“If it looks like a duck, swims like a duck, and quacks like a duck, it’s probably a duck.“

Lawmakers should not be fooled by the name game. Whether they call themselves an “app,” a ride-hailing service or a transportation network company (TNC), an on-demand service that picks up passengers from Point A to Point B for compensation is a taxi. For clarity, I’ll refer to this group as TNCs.

A bit of background: In 1945, my father, Charles S. Morita, led industry efforts to repeal the “taxi medallion” (affixed to the front hood to indicate licensure) system. Ever since, our family has fought off every attempt to limit taxi licenses. We successfully fought to end the airport taxi monopoly, making it open for all taxicabs that meet the airport’s standards. Our company’s service to residents and visitors of Honolulu, dating back to 1938, proves our commitment to consumers.

Honolulu is one of the few places in the world with “open entry” — no medallions and no limits on taxi licenses. Honolulu’s Taxicab Ordinance is one of the most liberal to be found anywhere, while its standards and rules protect consumers and public safety.

Some local taxi companies, like ours, utilize mobile apps and other leading-edge technology, yet we are not asking for an exemption from consumer protection or safety regulations. TNCs, on the other hand, seek to exempt themselves from pro-consumer regulations as a business strategy to lower their costs while targeting high-paying passengers. This is clearly not in the best interest of the public.

Insurance

To lower their insurance liability and premiums, TNCs seek to rewrite Hawaii’s insurance law to limit their exposure only to when (1) their app is “on” and (2) their app is “considered on” with passenger(s) in the vehicle. Pedestrians and other motorists, not involved in the ride, are subject to unknown and varying coverage. Coverage issues may be more complicated as TNC drivers are known to use multiple apps. Without providing the insurance policy for examination, who knows what the TNCs’ actual terms and conditions of coverage are?

Fares

Taximeters are internationally recognized measuring devices that calculate fares based on mileage (connected to the odometer) and elapsed traffic delay/waiting time. The meters are first calibrated then individually inspected and sealed by the state’s Weights &Measures Division to ensure accuracy and detect tampering. The meter provides a uniform measurement standard for inspectors to collect meter readings to analyze productivity, revenues and operating statistics.

In contrast, TNCs utilize algorithms that are not transparent, meaning authorities can’t track how different fares are calculated or provide oversight.

TNC’s surge pricing or prime-time tips can unexpectedly and significantly increase fares and should be prohibited. Fares seem cheaper because of steep discounts to attract customers, but passengers can be vulnerable to drivers who do not accept fares until prices surge. App quotes are simply “estimates.” The final fare isn’t disclosed until after the ride is over and the charge is processed. Mapping technology may provide convenient route options, but does not meet the legal requirement for drivers to take the “shortest most economical route.”

Background checks

Fingerprint matching is the gold standard for screening identity. TNCs use only names/birthdates which often fail to reveal criminal history. Running background checks through the FBI national crime database is a reasonable uniform standard for drivers providing transportation to the public. In fact, Charley’s Taxi has long insisted that the two-year cap to review an applicant driver’s criminal history should be expanded to 10 years.

Non-discrimination

TNCs currently represent a small fraction of total trips. There is a digital divide as many Americans, like the elderly or poor, don’t use mobile phones and/or credit cards. Regulated taxicabs offer critical lifeline transportation for people with disabilities. If taxicabs disappear, the reduced availability of lifeline transportation services would disproportionately affect people with disabilities, the elderly and/or the poor.

I believe that taxicabs can co-exist with TNCs as long as everyone is held to the same standards and regulations. One group should not get a competitive advantage — through the avoidance of consumer protection and safety. All we ask is for a level playing field.