The so-call ride-sharing companies like Lyft and Sidecar have been operating a service in the SF Bay Area where the customer uses an mobile app to request a ride, and where the company would then dispatch a vehicle for the customer. Those companies differentiate from the traditional taxicab and limo service because of the mobile app, and more importantly, the car is a personal vehicle of the driver, which contracts with the mobile app company.

Aside from the mobile app use, the major problem with these companies is that they’re unfairly competing with taxi and limo providers by not complying with state and local regulations, along with mandatory insurance requirements. As someone who runs a commercial transportation myself, I can tell you the regulations that I have to comply. The cost of compliance (especially the insurance requirement) also raise the cost of operation far beyond the cost of owning a regular, private car. Continue reading Ridesharing or running an illegal taxi/limo operation →