Overall, there was a lot of support for the New York City Taxi & Limousine Commission’s (TLC’s) proposed rules for Interior Advertising in For-Hire Vehicles at the agency’s August 14 hearing. For-hire vehicle (FHV) drivers, unsurprisingly, welcome the potential for an additional revenue stream – but there were also plenty of valid concerns and criticisms from the people who spoke at the hearing.
NYC Council Majority Leader Amanda Farias, who sponsored the initial legislation, was adamantly against the requirement to have 15% of the content on the devices controlled by the TLC and called the section of the rule allowing TLC info to play at the start of each ride overreach. She expressed concerns that both could reduce driver earnings, adding that these items, in particular, seemed to stray from the intent of the bill, which became law about eight months ago.
TLC Chair David Do acknowledged that there is still work to be done, and said he looks forward to working further with her to achieve the intent of the bill.
Farias was also among those who wanted to allow tipping through the devices, a point brought up by several members of the Independent Drivers Guild (IDG). Guild members also expressed an interest in allowing two tablets in each vehicle to increase revenue, which the rules do not currently allow.
Andrew Greenblatt, executive director of the IDG Benefits Fund, complimented the new regulations but pointed out that tipping through the devices is allowed in other cities, and questioned why that would not be the case with the rules as they are currently written. He also brought up the idea of including bio information about the drivers to help boost tips.
Brad Sayler, a representative from Octopus / T-Mobile – a company that seeks to provide tablets to NYC FHV drivers – responded that it is impractical to facilitate tipping on the tablets without a direct connection to a driver’s base. Sayer said his company helps drivers generate revenue via passenger interactions and ads, but that tipping should be done through the base’s app, where the ride was booked.
Sayler added that Octopus / T-Mobile has provided ad revenue for many thousands of drivers, a contention supported by a number of drivers who spoke at the hearing about the benefits of using tablets provided by the company.
Jeremy Moskowitz, executive vice president of Voyager Global Mobility, a company that “provides professionally managed vehicles to drivers and software platforms” for the industry, said that he was excited by the prospect of allowing in-vehicle advertising for his company’s vehicles in NYC, but was concerned that the rules, in their current form, simultaneously felt like overregulation and were too vague in certain areas.
In the TLC’s Statement of Basis and Purpose (which can be found at https://www.nyc.gov/assets/tlc/downloads/pdf/proposed_rule_for_interior_advertising_fhv.pdf), the agency stated that, “This initiative will permit qualified vendors to offer information, news and entertainment for passengers via tablets installed in for-hire-vehicles while enabling drivers to be paid a share of the revenue.”
An edited summary of the proposed rules would establish the following:
- A formal procedure for the licensing and supervision of businesses providing approved electronic tablets and software for interior advertising in FHVs.
- A framework to access and assess the gross revenue generated by each provider – giving the TLC data to determine compensation, in case it needs to be adjusted in the future.
- Rules and penalties to enforce against any negative consequences drivers may face from their base for choosing not to display interior advertisements.
- Technical requirements for approved tablets and software that ensure content standards, safety features, privacy protection, and security so that driver and passenger data are safeguarded by limiting functionality, including prohibiting the capturing of personal identifying information, credit card transactions, internet access, recording and camera capabilities, screen sharing, and wireless transmissions.
- Requirements for passenger controls to ensure they can turn off or mute the screen before displaying any content.
The rule also states that FHV drivers must earn at least 25% of gross ad revenue generated from ad tablets, they must be paid on a weekly basis, and leasing companies and bases will not be allowed to earn recurring revenue from the tablets.
It’s clear there is still work to be done to get these rules finalized and put some extra cash in the pockets of drivers. Despite obstacles and concerns voiced at the Aug. 14 hearing, TLC Commissioner Do promised “to go back to the drawing board” before finalizing the rules. The TLC also stated that it plans to launch a timeline for the rollout once it finalizes the regulations later this year.
