Should the Uber Car Owners reveal that their Vehicle was used for the Raid-Hailing when they sell It?

UberX and Lyft are treated as illegal by the Philadelphia Parking Authority. A statement from the agency released this information. PPA’s deputy executive director, Corinne O’ Connor, said in a statement that, PPA has issued 48 hours notice and after that it will continue enforcement against the illegal Transportation Network Company (TNC) in Philadelphia.

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Image Courtesy: Govtech

This action was taken after the expiry of the General Assembly Temporary Authorization of the raid-hailing companies. The PPA has relaxed its regulations because the taxi company owners and the drivers can’t compete with the app based raid-hailing company drivers. The Authority’s general counsel, Dennis Weldon, said that, this change brings PPA policy in control with the state law and they have also requested to allow the taxi industry to adjust to the changing market conditions.

The taxicabs have to be regulated differently because of the varying market. The taxicab industry hailed relaxed regulations, in order to create an analogy between the traditional taxi industry and the high tech new comers in the industry.

The President of the Taxi workers Alliance of Philadelphia, Ron Blount, said that, the tradition taxi drivers are half way, there to be united. There is some relief for the taxi drivers.

The popular raid-hailing companies which were operated in the city, Uber and Lyft said that, the announcement from PPA highlighted the need and the importance of guidance from the state legislature. Despite of the PPA’s decision, Uber said it will provide the services. The changes announced (in a statement which focused on the part of lawsuit taxi owners) brought in opposition of the Parking Authority.

The lawsuit stated the authority to allow UberX and Lyft and their related services to operate with the minimal power and they imposed heavy fees on the cabs, which also provide the same service as the Uber and Lyft, which will make them impossible to compete with others. The lawsuit stated that, the income of the cab or taxi owners reduced to 50% less of what they were earning in 2015.

In 2014, the cab owners were worth of about $545,000, whereas at present, they are worth about $10,000.

The parties went to the U.S District Judge Michael Baylson to request for a preliminary authoritative order against PPA. As the part of these hearings, the district judge, Baylson, asked clarification about the PPA’s position towards the Uber and Lyft lawyers and the plaintiffs in the case. The regulations that govern the taxi operations are also brought to the judge’s attention.

Brett Berman represents all the plaintiffs who own about 1000 taxis and he felt that, the information which was presented will request the PPA to make the regulatory changes. It was good that the taxi industry had a few days of hearings and he also mentioned that the PPA’s decision is a step towards the legal direction, but it is not a total solution for this problem. The success lies in providing the equal protection, but that is not solved yet.

Berman said that, the intention is no to send Uber and Lyft out of Philadelphia, but the ultimate aim is to treat both the taxis and the raid-hailing services like Uber and Lyft equally.
The 3,370 cabs in the city can get rid between the passengers and the front of the cab, which has the installed camera system.

The mileage limits of the cab will be increased from 250,000, this is the mileage which a cab exceeds in two and a half years and it has increased to 350,000. Till the vehicle has traveled 200,000 miles some of the inspection needs will be dropped.

The regulatory changes will permit the cab companies to use the technology and get profit by using the technology in the best way. The PPA has also permitted the cab companies to allow the various credit card transactions processes and it is required to take 5% from each credit card payment and it is standard in the retail industry and these changes have been approved at the authority’s meeting.

Weldon said that, PPA will also accept the other changing regulations which are yet to come in the future. The judge’s power was only the partial responsibility for the policy changes.

The taxicabs have to be regulated in a different manner. Because of the economic realities, Uber and Lyft are going to become illegal and the taxis are going to become legal. They must be regulated in such a way that will allow them to grow vigorously.

Some people feel that, the enforcement against Uber and Lyft are unstoppable because the legislature in which they were working has expired.

The assembly’s temporary authorization allowed Uber and Lyft to operate in Philadelphia only for the three months. The PPA didn’t say anything about how the authority should enforce restrictions against the Uber and Lyft businesses. Uber and Lyft can operate legally within the rest of Pennsylvania, and that expires within the year.

Except in Philadelphia, the PUC controls the operation of the public car services in other parts of the state.

What sorts of questions arise during the sale of Uber car? 

The most common question arises with every owner when they go to sell their Uber car is, whether it should be disclosed that the car is used for the raid-hailing services.

Once there is time for the Uber car to get sold, the owner need not tell the opposite guy that the car was used for raid-hailing services and many strangers sat at the back of the car and have used the car for having the ride.

The executive director of the Used Car Dealers Association of Ontario, Warren Barnard, said that, the Uber drivers have no compulsion to tell the raid-sharing information when they are about to sell their car. But he personally feels that, the drivers should tell that the car has been used for raid-sharing purposes to the person who is buying the car. But many of the drivers will not tell this.

In Canada, each province has many disclosures, which the auto dealers have to follow when they sell their cars.

According to the Ontario’s Motor Vehicle Dealer’s act, during the contract the dealers have to tell the buyers, for what purpose the car has been used, such as, taxi, police or emergency vehicle, limousine or as the daily rental.

No disclosure is needed for private sales
These rules apply to the auto dealers not for the private sellers. If the person is buying a car on the Kijiji, the seller, need not tell the buyer that it was the rental car or taxi.

From the perspective of the vehicle registration, the car owners need not tell about for what purpose the car has been used, which is the car has been used for Carpooling, rental. Ride-sharing, taxi or police service, these rules were framed by the Ontario ministry of transportation.

In Ontario, the sellers need not give the car past purpose, but they have to give the previous owners details, which will tell about the purpose of the car.

The president of the Automobile protection Association, George Iny, said that, if the car has been used as the Uber it reduces the market value or the condition of the car. So the exposure of the customers to claim the damages will be reasonable for the buyers.

This post on Uber car is written and submitted by Anand Rajendran.

Anand Rajendran is the Co-Founder and CEO of Zoplay. He is a writer and coffee lover. He is a graduate in Computer Science and Post Graduate in Entrepreneurship and leadership from Ulyanovsk State University, Russia. He is a passionate blogger & SEO Specialist. Zoplay is a Software Development company which has launched Cabily Script which is a Uber Clone with Android and iOS apps.

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