A transportation network company (TNC) (sometimes known as mobility service providers or MSPs), connects via websites and mobile apps, pairing passengers with drivers who provide such passengers with transportation on the driver's non-commercial vehicle. TNCs include Gett, Lyft, Juno, 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.
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Legal definition
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.
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Legality 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.
Advantages
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 a 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.
Disadvantages
For society
TNCs increase traffic congestion in some cities, due to the large number of TNC vehicles constantly cruising waiting for customers. Bruce Schaller's report based on NYC data suggest that TNCs are unsustainable. TNC model allows avoiding the costs of insurance, sales tax, mechanical vehicle inspections, and providing a universally-accessible service. Some critics believes that TNCs success comes from being parasitic on the cities in which it operates. New regulations are proposed to compensate some of these disadvantages.
Source of the article : Wikipedia
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