Puneet Varma (Editor)

Transportation network company

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Transportation network company

A transportation network company (TNC) connects (Sometimes known as Mobility Service Providers or MSPs), via websites and mobile apps, paying passengers with drivers who provide such passengers with transportation on the driver's non-commercial vehicle. TNCs include Gett, Lyft, Cabify, Uber, goCatch, Via, Ola Cabs, GoCar, GO-JEK, Careem, Wingz, Taxify, GrabTaxi, Didi Kuaidi, Easy Taxi, and Fasten. TNCs are examples of the sharing economy.

Contents

In 2013, the California Public Utilities Commission defined, for regulation purposes, transportation network company as a company that uses an online-enabled platform to connect passengers with drivers using their personal, non-commercial, vehicles.

Virginia defines a TNC as a company that "provides prearranged rides for compensation using a digital platform that connects passengers with drivers using a personal vehicle."

"Ridesharing"

TNC platforms have sometimes been called "ridesharing", but transportation experts prefer the term "ridesourcing" to clarify that drivers do not share a destination with their passengers. The term "ridesourcing" means the outsourcing of rides.

Legality of TNCs and opposition from taxicab operators

Taxi industry groups have argued that TNCs are illegal taxicab operations which take away their business. Several communities, governments, and organizations have established rules and regulations that specifically govern TNCs and, in some jurisdictions, TNCs are completely illegal to operate. For information, see Uber protests and legal actions.

For riders

Compared to taxicabs, TNCs offer advantages to riders including the ability to:

  • Request service via mobile app or website, which is not available from all taxicab companies.
  • Request service in less populated or poorer areas that are not regularly served by taxicabs.
  • Track the location of the driver and know exactly when the car will arrive.
  • Have the service monitored by the TNC.
  • Have the driver subject to background checks, training, drug and alcohol policies, and insurance coverage, depending on the jurisdiction.
  • Use a cheaper service than a taxicab, since taxicab rates are often set by local jurisdictions.
  • Get a receipt via email.

    • For drivers

    For the drivers, TNCs provide "flexible and independent jobs".

    For society

    TNCs allegedly reduce congestion because, since the cars "can't accept street hails, they do much less unnecessary driving-around than either yellow cabs (who are cruising for hails) or individuals (who are looking for a parking spot)."

    One study showed that having a TNC operating in a city reduced drunk driving rates; however, another study reported that TNCs do not reduce drunk driving rates.

    A March 2016 study by Judd Cramer and Alan B. Krueger of the National Bureau of Economic Research showed that an ride via a TNC uses capacity more efficiently than traditional taxicabs as TNC drivers are more likely to have a passenger than an taxicab.

    Driving the rider's car

    Another variation of a TNC is to use online marketplaces to provide drivers who drive the customer's personal vehicle for them. Examples include Dryver, IDriveYourCar.com, and WeDrive. In these models, customers typically reserve a driver who arrives at their location, takes them wherever they need to go in their own car, and then returns the car and the customer home at the end of the reservation.

    For society

    TNCs increase traffic congestion in some cities, due to the large number of TNC vehicles constantly cruising waiting for customers.

    References

    Transportation network company Wikipedia
    (Text) CC BY-SA