One thing should be clear from all of the e-mails and updates on social media: AB 2293 and AB 612 are a bad thing for rideshare companies. Over the past week, Uber, Lyft and even Sidecar have been begging drivers and passengers to contact their senators and tell them to vote no on these two bills here in California.
But as I’ve stated in the past, these companies are looking out for their bottom line, not yours. It’s important to take a look at both sides of the issue and not let Uber and Lyft or the government politicians dictate your stance. I suggest that you read the actual text of AB 2293 and AB 612 before jumping into the debate.
My feelings haven’t changed much since the last time I wrote about this but there has been one major development: Lyft and Uber now offer primary insurance coverage when you are en route to a passenger or have a passenger in the car. AB 2293 says that the TNC would be forced to provide primary insurance for drivers and insurance coverage would begin the moment a driver logs on to the app thus eliminating the insurance gap.
Related Article: Should You Support AB 2293 and AB 612?
So basically what the whole bill boils down to is providing the same level of insurance that Lyft and Uber currently provide during rides to the portion of your ride when you’re without a passenger. I think this is a good thing for drivers because it closes the insurance gap but it is complete and utter overkill. Lyft and Uber will have to pay for commercial style insurance even though our cars are likely parked on the side of the street. This is wildly inefficient and defeats the whole purpose of the sharing economy in the first place.
I know a lot of riders are upset and frustrated with the TNC’s for the pricing cuts but I’m not sure that supporting this bill is the right way to send a message. In the short term, it might seem like a good thing but I’m more concerned with the long term viability of rideshare. I think the insurance gap is still a problem but I am sure there are some insurers out there willing to charge a few bucks extra to insure my car while I’m sitting in a parking lot waiting for a ride.
I don’t support AB 2293 but I don’t think it’s the worst thing in the world if it does pass.
AB 612 is bad for everyone. If someone has read the full text of the bill and still thinks it’s good for rideshare, they probably are sitting in front of a yellow taxi cab. This one is a no brainer since it would effectively turn TNC’s into taxi services again and we all know how well that worked.
I am against AB 612 big time.
Top News Stories From the Week That Was in Rideshare
Lyft COO Out After Tensions With Founders – It’s never a good thing when your COO gets fired but this tends to happen a lot at start-ups. You’ve got a lot of big egos, big dreams and big money involved.
Google Maps Has Been Tracking Your Every Move, And There’s A Website To Prove It – This is kind of creepy but I also don’t go anywhere that exciting so if someone gets a hold of my Google Maps history good for them.
Squatters don’t sit well with Airbnb hosts – A lot of people think the sharing economy is a great thing but there’s always going to be more risk when you are getting higher rewards. Here’s another story I wrote on the ugly side of VRBO.
People Keep Getting Into Strangers’ Cars Because They Think It’s An Uber – Those Prius drivers might get great gas mileage but at least I never have to deal with this! Haha.
Uber announces Cornerstore, a delivery service to compete with Amazon and Google Express – I have been really impressed with Uber’s willingness to branch out of rideshare. But I also know that a lot of the smartest people I have ever met have told me to focus on one thing first and get really good at that before you move on to the next project. I worry that Uber may be spreading itself out a little too thin when there are much bigger issues at hand than delivering groceries.
Savings Angel Episode 60 (Podcast) – Here’s a cool podcast I found about a fellow personal finance blogger who just discovered Lyft. Lyft and Uber are a huge hit in the personal finance niche 🙂
Side Hustle Ideas – The Rideshare Guy was featured in a recent blog post about making money on the side.
Uber, Lyft Drivers Still Cited and Impounded (Video) – One of our faithful readers was interviewed on the news so I thought it’d be cool to share his video.
Android’s Heating Up – Lyft is rolling out heat maps to Android phones first for once. Good thing my GS3 just broke and I had to switch to my old iPhone 4!
Lyft Caption Contest
Here’s a list of all the other rideshare articles I read this past week.
Readers, what do you think about AB 2293 and AB 612? Are they something that will be beneficial for drivers, passengers or TNC’s?
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-The Rideshare Guy