It’s Time to Rethink Ridesharing at Mineta
San Jose has been forward thinking on home sharing. The city council should apply those same principals at the airport.
By Kish Rajan
LAX. SFO. John Wayne. San Diego.
This is a list of the major airports in California that have embraced competition and innovation by allowing rideshare pickups on their property. Conspicuously absent from the list is San Jose’s Norman Y. Mineta International Airport.
Earlier this year, the San Jose City Council voted to approve a pilot program allowing rideshare companies like Lyft, Sidecar and Uber to pick up customers at Mineta. The City Council hailed the vote as pro-innovation despite evidence to the contrary.
What evidence?
Not a single rideshare company chose to participate.
Today, a City Council committee hearing will be held to review the pilot program. This hearing is unlikely to include praise for the program, but does provide an opportunity for the City Council to rethink its decision and perhaps will pave the way for a U-turn.
San Jose is the gateway to Silicon Valley and as such should be the shining example of a municipality willing to embrace innovation. Unfortunately, the complete lack of participation in the pilot program tarnishes the airport’s image in comparison to others in the state offering world class services.
New business models require policymakers to put in place smart regulations in order to protect consumers without tipping the scales on behalf of incumbent industries. There can be no compromise on public safety whatsoever, and both the city and rideshare industry are aligned on this matter. While regulations intended to bolster public safety are essential, new rules and regulations must be properly balanced to serve the public interest while also encouraging new businesses to thrive. If any region understands the benefits of a competitive marketplace fueled by technology and innovation, it’s Silicon Valley. But the City Council’s chosen program shows a complete lack of understanding of the foundation that built today’s Valley.
The challenge can be distilled to one issue: background checks. The City Council believes that fingerprint background checks are the gold standard because they can ensure a potential driver’s true identity. The rideshare companies argue that their methods heighten public safety by combining in-person review of court records along with real-time driver rating systems and the ability for riders to share real-time trip information with family and friends. The reality is that no background check process is guaranteed to be perfect, but if we simply rely upon old methods without embracing new tools to make this industry even safer, we’ll continue standing still, which is a detriment to consumers and innovation.
The San Jose City Council has shown that it can be forward thinking when it comes to the sharing economy. The city recently collaborated with Airbnb to make short-term rentals legal while imposing a 10 percent tax. This compromise allows San Jose to meet its budgetary needs while unleashing a new business model that will support local entrepreneurs, create jobs and enhance San Jose’s brand as a global port of entry to the region.
In classic Silicon Valley style, rather than settling for the typical zero-sum thinking, the San Jose City Council proved creative and found a way to grow the pie with home sharing. That’s why I am confident they will ultimately do the same when the time comes to embracing all the positives that ridesharing will bring to SJC and the entire Silicon Valley.
That time is now.
Kish Rajan is chief evangelist at CALinnovates, a technology advocacy coalition bridging the gap between innovators and government. Rajan previously served as director of Go-Biz, the State of California’s office of business and economic development under Governor Jerry Brown. Disclosure: CALinnovates’ membership includes sharing economy companies.
