Uber warns law cracking down on drivers will make DNC travel a nightmare
Rachel Schilke
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Ride-share company Uber warned Chicago Mayor-elect Brandon Johnson and the Democratic National Convention that legislation in Springfield, Illinois, bringing ride-share companies to the same level as taxis could cause a transportation availability nightmare when the convention rolls around.
Uber wrote two letters to DNC Chairman Jaime Harrison and Johnson expressing dissatisfaction with the legislation that will put app-based ride-share companies on par with taxis by increasing requirements for insurance.
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The bill, which is facing amendments in the House, would end ride-share companies’ exemption granted in 2015 from the common carrier civil liability doctrine. This measure holds transportation companies to a higher standard by requiring them to be liable for their drivers’ conduct.
Democratic state Rep. Jennifer Gong-Gershowitz and other sponsors say the bill is aimed at enhancing passenger safety by allowing a rider to file a liability claim against the company, rather than just the driver, and holding drivers accountable.
However, the ride-share company says these new regulations will lead to a higher cost for rides, because fewer people will want to drive — a possibility that could negatively impact transportation during the convention next year.
Josh Gold, Uber’s senior director of policy and communications, advised Harrison to not be “caught off guard” when driver availability and numbers go down, telling him to “prepare appropriately for the upcoming convention,” per the Chicago Tribune.
Gold said the measure “could lead to new barriers or eligibility requirements for drivers, which could lead to fewer drivers on the road. Fewer drivers may mean higher wait times and less reliability. On extremely busy days, like during the convention, there might not be enough drivers to meet rider demands.”
The convention is set to take place from Aug. 19 to Aug. 22, and it is expected to draw 5,000 to 7,000 delegates and alternates and bring about 50,000 visitors to the Windy City.
The senior director took an economic approach with Johnson, writing that “taxes & fees on ride-share bring in around $130 million in revenue to the city of Chicago, some of which is jeopardized by this proposal.”
“Less drivers and fewer trips means the city could lose tens of millions of dollars in projected revenue from ride-share taxes,” Gold said.
State legislators who support the bill thought Uber’s problems with the legislation were telling.
Democratic state Sen. Robert Martwick, the chief Senate sponsor of the measure, critiqued the reasoning Uber gave in the letter.
“‘Oh gosh, if we can’t have bad drivers then (there’ll) be less drivers,’ so we need to have bad drivers so that we have enough?” Martwick said, mocking the company’s reasoning.
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“I don’t think that the people who get in the back of an Uber and entrust their safety to the person behind the wheel (want) bad drivers,” Martwick said to the Chicago Tribune. “This is about consumer protection. It’s not about what makes the most profitable model for Uber. That’s for them to figure out how to be profitable.”
The legislation, if passed in the House, will head to Gov. J.B. Pritzker (D-IL) to become law. The Illinois General Assembly’s session is scheduled to end next week, giving the lower chamber a limited time to make the changes.