REALLY

A new publication proves that when it comes to transportation options and RIDE SHARING? regulation, words matter.

By Josh Kavanagh, CAPP Understanding Commuter Transportation Terms: Carpooling Understanding Commuter Transportation Terms actweb.org

ransportation options are expanding rapidlyCategory Subcategory Description Marketing or Matching Process Driver Motivation Rider Motivation Public Benefits Insurance Provided By Ownership Equity

in communities across the United States, and Family Pool Family members, usually spouses, drive No matching software or other marketing • HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto N/A together to work and return home together. is utilized. Spouses or partners must have • Financial/gas savings • Financial/gas savings • Energy conservation insurance needed that’s a good thing; expanding choice is good Family pool trips are often combined with common routes and work schedules in order • Spending time with significant other • Spending time with significant other • Parking demand reduction T other errands before and after work (e.g., to ‘pool’. • Air quality improvement for consumers and can spur innovation and eco- grocery shopping, dropping kids off). nomic development. However, when those choices Employer-based Employers or transportation management Employers, TMOs, or another entity will • HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto Some employers will partner come in the form of disruptive technologies and Carpool organizations (TMOs) encourage employees encourage employees at a worksite or an • Shared cost • Financial/gas savings • Energy conservation insurance needed with public agencies to provide to carpool. Poolers either meet at a common employment center to carpool together. • Employer/TMO-provided • Employer/TMA-provided • Parking demand reduction special programs for low-in- business models, they create unique challenges. spot near their home, such as a park & ride Employers may use ridematching software to incentives: incentives: • Air quality improvement come workers, including guar- lot, or the volunteer driver picks up the riders identify employees with common commute • Preferred parking • Preferred parking anteed ride home programs. With no history to serve as reference, consumers at their homes. Poolers will sometimes share times are origin points. The employer, TMO, • Prizes/giveaways • Prizes/giveaways the costs of the trip or take turns driving. or agency may offer preferred parking, • Financial incentives • Financial incentives may not understand what they’re buying and local prizes/giveaways, or other small incentives. leaders lack a regulatory template to ensure that Slugging People looking for a ride to work will gather Slugging/casual carpooling is very organic HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto No equity protections. Slugging the public interest is protected. (Casual at a common park & ride location. Drivers and only occurs in areas with a well-man- • Financial/gas savings • Energy conservation insurance needed is generally utilized by com- Carpooling) pick people up from these groups based on aged HOV lane system and sufficient • Parking demand reduction muters travelling more than 20 Among the most dynamic cases of innovation their common work-area destinations. The population density. • Air quality improvement miles to and from work. same is true for the trip home: riders gather outpacing consumer information and regulation at a common location and pool together is the rapid expansion of transportation network back to their park & ride location.

companies (TNCs) that include and Lyft. Ride-matched Local/regional public agencies provide Riders and drivers are recruited in a variety • HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto Some programs geared toward Carpool ridematching services linking commuters of ways, including mass media (radio/print/ • Shared cost • Financial/gas savings • Energy conservation insurance needed low-income workers; most Describing themselves as “ridesharing” services, who have common routes to and from work highway signage), surveys, or targeted • Other incentives: • Prizes/giveaways • Parking demand reduction programs offer guaranteed ride as well as common schedules. Poolers will means such as employer-based marketing • Preferred Parking • One-time financial incentive • Air quality improvement home program. these companies mounted a challenge to estab- sometimes share the costs of the trip or take (see above). Ridematching software is • Prizes/giveaways turns driving. usually used to identify drivers and riders • Small financial incentives (not lished taxi and livery services in large and mid-size who share a common route and work sched- exceeding cost of commute) cities nationwide. ule. Ridematching is generally paired with a guaranteed ride home program. Consumers have, by and large, welcomed these new entrants enthusiastically, viewing them as Real-time Drivers will use a phone- or tablet-based Some regional governments have programs • HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto Little evidence to suggest eq- Carpool app to locate commuters in real time who that contract with real-time carpool providers • Shared cost • Shared cost • Energy conservation insurance needed. In uity issues are being addressed an antidote to the perceived high cost and com- are looking for a ride along a common route. such as CarMa, NuRide, and Zimride. They • Real-time flexibility • Real-time flexibility • Parking demand reduction most states true car- through real-time carpool as In some cases, micro-payments are used for offer a variety of incentives and promotions • Prizes/giveaways • Prizes/giveaways • Air quality improvement pooling is exempt from drivers (and passengers) have placency of the taxi and livery industry. That cost-sharing (but not profit). In other cases, for both drivers and riders. The incentives do commercial insurance the option to reject offering or drivers are incentivized through coupons or not exceed the cost of the commute. requirements so long accepting rides. However, there industry, which is heavily regulated, was quick prizes. At no point does the driver profit from as financial transac- is certainly space for real-time this activity and the incentive is cost-sharing, tions are shared costs ridesharing to be used as a job to cry foul, citing an uneven playing field and not profit. versus profit. access tool.

42 INTERNATIONAL PARKING INSTITUTE | NOVEMBER 2014 REALLY RIDE SHARING?

Understanding Commuter Transportation Terms actweb.org

Category Subcategory Description Marketing or Matching Process Driver Motivation Rider Motivation Public Benefits Insurance Provided By Car Ownership Equity

Carpool Family Pool Family members, usually spouses, drive No matching software or other marketing • HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto N/A together to work and return home together. is utilized. Spouses or partners must have • Financial/gas savings • Financial/gas savings • Energy conservation insurance needed Family pool trips are often combined with common routes and work schedules in order • Spending time with significant other • Spending time with significant other • Parking demand reduction other errands before and after work (e.g., to ‘pool’. • Air quality improvement grocery shopping, dropping kids off).

Employer-based Employers or transportation management Employers, TMOs, or another entity will • HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto Some employers will partner Carpool organizations (TMOs) encourage employees encourage employees at a worksite or an • Shared cost • Financial/gas savings • Energy conservation insurance needed with public agencies to provide to carpool. Poolers either meet at a common employment center to carpool together. • Employer/TMO-provided • Employer/TMA-provided • Parking demand reduction special programs for low-in- spot near their home, such as a park & ride Employers may use ridematching software to incentives: incentives: • Air quality improvement come workers, including guar- lot, or the volunteer driver picks up the riders identify employees with common commute • Preferred parking • Preferred parking anteed ride home programs. at their homes. Poolers will sometimes share times are origin points. The employer, TMO, • Prizes/giveaways • Prizes/giveaways the costs of the trip or take turns driving. or agency may offer preferred parking, • Financial incentives • Financial incentives prizes/giveaways, or other small incentives.

Slugging People looking for a ride to work will gather Slugging/casual carpooling is very organic HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto No equity protections. Slugging (Casual at a common park & ride location. Drivers and only occurs in areas with a well-man- • Financial/gas savings • Energy conservation insurance needed is generally utilized by com- Carpooling) pick people up from these groups based on aged HOV lane system and sufficient • Parking demand reduction muters travelling more than 20 their common work-area destinations. The population density. • Air quality improvement miles to and from work. same is true for the trip home: riders gather at a common location and pool together back to their park & ride location.

Ride-matched Local/regional public agencies provide Riders and drivers are recruited in a variety • HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto Some programs geared toward Carpool ridematching services linking commuters of ways, including mass media (radio/print/ • Shared cost • Financial/gas savings • Energy conservation insurance needed low-income workers; most who have common routes to and from work highway signage), surveys, or targeted • Other incentives: • Prizes/giveaways • Parking demand reduction programs offer guaranteed ride as well as common schedules. Poolers will means such as employer-based marketing • Preferred Parking • One-time financial incentive • Air quality improvement home program. sometimes share the costs of the trip or take (see above). Ridematching software is • Prizes/giveaways turns driving. usually used to identify drivers and riders • Small financial incentives (not who share a common route and work sched- exceeding cost of commute) ule. Ridematching is generally paired with a guaranteed ride home program.

Real-time Drivers will use a phone- or tablet-based Some regional governments have programs • HOV lane access • HOV lane access • VMT/congestion reduction Car owners; no special Personal auto Little evidence to suggest eq- Carpool app to locate commuters in real time who that contract with real-time carpool providers • Shared cost • Shared cost • Energy conservation insurance needed. In uity issues are being addressed are looking for a ride along a common route. such as CarMa, NuRide, and Zimride. They • Real-time flexibility • Real-time flexibility • Parking demand reduction most states true car- through real-time carpool as In some cases, micro-payments are used for offer a variety of incentives and promotions • Prizes/giveaways • Prizes/giveaways • Air quality improvement pooling is exempt from drivers (and passengers) have cost-sharing (but not profit). In other cases, for both drivers and riders. The incentives do commercial insurance the option to reject offering or drivers are incentivized through coupons or not exceed the cost of the commute. requirements so long accepting rides. However, there prizes. At no point does the driver profit from as financial transac- is certainly space for real-time this activity and the incentive is cost-sharing, tions are shared costs ridesharing to be used as a job not profit. versus profit. access tool.

parking.org/tpp NOVEMBER 2014 | INTERNATIONAL PARKING INSTITUTE 43 Consumers have made it clear that transportation network companies such as Uber and Lyft meet a need in the marketplace and that more and rider. For example, in some cases, Arizona would choice is arguably a good thing. have even required carpoolers and vanpoolers who were matched with ridematching software to register with the department of motor vehicles, among other things. calling for regulation of the TNCs. Similarly, consumer We at ACT say the focus on technology misses the and social justice advocates raised questions about point. The unique defining attribute of TNCs is not how everything from safety, driver screening, and insurance drivers and riders are connected, but that drivers for coverage, to the risk of inequities in service to ethnic TNCs operate like businesses—with a profit motive— minorities, low-income communities, and physically unlike carpool or drivers who do not profit. disabled riders. Traditional ridesharing, carpooling, and vanpooling, Recognizing the need to strike a balance between are not for-hire commercial services. Riders do not supporting innovation, establishing a level playing field hail a carpool or a vanpool, and drivers do not profit or for business, and protecting consumers, city councils, collect as they do with a taxi or TNC. Traditional state legislatures, and regulatory agencies leapt into the ridesharing involves people pooling from a common fray and attempted to create a regulatory framework origin, such as a residence or park-and-ride lot, or to a for TNCs. Unfortunately, with most jurisdictions acting common destination, such as an employer or business independently and without a regulatory template for park. In some cases, an arrangement is made that allows these new companies, the results have been a patchwork carpool or vanpool drivers to recoup the cost of the quilt of regulation that places a burden on TNCs, which commute or receive some de minimus consideration, but operate nationally, and often comes with unintended the pool driver is simply a volunteer commuter whose consequences for consumers, public agencies, and goal is getting to the same destination and home again, existing industry. not to profit as a commercial driver.

Need to Know Information A Good Example The nonprofit Association for Commuter Transportation California’s Public Utility Commission made one of the (ACT), representing ridesharing and transportation more effective attempts to bring reasonable regulation to demand management (TDM) professionals, recently this new market while limiting unintended consequences. highlighted the unintended consequences of this effort The state’s findings and California Assembly Bill 2293 on its industry with the publication “‘Ridesharing’: What represent current best practices and are an excellent point Legislators and Regulators Need to Know.” It focuses on of departure for leaders in other jurisdictions attempting the TNCs’ self-description of their operations as ride- to navigate this new space. Copies are linked online in sharing and the implications when local leaders regulate the advocacy section of the ACT website, ACTweb.org. ridesharing without realizing the difference between Because all parties benefit from clear and standard for-profit driving services such as Uber and Lyft, and terminology, ACT released a matrix that describes traditional, noncommercial ridesharing. the various categories of personal mobility options, California and Arizona, for example, recently drafted including standard names, definitions, methodologies, legislation and policies meant to regulate TNCs such public benefits, and rider/driver motivations (see p. as Uber and Lyft, but definitional ambiguity almost 42–43). This quick reference guide is a must-have tool led to the unintended regulation of those engaged in for local leaders looking to make their intentions clear, traditional carpooling and vanpooling. ACT argues that whether in public statements or legislation. It is also well-intentioned efforts to address policy issues raised a critical tool for transportation industry and media JOSH KAVANAGH, CAPP, is director by TNCs that fail to distinguish between TNCs and professionals seeking to help the public navigate new of transportation traditional, non-commercial ridesharing could place options and follow the regulatory debate. services at the extraordinary burdens on carpoolers and vanpoolers. At the end of the day, consumers have made it clear University of Examples of potential unintended consequences could that TNCs such as Uber and Lyft meet a need in the Washington include requiring commercial insurance, commercial marketplace and that more choice is arguably a good and president of driver licenses, background checks, and registration thing. Local leaders have the opportunity to bring clarity the Association for acts as simple as two colleagues riding together in to and even stimulate that marketplace while protecting for Commuter Transportation (ACT). an employer-coordinated carpool program. consumer interests through thoughtful regulation, and He can be reached at In attempting to bring definition to the services pro- that starts with a complete understanding of existing [email protected] or vided by TNCs, some jurisdictions and agencies became personal mobility options and with standard terms and 206.685.1567. overly focused on the technology used to connect driver definitions.

44 INTERNATIONAL PARKING INSTITUTE | NOVEMBER 2014