Generally it seems that ridesharing startups have to face regulatory challenges more often than not in many markets. SideCar, a ridesharing startup, that is being assessed by the California Public Utilities Commission is also dealing with regulatory issues and according to a blog post from the company the Philadelphia Parking Authority caught three SideCar drivers and confiscated their vehicles in an “orchestrated sting operation.”
Moreover, the citation from the Philadelphia Parking Authority allegedly mentions SideCar as an “unauthorized service provider.” In response to this citation from PPA, SideCar has said that it is completely incorrect. Furthermore, in reply to Philadelphia Parking Authority’s “sting” operation SideCar has also stated in its blog post that, “As we sort things out with regulators, SideCar will continue to operate in Philadelphia so its citizens can continue to experience the benefits and joys of rideshare.”
“SideCar is a technology platform that enables peer-to-peer ridesharing. Our smartphone app instantly matches people who need a ride with regular, everyday drivers who are willing to give them one. With SideCar, payment is voluntary and you pay what you want. SideCar is safe. We run more checks on our drivers than taxi or limo services. Plus, all matched rides are recorded and GPS tracked for safety.”
Considering the aforementioned facts in mind, it is not tough to imagine that Philadelphia Parking Authority’s operation has left a big question mark over SideCar’s claims regarding safety and if the company fails to resolve the issue soon it can cause concern about its operations in Philadelphia.
Commenting on the SideCar issue, a spokesperson for the Philadelphia Parking Authority, Marty O’Rourke said that the situation is pretty clear because the three drivers did not have any license and were operating as taxis. “They’re passing themselves off as taxis and they’re not,” he said. “It’s clearly not about technology. This is about public safety.”
He also said that, “It was an operation to impound vehicles because they were operating illegally. If we find them out there again, we’ll impound them again.”
It is here the actual contradiction arises because the quote given above clearly states that SideCar is not a taxi service, but it appears that PPA has their doubts.
On the other hand when the CEO of SideCar, Sunil Paul was contacted by TechCrunch to enquire whether their service would start again from Friday, his reply was “Yes that is correct. SideCar is still operational in Philadelphia. During launch mode, SideCar operates on Friday and Saturday nights from 5pm – 3am. We will resume operations this Friday in Philadelphia as usual.”
Source: TechCrunch
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