IssueBriefing: Background Checks for Uber and Lyft
May 12, 2017 | By Rhea Karuturi
As ride sharing apps like Uber and Lyft expand their base through cities around the world, legislation has struggled to keep up. Amid various ongoing publicity scandals, news of drunk driving and kidnapping by Uber drivers have left many consumers uneasy. A new state law effective this year tries to address background checks for drivers, but further reforms may be on the horizon.
AB 1289, a bill by Assemblyman Jim Cooper (D - Elk Grove), comes on the heels of an investigation conducted last year by the the San Francisco and Los Angeles district attorneys' offices which found that over 20 Uber drivers had been convicted of serious felonies.
Previously, the checks conducted by Uber and Lyft were limited to looking back seven years due to state law. But the new checks will also be local and national criminal background checks, which look back over a lifetime.
Assemblyman Cooper argues that law is necessary because driving is different from other professions, and riders, especially women, are often very vulnerable when using these ride-sharing services.
The checks ensure that the companies don’t hire drivers who are on the public sex offender database or people who have been convicted of a misdemeanor assault or battery; a domestic violence offense; driving under the influence of alcohol or drugs; or a specified felony violations in the last seven years. Each instance of failure to comply with these standards can lead to a fine of $1,000 to $5,000 for the ride sharing companies.
An initial draft of the bill included required fingerprint background checks conducted by the government instead of the third party private companies currently used by the companies. While that part did not make it to the final version of the bill, Assemblyman Cooper suggested it would be revisited if the situation did not improve.
This isn’t the only legislation trying to regulate the new niche occupied by Uber and Lyft. The relationship between Uber, Lyft and the city’s transport authorities has been strenuous on many counts. In 2016, Uber launched its self-driving car project and ran into trouble when one of its Volvos ran a red light on the very first day in San Francisco. This prompted California’s Department of Motor Vehicles to issue an immediate cease-and-desist letter demanding Uber remove its self-driving cars from public roads until it obtains a permit — which the company fought by claiming it’s self driving cars were not autonomous vehicles.
This year, across the country, New York City may soon force Uber and other ride-hailing apps to allow tipping drivers after over a year of legal battles. Although Lyft already offers an in-app option for riders to tip drivers, Uber has resisted, claiming that riders don’t like tipping and that drivers don’t gain much from tipping. They have also argued that tipping could cause discomfort to rider or might incentivize drivers to pick people up from wealthy neighborhoods to maximize their tips, under serving the rest of the city. But if New York succeeds, it may open the door to changes across the rest of the U.S. as well.