ABSTRACT
This chapter explores two pressing issues raised by the entrance of the TNC industry into the for-hire transportation marketplace in Seattle. The City Council floated a trial balloon with a recent resolution that proposed, among other matters, to establish a TNC minimum distance rate. This initiative is intended to address the low earnings of TNC drivers and the practice of below-cost pricing by the TNC industry. The below-cost pricing is a transparent strategy aimed at driving the taxicab industry out of business. The minimum distance rate is strongly opposed by the TNC industry. The second issue is an ordinance passed in 2015 that provides for collective bargaining by TNC and taxicab drivers. It is a recognition that, as independent contractors, drivers in both industries have no protection: unemployment insurance, workers’ compensation, minimum wage, medical insurance, family medical leave and bargaining (wages, hours and working conditions). The collective bargaining ordinance is still being litigated in the courts. The chapter concludes with a discussion about whether the taxicab industry will survive. Some of the reasons identified for the taxicab industry survival so far include low incomes X long hours, stand-and-hail trips, tips, method of payment, niche markets, second jobs and single-shifted taxicabs.
