A new study authored by Matthew W Daus, Esq., Transportation Technology Chair at the University Transportation Research Center at the City College of New York (UTRC), reveals the growing threat of unlicensed and illegal ground transportation operators in the New York/New Jersey area. The study – created in collaboration with the Chauffeured Transportation Association of New Jersey (CTANJ) and the Black Car Assistance Corporation (BCAC) – is titledAddressing Unlicensed and Illegal Ride Hailing in the NY/NJ Metro Region. It identifies the risks posed by unauthorized taxis, limos and off-platform rideshare drivers – and the regulatory gaps they exploit and the enforcement challenges confronting authorities.
“These rogue drivers operate without proper licensing, insurance, background checks, or drug testing, putting passengers and the public at serious risk,” stated CTANJ President Mike Rose.
“On behalf of the BCAC, I would also like to thank CTANJ for partnering with our organization to provide factual investigatory information from both of our groups that provided the proof that offline and highly organized tech-based unlicensed activity is taking place on WhatsApp and other platforms,” added Diana Clemente, President of the BCAC. “This report makes it clear that the NYC Taxi & Limousine Commission has the legal authority and the operational resources to stop this behavior.”
Aimed at policymakers, regulators, law enforcement and industry stakeholders, the report draws on legal analysis, field investigations and case studies to highlight how these drivers evade oversight and undermine public safety and legitimate businesses. Read the full report at: https://www.utrc2.org/publications/addressing-unlicensed-illegal-ride-hailing-nynj-metro-region.
The report provided the following strategies for cracking down on illegal for-hire activity, safeguarding passengers and leveling the playing field for licensed drivers.
- Expand the powers of regulatory and enforcement agencies to issue civil fines, suspend or revoke licenses and impound unlicensed vehicles. Enact laws to criminalize driver impersonation, misuse of rideshare decals and unauthorized operations at transit hubs.
- Increase targeted enforcement at high-risk locations – airports, stadiums and nightlife areas – especially during peak periods.
- Prohibit the promotion of unlicensed for-hire services through websites, apps and social media platforms.
- Enforce against licensed drivers accepting trips through WhatsApp or other unlicensed groups by requiring electronic trip record checks, issuing solicitation and non-cooperation summonses, and using repeat-offender provisions to suspend or revoke licenses, while also pursuing penalties against unlicensed base operators.
- Direct taxi and limousine regulators and port authorities to allocate sufficient resources toward detecting and prosecuting illegal activities.
- Implement geofencing requirements, automated license plate readers and mobile reporting tools to identify unlicensed drivers at high-risk locations.
- Partner with transportation network companies to flag off-app solicitations and issue in-app safety alerts. Develop tools for the public to report illegal activity in real time.
- Launch public awareness campaigns to warn riders about the risks of unlicensed drivers. Train frontline workers at airports, hotels and venues to help riders identify and connect with legal transportation.
- Regulatory and enforcement agencies should collaborate with industry associations such as the CTANJ and BCAC to enhance intelligence gathering, share best practices and support compliant drivers and operations.
- Reform licensing requirements to reduce unnecessary costs and red tape that drive for-hire drivers underground.
“Every illegal trip not only takes business away from licensed, law-abiding drivers but also undermines the system that funds critical protections like workers’ compensation and The Black Car Fund’s Drivers Benefits Program” explained Ira Goldstein, Executive Director of the Black Car Fund. “Even more troubling, drivers who operate through unlicensed or unaccountable bases will not be covered by The Fund if they’re injured on the job.”
