By Lea Kahn and Philip Sean Curran, Staff Writers
WEST WINDSOR — Car service Uber is eating into the business of other cab companies in the area, something that cabbies are upset about and want local officials to address.
Township Council is considering holding a “work session” meeting with commercial taxi drivers to explore their concerns about Uber and Lyft, the ride-sharing services that connect freelance drivers with people who need a ride.
Several taxicab drivers approached Township Council last week to express their concerns about Uber, whose drivers have been making arrangements to pick up people at the Princeton Junction Train Station, to the dismay of licensed taxicab drivers.
“We’re struggling out there,” said Daniel Palumbo, who owns AAA Taxi and is a board member of the West Windsor Taxi Association.
Mr. Palumbo told Township Council that 72 percent of Uber and Lyft drivers do not know how much liability insurance they carry, and that 92 percent of those drivers have not told their insurance carriers that they are engaged in this business. Very few insurance companies have established policies to cover their clients, he said.
One Trenton lawmaker said Tuesday that he had co-sponsored legislation that would address some of those concerns.
“We should welcome and celebrate an innovation like Uber, especially in a sprawl state like New Jersey,” state Assemblyman Jack M. Ciattarelli (R-16) said.
“At the same time, we need to ensure a fair and level playing field for all businesses,” Mr. Ciattarelli said. “That’s why you’re seeing bills in state legislatures across the country, including New Jersey, where I’ve co-sponsored (legislation that) addresses insurance and safety requirements for mobile app taxi services.”
“Uber has reacted to various legislative proposals by making changes to their insurance and driver background check policies. We’ll know very soon if the marketplace has corrected itself or if pending legislation still needs to be enacted,” he said.
For its part, Uber said this week that there are more 13,000 state residents who drive for the company, and that they have to go through a background check. In addition, every ride is insured with $1.5 million in liability insurance, the company said.
“New Jerseyans are choosing Uber because we’re connecting riders to safe, reliable transportation and offering drivers a flexible income opportunity that lets them work when and where they want,” said Uber New Jersey spokesman Craig Ewer by email Wednesday.
Mr. Palumbo also pointed out potential safety and security issues that passengers may face when they use a smartphone “app” to contact a Uber or Lyft driver.
While commercial taxicab drivers must undergo background checks and pay fees, Uber or Lyft drivers are not subject to the same rules and regulations as taxicab drivers, he said.
“For me, for the last 27 years, we have abided by rules and regulations,” Mr. Palumbo said. Without regulations, New Jersey has effectively created a business — Uber and Lyft drivers — that operates without any license, he said.
Another taxicab driver supported Mr. Palumbo, and said that he would like to see the Uber drivers abide by the same restrictions as commercial taxicab drivers. Passengers do not know who is driving them when they get into a Uber car, and it is likely that the car owner’s insurance company may not provide coverage if there were to be an accident, he said.
Woodly Lapointe, who also drives a taxi, said that every year, he receives a “stack of papers” that must be filled out. While he has to fill out forms for fingerprints and also pay a fee, a neighbor has said that he might start driver for Uber — without having to fill out the forms, he said.
There are 34 taxicab licenses issued by West Windsor Township, and would-be drivers have waited for years to be issued a license, Mr. Lapointe said. They have to buy a license, but Uber drivers do not have to do so, he said.
Council President Bryan Maher held out the possibility of meeting with the taxicab drivers at a public meeting. Councilman Peter Mendonez Jr. said an effort should be made to bring in Uber representatives, too.
West Windsor is not unique in facing this problem. Cab drivers in nearby Princeton went before the council there in late October to express their concerns.
Princeton Councilwoman Jenny Crumiller said then that Uber is “already illegal under the state regulations.”
“So anybody who takes an Uber should understand that they’re taking an illegal car,” she said.
