstube, I’m interviewing Juan Matute, UCLA Lewis Center Associate Director about the role that the city plays regulating Transportation Network Companies and how these companies help or hurt mobility overall.

We’re broadcasting live at SoCal Streetstube. If you have a question for Juan, leave it in the comments section. As always, we’ll publish the broadcast as soon as it is completed.

  • Dave Sutton

    Ridesharing taxis put both drivers and passengers at risk. Drivers won’t be covered by their insurance while working commercially. And no ridesharing taxi company has ever publicly revealed the actual terms of its insurance policies.

  • 2UrbanGirls

    Lyft setup an entire campaign to fool the CPUC into granting them authority to exist. They ARE a taxi and KNOW they are a TAXI. As evidenced by their promo campaign implemented by Markerly

    http://www.markerly.com/campaign/apply/lyft_atl

    And what happens if the driver crashes with you in the car?

    http://www.theatlanticcities.com/commute/2013/09/real-future-ride-sharing-may-all-come-down-insurance/6832/

  • 2UrbanGirls

    Thank you for sharing that Dave! There is a reason why taxis are required to have so many permits and insurance. Ride share operators should have the same.

    Question is, will this impact “traditional” carpools?

  • calwatch

    I don’t think so. There’s a clear difference between not for profit carpooling and TNC type ridesharing. There’s also tremendous tax evasion potential with TNCs. I have to ask – are Lyft, Sidecar, and UberX issuing 1099’s for all their independent contractors? Are the independent contractors properly paying self employment tax? I know it is possible to make more than $600 a year on Lyft, Sidecar, and UberX, and they need to be 1099’ed.

  • 2UrbanGirls

    Good question. I am sure they have to 1099 just like those who rent their personal cars out for hire.

    IRS rules only allow individuals to make the amount to cover operation of the vehicle, anything beyond that makes the car “commercial” and could potentially have them removed from their insurance.

    MUST read the fine print of legislation. That ONE word could make all the difference in the world.

  • calwatch

    Uber and Lyft use the 1099-K threshold of $20,000 AND 200 transactions – http://www.irs.gov/pub/irs-pdf/i1099k.pdf – which is absurd in my opinion. Basically, if you are making less than $20,000, you don’t get a 1099 and there is no reporting. They need to follow the normal 1099 rules of a $600 threshold.

  • 2UrbanGirls

    Wasn’t Sunil Paul behind this outrageous legislation? He is also the owner of Sidecar. How does that caveat benefit the company? It definitely keeps the owner from reporting income received/earned.

  • Jim Frey

    Bad news on the insurance front.
    Amica is a great insurance company and I don’t want to risk not being renewed. I’m OUT as a #Lyft driver.

    Here is the note I received today from Amica customer service:

    Dear Mr. Frey,

    This will confirm our recent conversation. It is our understanding your request pertains to transporting individuals for a donation. We also understand the transport will involve your personal vehicle(s) currently insured under policy number xxxxxxx.

    After reviewing your request, we are unable to offer coverage for that activity. Amica is a personal insurance carrier which does not offer coverage for livery services.

    Should this activity take place this could impact the renewal of your policy. We strongly recommend you seek a local agent that specializes in livery services.

    If you have any further questions, please contact our office at 800-592-6422. We are available 24/7 to assist you.

  • davistrain

    I’m not old enought to remember the “jitney buses” of a hundred years ago, but they are mentioned in several electric railway history books. People who had a car and wanted to make a little extra money would drive along a streetcar line and offer rides to folks waiting for a trolley, charging a nickel, which for reasons unknown, was called a “jitney” in those days. This activity became widespread in some areas, causing concern among the transit companies who saw their revenue diminishing. They had to pay franchise fees, taxes and had to maintain their railway lines. They were subject to all sorts of regulations, while the “jitney” operators just had to buy gasoline, and occasionally add oil or repair a flat tire. The traction companies soon started lobbying the cities and states to pass laws requiring licensing and insurance of “jitneys” and other measures that took the profit out of informal transit service. So here we are, 100 years later, only now it’s the taxicab interests whose ox is being gored.

  • Silverado Canyon Kid

    They do, however the 1099 rule only applies to those who are paid $600 for bonuses and mentoring. Anything generated by DONATIONS (up to $20k) does not yield a 1099.

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