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New Orleans Paves Way for Uber, Lyft to Operate

Getting around The Big Easy just got easier.

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In New Orleans on Bourbon Street, a jazz band plays melodies for tourists and locals passing by on a hot summer evening.
Getting around The Big Easy just got easier. On Wednesday, April 15, New Orleans officials announced the adoption of an ordinance that paves the way for companies like Uber and Lyft to begin operations on the city.

According to a city press release, the new ordinance creates definitions and regulations for the operations of transportation network companies (TNC) and TNC for-hire vehicles.

“I am grateful we were able to come together and craft this ordinance in a way that gives residents and visitors more choices, increases accessibility to more areas of our city and ensures the public’s safety,” said Mayor Mitch Landrieu in a statement. “We will continue to work with the City Council and the various parties involved to implement this ordinance as fairly and effectively as possible, and we will continue to work with all for-hire industry stakeholders to continue to improve equity, enforcement and customer service among all for-hire industry sectors.”

Ride-hailing or ride-booking – often erroneously called ride-sharing – companies like Uber have swiftly upended the taxi industry in many cities. Other cities, though, have been slower to incorporate the new industry that threatens to topple traditional cab services. In New Orleans, the change has taken several years to fully implement.

According to the city press release, taxi reforms passed in 2012 were aimed at improving standards, emissions, payment options and safety. In 2014, the city permitted certain car-hiring services to use app-based technology.

The ordinance signed this week defines a “TNC as a person, organization or corporation that connects passengers with drivers using their personal vehicles for the purposes of for-hire vehicle transportation through a TNC digital network. Drivers are not required to be employees of the TNC. Services commence when a driver logs in to the TNC digital application and conclude when the driver logs out,” according to the city.

The ordinance also establishes a number of requirements designed to stem certain safety and liability issues that have arisen in other cities where ride-booking services are already commonplace.

TNCs operating in New Orleans must, for example, provide a customer service telephone number and/or email address; a zero tolerance policy for driver drug and alcohol use; a reporting mechanism for drivers suspected of zero tolerance policy violations; and a rate calculation formula for customers.

In addition, TNC drivers must own or lease their car; have an insurance policy that covers the vehicle; have the vehicle inspected by the state annually; and be able to show that the car being used for the service is less than seven years old.

"Ridesharing is an economic benefit and much-needed transportation option for the citizens of New Orleans,” Councilmember and Chairman of the Transportation and Airport Committee Jared Brossett said in a statement. “We are a city that embraces technology and I look forward to rideshare companies operating here in our city."