An Innovative Governance Framework for the Future
The International Association of Transportation Regulators (“IATR”) has pioneered providing model regulations for the rapidly-evolving for-hire ground transportation sector. Taxis have been at the forefront of transportation regulation for more than a century, but the last decade has witnessed an influx of new players, namely app-based, on-demand transportation services. Providers of these apps are generally referred to by regulators as Transportation Network Companies (“TNCs”), private hire vehicles (“PHVs”), for-hire vehicles (“FHVs”), point-to-point transportation, or peer-to-peer networks. Whatever you call it, this technology has permanently altered the for-hire transportation regulatory landscape.
After more than a decade of operations in varying forms around the globe, it is clear that TNCs are a part of the for-hire transportation framework. In almost all of the U.S., TNCs have been operating under a regulatory framework designed for their unique operations. It is a “self regulation” model of sorts, where TNCs are required to follow the established regulations pertaining to insurance coverage, driver and vehicle qualifications and standards, and operating requirements.
In recent years, TNCs have forged partnerships with taxi operators around the world, promoting the model that the demand for ride sourcing and the supply of taxis can benefit both parties, while improving mobility options in cities. However, there is a long way to go on this new mobility marriage. In many markets, these new partnerships face regulatory challenges, and mutually-beneficial policy strategies can be difficult to navigate at the local level. Click here to read full report.