Memorandum in Opposition

Re: A.8195-B (Cahill) AN ACT to amend the insurance law, in relation to

transportation network companies; and to amend the executive law, in relation to
establishing the transportation network company drivers injury compensation
fund
Lyft is an online ride-sharing application that connects people with efficient, friendly and safe
drivers in their community. At a basic level, Lyft makes it easier for people to offer their
neighbors a ride and help people carpool more efficiently.
Our service enhances transportation options, reduces traffic congestion and CO2 emission, and
serves as an alternative to drunk and impaired driving for communities across the country.
Furthermore, it is also a unique and flexible economic opportunity that turns anyone with a car
into an entrepreneur who can set a schedule according to their terms. The Lyft driver community
is made up of retirees, single moms, students, folks trying to get around and families simply
trying to make ends meet
More than anything, Lyft is about giving people choices. Over thirty-five states across the United
States have passed insurance legislation that regulates Lyft in a safe and comprehensive manner.
We hope that New York can join that effort and allow consumers to have the ability of choosing
Lyft in cities across this great state. Lyft currently operates in over 200 major cities across the
nation, including such diverse places as Seattle, Boston, Miami, Los Angeles, Dallas,
Minneapolis, Baltimore, and Washington, DC.
Lyft eagerly launched its peer to peer ridesharing services in Rochester and Buffalo in 2014 and
was providing thousands of rides per week before being forced to shut down operations by the
New York State Attorney General pending legislation to authorize proper insurance coverage.
New York is currently the only State in the country that has an affirmative statewide prohibition
that bars the operation of ridesharing. Without fixing this insurance issue, transportation
network companies (TNCs) like Lyft will not be able to offer their transportation innovations
Upstate. In a recent Siena Research Institute Poll, New Yorkers from all areas and demographics
favored ridesharing services by a vast and overwhelming majority.

Lyft supports the original version of this bill, which reflected the national model TNC insurance
legislation that had been carefully considered and negotiated between TNCs and the major
insurance carriers, and was officially adopted and endorsed by the National Conference of
Insurance Legislators (NCOIL). This model has since been adopted in over 30 states.
Unfortunately, Lyft strongly opposes the amended version of A.8195 because it changed key
provisions that will make the provision of ridesharing services upstate prohibitively expensive,
both for the TNC companies and consumers, and because it sets forth an insurance framework
that is impractical to companies that are exceedingly eager to enter the marketplace in New York
State.

Coverage limits are inconsistent with current coverage levels in New York.
Currently commercial limits for upstate for-hire vehicles are set at $25,000/$50,000, a
limit which applies for the duration of the ride. The model TNC language proposed
doubling these current limits ($50,000/$100,000) during period one, or the time when
there is no passenger in the car. Once a driver accepts a ride and throughout the process
of transporting a passenger, the model TNC legislation proposed setting the limit at $1
million blanket coverage. Lyft supported these increases. This bill would raise these
limits even higher, to $100,000/$300,000 during period 1, and to $1.5 million during
the period after a driver accepts a ride. These proposed limits are significantly higher
than any limits adopted in any other state in the nation. They are also not based on any
realistic actuarial or risk assessment. Such limits would inflate costs of the service to
riders, and would effectively price TNCs out of most areas in the State.

This bill would put drivers personal information at risk. This bill includes a
requirement that TNCs provide identifying information on its drivers to the New York
State Department of Motor Vehicles and provides a mandate that this agency maintain
such registry. Lyft considers this information to be proprietary and confidential, and any
such disclosure of personal information would not only be a violation of the privacy of its
affiliated drivers, but would also have a hugely detrimental effect on its ability to
compete with other larger TNC market players.

Lack of preemption. This bill affirmatively provides that any municipality or locality
could add additional insurance requirements on top of the excessive coverage amounts

already set forth in the bill. TNC coverage limit requirements should not vary by locality.
The bill's provision to permit localities to adopt coverage limits requirements higher than
those provided in this bill will serve to set in motion a confusing matrix of variable limit
requirements, adding significant cost to the system and engendering a compliance
nightmare.

Comprehensive and Collision Coverage The bill provides that each driver may at his
or her option require the TNC to provide comprehensive and collision insurance on the
drivers vehicle. This would be an unprecedented requirement in New York auto
insurance law, as well as for TNC insurance anywhere in the United States. No state
requires drivers to obtain comprehensive and collision insurance on their personal
vehicles. Rather, it is most often required as part of a lease contract wherein the owner of
the leased vehicle, usually a bank or credit union, requires the lessee as part of the lease
terms to maintain such insurance. A TNC is not a party to any such contract, as such it
should not be forced to be the reinsurer of such contract. Moreover, rather than relying on
the TNC to reinsure banks and others in case of a failure to comply with the terms of such
contract by a lessee, a robust set of laws and judicial jurisprudence already exists to deal
with such breaches.

Provisions would stifle product development, innovation, and competition in the

insurance market. The model TNC language allows insurance requirements to be
satisfied through insurance purchased by the driver, by the TNC, or by a combination of
the two. This bill would eliminate this flexibility by stating that the insurance must be
provided only by the TNC through its TNC group policy. This bill would make prohibit
the development of a market for innovative products that could be made available to
drivers who could choose to purchase them.

Lyft remains eager and ready to open up operations in New York State, and to work with
municipalities and localities to develop reasonable regulations that ensure a safe, reliable, and
fairly priced product for New York drivers and riders. However, the amended version of A.8195
contains provisions that will stifle competition and product development, place driver personal
information at risk, and most importantly price insurance coverage to a point that it will be
prohibitively expensive for TNCs and their riders. For these reasons, Lyft OPPOSES this bill
and urges the Assembly to look back to the original print.