The New York City Council approved a bill in December, permitting video advertising in the back of TLC-licensed for-hire vehicles (FHV’s), to increase drivers’ incomes. The bill, Intro 1139-A, allows FHV drivers to display video ads on tablets in the back of their vehicle, and stipulates they get 25% of the revenue from each ad played. Passengers can still turn off the tablet and control its volume.
The bill’s main sponsor, Bronx Democrat Amanda Farías says ad revenue is not the only aspect of the bill she hopes will put more money in drivers’ pockets. The screens can also be used to remind riders to leave a tip. FHV drivers reportedly earn 13% more tips on average with ad screen reminders.
“Our rideshare drivers help get hundreds of thousands of New Yorkers where they need to go every single day,” said NYC Council Majority Whip Selvena N. Brooks-Powers, Chair of the Committee on Transportation and Infrastructure. “TLC drivers provide our city an essential service, and they deserve every opportunity to earn a livable wage.”
The new legislation is set to take effect 90 days after it becomes law. The TLC may then begin the rulemaking process necessary to carry out the law’s provisions. Once TLC issues draft rules, it takes a minimum of 60 days for the rules to take effect.
“This opportunity could put thousands of extra dollars in drivers’ pockets next year,” said Brendan Sexton, president of the Independent Drivers Guild. “The ability for drivers, specifically that service our outer borough communities, to have advertisements in their cars comes at an urgent moment – with more fees incoming to our drivers in communities like District 18 due to rising gas prices, calls to electrify, congestion pricing and the upcoming green rides initiative.”
The Bill Requires the following:
- Companies that provide “interior advertising tablets” will need a TLC license. The license fee is capped at $500 per year.
- The bill is not limited to advertising. The law requires a permit to install any electronic device capable of showing audio-visual content, including but not limited to ads, interactive content, informative graphics, music, and videos.
- Individual drivers will not need a permit to install a tablet in their vehicle.
- Drivers get 25% of the revenue generated by the tablet in their vehicle.
- The TLC will be able to adjust the minimum compensation standard after a year, if deemed necessary.
- Drivers cannot be required to have a tablet in their vehicle or be required to operate a vehicle with a tablet.
- TLC-regulated services are prohibited from discriminating against drivers based on whether they choose to operate a vehicle with a tablet or based on the tablet’s brand or affiliation. Discrimination includes “deactivating the driver, refusing to lease a for-hire vehicle to a driver, imposing an additional charge for leasing a vehicle without an approved electronic tablet, reducing the compensation provided to the driver, either directly or indirectly through manipulating the number or type of rides assigned to the driver, or disciplinary action.”
- The device must be capable of being turned on and off and muted.
Despite the money drivers could earn, there are continuing questions over whether the video screens will be a welcome addition for passengers. The Taxi & Limousine Commission’s Taxi TV program was showered with complaints from riders and drivers, saying the ads were repetitive and annoying, so it was scrapped in 2015.
