IN FOCUS
by Matthew W. Daus, Esq. President, International Association of Transportation Regulators Distinguished Lecturer, University Transportation Research Center, Region 2 Contact: mdaus@windelsmarx.com 156 West 56th Street, New York, NY 10019 T. 212.237.1106 • F. 212.262.1215

"The Expanding Transportation Network Company (TNC) Equity Gap & Social Irresponsibility: Adverse Effects on Passengers with Disabilities, Under served Communities, the Environment & the On-Demand Workforce"

I am pleased to announce that we have recently completed a comprehensive report that is scheduled to be published in a book. The book is published by the New York University School of Law's Labor and Employment Law Center. It is edited and facilitated by the Cornell University School of Industrial and Labor Relations, entitled: "The Expanding Transportation Network Company (TNC) Equity Gap & Social Irresponsibility: Adverse Effects on the Disabled, Under served Communities, the Environment & the On-Demand Workforce." ("The TNC Equity Gap Report").

This report was both co-authored and peer reviewed by experts in the fields of labor and employment law, sustainability, economics, disability and civil rights, including a national and international group of professors, former high level government officials, and disability advocacy groups. In addition to the playing field being skewed in favor of Transportation Network Companies ("TNCs") to the detriment of the traditional taxicab and for-hire vehicle industry, an alarming result from the proliferation of such TNCs is the undeniable adverse impact on people within a community. This includes people with disabilities, under served communities, the environment, social responsibility, and the labor force of the so-called "on-demand sharing economy".

This comprehensive report¹ provides stunning revelations concerning the disturbing underbelly of the TNC business model. It provides recommendations for policy making addressing the concerns raised by the authors and peer reviewers. This report demonstrates that the TNC template is nothing more than a privileged access model that operates to the detriment of those in most need of their services.

As is fully explained in the report, with concrete data and evidence, the following are a list of the unfortunate results and social consequences that continue to result from the continued proliferation and existence of TNCs:

Wheelchair Accessibility Not a TNC Priority

• The proliferation of TNCs has greatly slowed, if not halted. Progress is being made to convert a large portion of taxicabs in New York City to wheelchair-accessible vehicles;
• TNCs continue to argue that the Americans with Disabilities Act (ADA), a law designed to provide inclusiveness for all, does not apply to their operations in any way;
• TNCs do not, except in rare instances, have the capability to accommodate electric wheelchairs and scooters; and
• TNCs are not held to the same accessibility mandates as the traditional For Hire Vehicle industry;

• Communities that may desire to utilize a TNC service, but currently have limited or no access, include low income communities and minority communities, both of which may be "redlined" or disincentivized from serving due to the effects of surge pricing;
• Rural communities, where low population density and a host of other factors disincentivize drivers from expanding service;
• Unbanked and under banked communities, which have little or no access to the financial institutions required to pay for TNCs; and
• Individuals without smartphone access who do not possess the technology expertise necessary to request TNC service.

• CTNC proliferation threatens cities' efforts to reduce the number of Personal Motor Vehicles on the road, setting back decades of transportation planning and policy aimed at mitigating congestion and pollution, and encouraging shared mobility and mobility management;
• Unregulated TNC growth could cause congestion and harmful environmental impacts through the proliferation of nitrogen oxides, fine particulate matter, volatile organic compounds, carbon monoxide, sulphur dioxide, greenhouse gases and air toxics;
• Said congestion has resulted in massive losses to local businesses and government taxpayers impacted by it, with additional time spent on road repair, while labor force activity and business or government operations are negatively impacted by traffic jams and gridlock;
• Congestion is further exacerbated by TNC's usage of so called "surge pricing". This is due to the incentive for all or most part time on demand economy TNC vehicle drivers being fiscally rewarded by working already congested areas during peak business period (a/k/a rush hour in central business districts of urban environments); and
• Urban areas are projected to continue growing at a rapid rate, and, as a result, policy makers must take into consideration how they will allow TNCs to continue to grow to avoid a "collision course" with environmental and sustainability policy.

• TNCs market themselves as socially responsible businesses when, in reality, they have built a highly sophisticated crafted web of tax avoidance depriving cities and nations out of hundreds of millions in tax revenue;
• Local taxicab and for-hire vehicle transportation providers are obliged to pay their local taxes which increases their cost burden and forces them to charge higher fares than the TNCs are able to offer. This places the traditional industry at a competitive disadvantage for fulfilling its civic duty;²
• Without the advantage of a TNC's tax structure, local taxicab and for-hire vehicle providers are forced out of business, further decreasing the tax revenue to the government; and
• TNCs have led to the proliferation of ever smaller jobs ("gigs" and "micro-gigs") performed by independent contractors, freelancers, temps and part timers collectively termed as "the disposable workforce". These are workers, who must go out of pocket for vehicle loan payments, gasoline, vehicle maintenance, car insurance and health insurance. They are faced with no safety net such as unemployment or injured workers' compensation, paid sick or vacation leave. They operate in a reality wherein they can be disconnected from the TNC app platform at any time without any recourse, thus leaving them "holding the financial bag".

THE CONTENTS OF THIS REPORT HAVE BEEN REVIEWED AND APPROVED BY THE FOLLOWING INDEPENDENT PANEL OF EXPERTS

1 Hon. Patricia Gatling, the longest serving Commissioner/Chair of the NYC Commission on Human Rights, former Deputy Secretary to the NY State Governor for Civil Rights and former Kings County (Brooklyn, NY) First Assistant District Attorney;

2 Professor Jonathan Peters, an academic researcher with Accounting and Finance at the City University of New York/College of Staten Island, is an economist whose work has focused on transportation economics, equity and congestion management/performance metrics; and

3 Representatives of and officials from Keroul, an international tourism and cultural organization based in Canada which focuses on advancing the rights of people with restricted physical mobility, including:
A. Keroul Board Chair Isabelle Ducharme, whose background is in accessible business and tourism. Since 1988 he has had personal experience with mobility restrictions caused by an automobile related spinal injury. He has been an advocate for disability rights for decades;
B. Michel Trudel, Keroul Secretary of the Committee on Universal Accessibility of the Montreal Taxi Industry, the former taxicab regulator from Montreal, and former IATR President; and
C. Maureen Koetz, the former Assistant/Principal Deputy Assistant Secretary for the Environment, Safety and Occupational Health to the United States Air Force and former Congressional Counsel to the U.S. Senate Energy Committee. She is an expert in sustainability and natural capital and infrastructure management with extensive public and private experience in the field.

The full TNC Equity Gap Report can be accessed by contacting Professor Matthew W. Daus, Esq. at mdaus@windelsmarx.com and will be showcased at the annual conference for the International Association of Transportation Regulators (IATR) in San Francisco (September 22-25, 2016). The conference program can be viewed, and individuals and companies can register and/or sponsor by visiting www.iatr.global.