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Bill eliminates local regulation of Uber

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LANSING, Mich- The Michigan House will vote on a bill that would remove local regulation of private car service apps like Uber, in favor of giving the state control.   Local Attorney Tom Sinas tells us why existing taxi companies and the insurance industry say, that's a bad idea.

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  • Chuck Cotton


  • Chuck Cotton

    A followup comment–The primary insurance company will not pay a cash claim and will cancel the private coverage because the private policy excludes commercial use for hire. Insurance fraud is a felony in the state of Michigan.
    There is no such type insurance offered in the industry as “App/on App/off, peer to peer, or “GAP” insurance.
    Uber and Lyft’s carrier is the James River Insurance company, an offshore Bermuda based company who is a non-registered insurance company in the state of Michigan. The policy it writes for Uber and Lyft is only a general liability surplus line commercial policy covering a million dollars for the companies ONLY, not the driver, or the passenger and the pedestrian. To date, there are over 62 claims and not a dime has been paid. Just one example is a Seattle incident and the passenger has over $40,000 in medical bills and Uber and James River turned their heads. Sadly, Sophia Liu, a six year old girl was hit and killed in a pedestrian lane in San Francisco and Uber and James River so callously did not pay a dime to any of the family as other family members were injured. 23 State Insurance Commissioners have declared the insurance invalid.
    The Michigan statues are just fine. They just need to be enforced against any rogue companies to operate on the streets and highways of the state.
    Uber and lyft claim they are only app companies and the laws do not apply. NO SO. They are the employer according to the Michigan Department of Labor and the Internal Revenue Service. Uber and Lyft CONTROLS everything portal to portal. The drivers are employees, not independent contractors. They have no business license to operate in the state of Michigan, no commercial license from the Michigan PSC-Motor Carrier, 6545 Mercantile Way, Lansing, no public auto liability for hire insurance with 24/7 coverage.-Nothing but a driver with a private car wandering the streets luring the public through an app. IT IS ILLEGAL. If the state continues to let these illegal companies operate freely without enforcement, and an accident, injury, or death occurs, then the state is totally liable and exposed.
    Hopefully these comments will circulate throughout Michigan.

    • Steve Besser

      Way to explain perfectly the cluster F*** of govt controls and regulations, and why it is horribly beyond the scope of govt….Boy oh boy, the idea of one person giving another person $10 for a ride to work or the store regardless if they profit from it, or whether they have insurance. The ONLY way to remove these bulls**t govt controls, is thumb our collective noses at the notion and do it anyways, thereby removing the effectiveness of said controls….Voting seems innefective these days to control the controllers, so it is up to citizens yearning for their freedoms back to say enough is enough and begin civil discourse by ignoring these controlling behaviors of our elected officials and their “nannying” of the sheep

  • Tom Baker

    Municipalities charge taxi/limo companies, etc., a license fee to operate. This is essentially a tax. In return, the taxi/limo companies enjoy a government created and enforced monopoly on driving passengers for hire in that municipality. If you don’t have a license, you can’t operate a traditional taxi/limo, etc. Like liquour licenses, (and for the same reasons) the number of taxi/limo licenses is strictly controlled and they are therefore expensive and/or hard to get. So, as a result of paying off the municipality, licensed taxi/limo companies can charge much higher fares than they could in a free market where they would face competition. The people squealing the loudest about this are those who have enriched themselves via the aforementioned monopoly and want to keep things just the way they are. This is, like all crony-capitalist schemes, a wealth transfer – from us to the government and government favored companies. This wealth transfer is only possible by increasing consumer costs by limiting choice and eliminating competition via government sanctioned and enforced monopoly. Uber, via the decentralizing forces of technology, is introducing competiton across the country. This is bad news for government and crony-capitalists, but good news for the little guy as competiton drives innovation and results in better service and lower fares across the board. There isn’t a really huge need for cabs in the Grand Rapids area, so my guess is that the city decided it doesn’t get enough revenue from licensing to make enforcement worthwhile. Bigger cities, afraid of losing millions in licensing fees, are fighting this tooth and nail.

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