Las Vegas, NV - October 24, 2014
of Business and Industry transportation officials are cautioning the riding
public about potential pitfalls of utilizing unregulated transportation
services. Existing statutes and regulations include provisions to ensure public
safety which require measures including criminal background checks, mandatory
insurance requirements, and comprehensive mechanical safety inspections along
with publicly approved non-predatory fares.
should be aware of the following before engaging the services of an unlicensed
for-hire transportation provider, including unregulated transportation
The company may not have performed
comprehensive criminal background and driver history checks along with medical
clearance and permit testing. The company may not have done mandatory or
random drug testing of its drivers.
Fares are not regulated and, therefore,
can be subject to change at any time, at the company’s discretion.
Drivers and vehicles may be uninsured
which can put passengers and accident victims at financial risk should an
accident and subsequent injuries occur. The Nevada Division of Insurance
recommends passengers who do engage the service of a transportation technology
company ask to see proof of a commercial insurance policy before accepting a
Any person providing for-hire
transportation is required to obtain a state business license in addition to
business licenses in the local jurisdictions where they operate.
Consumers have no regulatory avenue to
file a complaint for resolution and may be required to file civil action or be
subjected to costly arbitration proceedings.
Every vehicle in the fleets of a
licensed transportation provider is subject to safety inspection and
certification. Mandatory maintenance logs must be kept and available for
review by authorities. The same level of assurance cannot be provided by
companies that are not subject to the same level of regulation.
Transportation technology companies may
require consumers to agree to lengthy terms and conditions prior to engaging
their service which may include signing a waiver to release the company from
all liability claims, causes of action or damages resulting in the use of the app
or the conduct of the driver.
Under the existing regulatory
framework, transportation enforcement officials are required by law to impound
the vehicle of any unlicensed for-hire transportation provider.
Passengers are subject to the potential inconvenience that may result in the
disruption of service (NRS 706.476 and 706.88395).
Nevada regulated carriers are required to prominently display a state issued
medallion or CPCN number on each vehicle.
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