End of tenure remarks from Meera Joshi, the outgoing Chair of the New York City Taxi and Limousine Commission, at Crain’s New York Business Breakfast, January 8, 2019.
Modified for brevity and clarity
2019 is the year that the Taxi and Limousine Commission (“TLC”), a small agency, must implement big changes that will set new precedents in for-hire transportation in New York City and nationwide. After we created historic new regulations last year with the City Council, this year is about making these reality for passengers and drivers.
Before I get to how the TLC will make these changes, I want to take a moment for how we got here. Why is the TLC tasked with such significant and highly analytical policy making duties? Five years ago, we began the process of increasing transparency in the for-hire sector through the collection of trip records. Our focus and growth in this area has garnered us a well-deserved reputation for sophisticated data collection and analysis, and the ability to use this information to produce balanced policy.
For instance, last year we determined that 96% of about 80,000 app drivers make less than the equivalent of a minimum wage. And on December 4, we made history and became the first city in the world to enact pay protection for this large group of professional drivers — larger than the population of New Rochelle, New York, or Scranton, Pennsylvania. This regulation takes into account that drivers are independent contractors and are generally not paid by the hour but by the trip. It sets a minute and mile minimum; a trip pay standard. That minimum is raised if a company cannot keep a driver busy and utilize him or her effectively — this prevents a dilution of the raise from new drivers entering the pool.
Detailed trip information also tells us how few wheelchair accessible vehicles are available via an app such as Uber or Lyft, and allows us to enact flexible solutions that work for companies and passengers to remedy this problem. It empowers us to uphold safety and consumer protection standards for more than 200,000 TLC-licensed drivers and about 135,000 vehicles that make over a million trips a day. It tells us that today over 25% of trips are done as shared rides, and that the fastest growing passenger base is in the outer boroughs, where trips have grown by 170% since 2016, a new mobility for many New Yorkers.
This leads us to a roadmap of this coming year. As you know, I will be at the TLC for the next few months, so what I set forth today is what those that follow me will accomplish, and how the public can make sure they do.
App driver pay protections
Driver pay protections will go into effect on February 1st, and there will be two avenues for enforcement. We will do regular administrative data runs to ensure that drivers are not underpaid, and drivers can file complaints directly with our driver protection unit.
In addition to enforcement, the TLC will monitor and report regularly on metrics that include wait times, passenger fares, driver pay trends, and restitution. This will give the public a comprehensive picture of the effects of the new pay standard. And in the spring, the TLC will hold a hearing to get public feedback on the standard.
As a result of these protections, drivers will earn about $10,000 more per year.
Accessible Service
New York City is the first city to require all for-hire service companies to provide wheelchair accessible service. Our mandate is already making a difference. When I last spoke at Crain’s in 2016, there were about 60 accessible for-hire vehicles in a fleet of tens of thousands. Today there are over 300, and this number is growing. They are still much less than the over 2,600 accessible yellow taxis — an important lifeline for passengers, whether via street hail, our Accessible Dispatch program, or paratransit.
As part of the mandate, companies have to provide wait time data on all trips. The TLC will compare these times for requests for standard service. We will also receive complaint data, the cost of the trip, fulfillment and cancellation rates.
Starting this spring, the TLC will release monthly reports on how well companies are complying with the accessibility mandate. These reports will be available for public review on the City’s Open Data site, and our first comprehensive review will be released in the summer of 2019.
With the data at hand to make precise assessments, the TLC and the public will have full transparency into whether or not the industry is meeting the accessibility mandate.
Medallion Debt
The payment due at the beginning of each month is the bleak reality for many medallion owners. They have for decades been dedicated borrowers, many paying back more than owed every month. Lenders know that the original principal that was lent will not be recouped. By lowering the principal and restructuring loans to match real revenue streams, they will make a good business decision and make a tangible difference in the lives of medallion owners. It is the lives of medallion owners that is our paramount concern.
I want to highlight that there are financial institutions actively restructuring medallion loans now. Millions of dollars in loan forgiveness has been given by institutions who value the livelihood that owning a medallion still supports. I strongly encourage others to follow suit for immediate relief.
Passenger fares and congestion
With the Department of Transportation, the TLC is studying how best to regulate app-based services to reduce congestion. Based on the data the TLC collects, outside experts are able to assess the potential effects of various approaches, such as setting a utilization rate for midtown Manhattan or charging for time in the congestion zone. The hallmark of this work has to be that the approach selected is grounded in data, and is flexible so it can be modified for changing conditions. The technology, information and know-how exists, so it’s prudent to incorporate it all. Simultaneously, we must resist the temptation to enact blunt rules that make headlines for a day, but do nothing to change the day-to-day lives of New Yorkers trying to get from one place to another.
The TLC is also monitoring the effects of a cap on for-hire vehicles that went into effect in August 2018. The TLC reports trip volume by quarter, and the first report is now available online. Since the cap went into effect, the report illustrates a slight increase in trips in all areas — including the outer boroughs, the busiest parts of Manhattan, and the airports.
Looking back
What has changed since January 2016, when I last spoke at Crain’s?
The cap. When I last spoke at Crain’s Breakfast, the City was six months out from an unsuccessful attempt to cap FHVs in response to the marked rise of Uber and Lyft cars on the road. Now we are six months out from a successful one. People ask what has changed since then. It was a myriad of things. Here are a few of the important shifts from my perspective:
•More facts — In 2015, we knew a little bit about a subset of trips. We had six months of trip pick-up information from the top 15 for-hire companies. The insights from the data was troubling, and illustrated that, contrary to the public claims made by the companies, the overwhelming bulk of trips were occurring in the city’s busiest areas and impacting congestion.
But the absence at that time of other key data streams made arguments to the contrary easier to launch.
Here were some popular refrains from 2015 that were used argue against a limit on app cars:
-The rise of app services and congestion are not connected. Additional data and analysis has refuted that. By late 2017, transportation scholar Bruce Schaller concluded that at in mid-2017, 36% of app cars were driving empty in the Manhattan business district and excessively contributing to congestion.
-Outer borough service will be decimated, and passengers will have to wait intolerably long for a ride. The ability to track and monitor trip distribution tells us whether or not this speculation is founded, and the cap legislation gives us the ability to make changes if necessary.
-Compelling TV ads featured drivers sharing how a cap would negatively impact their ability to make a living. By the summer of 2018, a report by two economists commissioned by the TLC found that over the last three years without a cap, driver income has steadily decreased as a rapidly growing number of drivers competed for trips. Today, 96% of drivers make less than the equivalent of the minimum wage.
•Driver suicide tragedies.
The devastation on the lives of professional drivers cannot be understated. To date, at least eight confirmed licensees have committed suicide. No one can know the exact reasons for each individual case — there are likely many factors that will remain unknown. I do know that although the drivers came from different sectors of the industry, the tragedies had a common theme: economic pressure.
•Lawmakers’ resolve.
Clear insight into the industry growth and its effects, combined with tragic real-life events, rightly stiffened the political will to make a difference. At a town hall last year, Mayor de Blasio was the first to reintroduce the concept of a cap, and the rest is history. The result was smart legislation that addressed the core problems, and wisely delegated the complexities of detailed rule and decision making to the subject-matter experts, the TLC. This apolitical, data-driven approach to crafting local law was a fine example of both good government and good policy. It is an effort I am proud to have been a part of.
What else has changed since 2016?
Data. In January 2016, the TLC was debuting our release of over 52 million FHV trips on open data. In 2018 we released data on over 360 million trips. The for-hire data we collect and release now is much more detailed than it was three years ago. It includes:
· Date time and location of every drop off and pick up
· Vehicle and driver identifier for each trip
· For the app services, every trip’s route with 60 second pings
· The date and time every driver logs on and logs off the app
· How much a driver is paid for each trip
· How much a passenger pays for each trip
· Which trips are actually shared
· Which trips touch congestion zones like midtown Manhattan
· Which trips are provided for passengers enrolled in a paratransit program
· The time a passenger requested a car, and whether it was for a wheelchair accessible vehicle
· The time the vehicle arrives for pickup, and whether it was accessible.
· Fulfillment rates for requests for wheelchair accessible service
Vision Zero
I am proud to report that last year, the number of traffic fatalities involving TLC-licensed vehicles plunged 50%, even as the number of vehicles on the road increased. This was achieved through focused and increased driver education and enforcement Most of all, it was because of the tens of thousands of dedicated, professional drivers that safely transport a million people every day.
Technology
Since 2016, the TLC has worked to get state authorization to use GPS meters in taxis, giving taxis access to newer and cheaper meter technology. Additionally, we have authorized taxi apps to give customers the same pricing certainty that the apps in the FHV sector can, an upfront price. With this tool, they can advertise their service with a price tag on sites like Google Maps, similar to competitors.
Smarter regulation in the taxi sector
In 2016, I noted the financial impediment of the independent ownership restriction. Later that year, it was eliminated. Now fleets can own an independent medallion, and vice versa. The cost of transferring a medallion has also been dramatically lowered, from 5% to .5%, creating more market liquidity. In 2015, 131 medallions changed owners, and transfer taxes commonly ran about $50,000 per sale. In 2018, 976 medallions changed hands, and transfer tax was commonly between $800 and $1800.
Restrictions on leasing were also eliminated. Companies can now lease taxis to drivers through apps for a duration chosen by the driver, and use car sharing technology for drivers to find and unlock their taxi. This saves time for drivers who no longer have to travel to the garage. This technology also lets drivers work for as long or as short as possible, bringing the work flexibility drivers have found in the FHV apps to the taxi industry. New investors are here, and their interest in operations should be leaning towards these driver-friendly models.
Accessibility
Accessibility in taxis has been markedly augmented by our expansion of Accessible Dispatch from Manhattan pickups to citywide pickups — as well as a growing partnership with the MTA, which allows for 8000 Access a ride trips to be provided in green or yellow taxis every day.
Our work led to rules that mandated all for-hire companies, including Uber, Via and Lyft, to either have accessible cars in constant circulation, or be able to provide on-demand service within strict time limits. The app companies sued the City, and the litigation was settled. As a part of the settlement there are more stringent wait time requirements, as well as wait time data on all trips (accessible requests and non-accessible). Rulemaking tied to the settlement was finally passed a few months ago. It was a long time coming, but I am proud to say tremendous progress has been made.
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One thing hasn’t changed is the healthy vocal chords of the industry drivers, owners, and businesses. They are loud, and that’s a very good thing. No policy maker should work in a bubble, and here at the TLC we don’t — and could never. We want to hear everyone’s voice. Old and new industry stakeholders and advocacy groups make their views known and are available for honest and too often tragically real public debate. Our accessibility and driver pay mandates are perfect examples. These rules passed, but only after more than 18 hours of impassioned public testimony and nearly 300 speakers. I can’t say that it is always easy — I am more often than not the target for venting, even if I am not able to make the changes people want. But it is essential, and as a Commission we have never shied away from really receiving and incorporating feedback from those that we license and the people they serve. It is my hope that this truth does not change either.
