Hello to all! I hope everyone has been staying cool during this very hot summer. If you think that summers in New York City have been getting worse, well, you’re right. In fact, New York City has actually been reclassified as having a humid subtropical climate. This reclassification, which was formally recognized by the US National Climate Assessment, is a departure from our previous humid continental climate and can be seen from the flourishing of fig trees and crepe myrtles to the increase of invasive species and pests that thrive in warmer, wetter conditions. But enough about the weather, because there are some important updates I have to get through. Let’s jump into it.
Last month, I wrote about Waymo and their plans to begin testing and eventually launch in New York City. As of early July, a small fleet of Waymo’s cars, with drivers at the wheel, have hit the city’s streets. They’re not offering rides yet, but rather are driving around for mapping purposes and to gather data across Manhattan and parts of Brooklyn.
There are many concerns and issues surrounding Waymo’s introduction to the city. Recently, a group of industry advocates and shareholders met with the city’s Department of Transportation (DOT) Commissioner Ydanis Rodriguez to discuss these concerns.
The main issue is the loss of jobs for for-hire vehicle (FHV) drivers. There’s no question that autonomous vehicles (AVs) are an existential threat to FHV drivers. However, issues were also raised with regard to threats to small businesses in the industry, safety risks on NYC’s complex streets, and accessibility issues for elderly and disabled riders. Commissioner Rodriguez and his staff listened to the concerns, but they believe AVs are an inevitability, and that the DOT’s role is to mitigate the concerns that they can while building a framework for them to operate safely.
I am not naïve about the inevitability of AVs in the world, but we need to continue to advocate for every measure that can be taken to protect drivers during the transition. There are still multiple legal hurdles that Waymo, or any company, must cross before they can bring fully autonomous vehicles to our streets, and along every step of the way, there will be those fighting to ensure that drivers are not forgotten.
That said, it is important to address the very real concerns of FHV drivers and small base operators, many of whom fear that their livelihoods are on the line. While AVs may be on the horizon, the complexity of New York City’s streets — with its constant traffic congestion, unpredictable pedestrian behavior, and unique street layouts — makes it unlikely that human drivers will be replaced any time soon. AV technology simply isn’t ready to handle the nuanced, real-world challenges that professional drivers navigate every day in this city.
Moving onto some State news, last month, the New York State Department of Financial Services (DFS) requested that taxi and FHV insurers submit “adequate and actuarially justified rates” by this August. As you surely know, the FHV insurance market has not been doing well, and this is another move by the State to try and improve it.
For years, insurers have charged rates that are actually too low for the amount of risk involved, leaving many drivers paying for coverage that may not guarantee payment when needed. This has also driven out virtually all competition. Have you ever wondered why there are so few insurance options for FHV drivers or why none of the big players (Geico, Allstate, Progressive, etc.) have gotten into this sector?
The bad news is that this means rates are going to go up. However, the DFS’s stated game plan is to have small incremental increases until FHV insurers have reached a true market rate. This will be an important issue to continue monitoring.
As I wrap up, I also want to mention that The Black Car Fund was once again happy to be a sponsor for the Independent Drivers Guild’s Annual Driver Appreciation Day BBQ! This event gets bigger every year, and I was blown away by how many drivers were in attendance. Thank you to everyone who came out and had a chance to speak with the team that runs our Drivers Benefits program!
Finally, I want to remind you that our next BCF Resource Fair is happening at our Driver Education Center in Long Island City on Monday, August 25th, from 10:00 AM to 3:00 PM. We’d love for you to join us again for a full day of valuable resources and information from The Black Car Fund, Drivers Benefits, and our trusted partners.
As always, we’ll have light refreshments, giveaways, and free raffles with great prizes such as gift cards and dash cams! To keep things running smoothly, the fair will be split into two identical sessions (morning and afternoon), just like in previous years. No matter which session you attend, you’ll get access to the same information and the same chance to win prizes. Plus, the first 20 drivers to arrive at each session will receive a special BCF door prize.
Space is limited, so don’t wait, RSVP today! I look forward to seeing you there.
Until next time!
