Have you seen cars driving around Nashville decked out with a fuzzy pink mustache? The pink mustache is the logo, if you will, for Lyft, a ride-sharing service. Lyft, Ubert and Sidecar all operate in much the same manner. For Lyft, individuals who need transportation can summon a driver by using their phones — the companies have apps for their services. A pre-screened driver then picks up the individuals and takes them to their destination. The driver does not charge a fare but instead takes a "donation." The cost associated with these types of ride-sharing services has been estimated to be 30% less than a traditional taxi, which is wonderful for the consumer.
But there are some questions related to these services. While these ride-sharing services are quasi-taxis, they are not currently subject to a number of regulations applicable to taxis and limousines. For instance, the drivers do not have to have chauffeur licenses. While the vehicles must be a 2000 model year or later, the vehicles are not subject to inspections. Unlike Nashville taxis, there is not presently a requirement that they be licensed by the city’s Transportation Licensing Commission.
And then there is the issue of liability and insurance. Lyft’s website indicates that it does criminal background checks and Department of Motor Vehicle checks for all of its drivers. These checks are designed to weed out drivers who have been convicted of a DUI, a violent crime, etc. Lyft also requires its drivers to have the state minimum in insurance coverage and then Lyft has its own, additional $1,000,000 liability coverage.