New legislation will make safe, convenient, affordable transportation options more available to Iowans, while also creating job opportunities. House File 2414 sets consistent standards for Transportation Network Companies (TNCs) in Iowa.
TNCs, including Uber and Lyft, provide on-demand service. You use a ride-hailing app on your smartphone to find a driver to give you a ride for a price. After providing credit card information, you summon a ride by entering your current location and where you want to go. A driver heads your way in their own vehicle, monitored in real-time on your phone. When the driver arrives, you’re taken to your destination. Your credit card is billed based on the time and distance of the trip, and you get an electronic receipt.
TNCs got their start in California just a few years ago, but already have hundreds of thousands of drivers, and operate in cities and countries across the globe. Why are they so popular?
- Flexibility – TNC drivers can work as much or as little as they want. Many do it in their spare time—on evenings and weekends, between classes or while the kids are at soccer practice.
- Convenience – Many passengers say that catching a ride from a TNC is quick, easy and affordable.
- Fills a need – TNCs can be helpful to those who don’t have access to other transportation in communities of all sizes, and is another tool for cutting down on drunk driving.
- Job creation –TNC drivers get more value out of their car by using it to make money, rather than letting it sit parked.
While TNCs already do business in Iowa, we have no statewide standards for how they operate. HF 2414, as passed by the Senate, addresses key issues that have emerged nationwide. The bill protects drivers, passengers, the public and other businesses by:
- Leveling the playing field for taxicabs
- Establishing oversight through the Department of Transportation
- Laying out insurance and financial responsibility requirements
- Setting driver qualifications
- Requiring a zero-tolerance drug and alcohol policy
- Requiring criminal and driving background checks
- Setting standards for vehicle safety
- Setting standards for how TNCs interact with passengers and protect their privacy
The bill was previously approved by the House in a more limited form. It now returns to the House for its consideration of Senate changes.