Important information for Nevada consumers about unlicensed transportation providers

Las Vegas, NV - October 24, 2014

Department 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.

Consumers should be aware of the following before engaging the services of an unlicensed for-hire transportation provider, including unregulated transportation technology companies:

·         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 ride.

·         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).

·         All Nevada regulated carriers are required to prominently display a state issued medallion or CPCN number on each vehicle.

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Teri Williams
Public Information Officer