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  • In Legal Air Charter, there are No Inefficiencies

    Given the rise of Uber and Lyft in the ground-based transportation market, it is no surprise that eager software developers and marketing folks with deep pockets filled with venture capital would set their sights on the air transportation market.

    Based on the false premise of “inefficiency in the marketplace,” these digital-age air charter brokers, some with little understanding of the intricacies of Commercial Aviation Operations and Federal Aviation Regulations, promise to decrease these inefficiencies while lowering the cost of “private” air charter. A few of these organizations have already butted heads (and lost) with FAA while some are battling their own disenchanted Clients as they re-organize their business model to remain afloat.

    What is Air Charter?

    The offering of an entire airplane with a crew for transportation from one place to another at a date and time of your choosing is, by definition, “Air Charter.” In the industry, we call this arrangement, “on-demand air charter” and it is often also called private air charter.

    You, as the Client, determine where you want to go and when. The Air Charter Operator lets you know the cost, and the two of you work out the financial terms. When you have reached an agreement, you have chartered the airplane. The charter operator will not offer any seats on your private charter flight to anyone else because the flight is “private” for you and your group.

    There are several key distinctions between flying private charter, flying on the airlines and flying around on a friend’s airplane.

    • You are not buying a seat. On the airlines, you buy a seat. When you charter a plane, you purchase the entire airplane for the date, time and route you determined. No one else other than you and your party will occupy that flight. Because there is no advertising to the public of seats available, this is a private charter flight. Without a Public Charter Certificate (see below), “holding out” to the public of the availability of these seats would not be legal.
    • You aren’t flying around with a Private Pilot. The Pilot responsible for your flight has, at a minimum, a Commercial Pilot Certificate. Private Pilots are not allowed to engage in transportation for compensation or hire.
    • You aren’t flying around with just a Commercial Pilot either. On both the airlines and in legal air charter, the Pilot responsible for your flight has subjected themselves to additional training and oversight. They have taken additional, required exams both oral and practical for each airplane they will fly for you. The exams, we call them “checkrides,” occur, at a minimum, every twelve months. And, each checkride is specific to each Air Carrier. If a Pilot wants to work for two Air Charter Operators, they must qualify separately with each On-Demand Charter Operator, by taking two different checkrides.
    • Pilots in private airplanes are not tested for drugs or alcohol. On-demand charter pilots and airline pilots are routinely and randomly tested for drugs and alcohol. At any time, while just before, just after and on duty, they can be randomly tested. Not so with any other pilot.

    But I Bought a Seat on a Private Plane and I Didn’t Have to Charter the Whole Plane!

    The Department of Transportation protects the flying public with regulations that Air Carriers – Airlines and Private Charter Operators – are required to follow.

    Under a specific set of circumstances, an on-demand air charter operator can advertise a schedule and sell by-the seat on a limited basis with the following restrictions:

    • Less than 5 round trips per week on at least one route between two or more points according to published flight schedules,
    • No turbo-jet airplanes can be used, and
    • Airplanes are limited to a maximum passenger seating configuration of 9 seats or less.

    This is one legal way you can purchase a seat on a charter airplane. There is, however, another way to buy a seat on a chartered flight and herein lies the confusion: Public Charter.

    What is Public Charter?

    First and foremost, the phrase “Public Charter” should never be interpreted to mean “Direct Air Carrier” – or even “air charter operator.”

    A Public Charter is an authorization from the Department of Transportation to sell air transportation. It is not an authorization to conduct or operate that air transportation. Holding a Public Charter allows the ability to advertise and sell transportation on a per-seat basis; holding an air carrier certificate enables the charter company to both sell transportation and conduct or operate those flights.

    A Public Charter Operator has a right to sell seats on an airplane that they chartered because they applied for and received authority to do so. They had to specify, in advance – before they received their Public Charter – the route and the Air Carrier they intended to work with as well as the number of flights they intended to make.

    There are no “pop-up” or empty leg flights on a Public Charter because all of the flights are known in advance.

    A applicant for a Public Charter must also put money in escrow or hold a security agreement to protect both you, the flying public and the air carrier. Should either the Public Charter operator or the Air Carrier not perform according to its obligations, you are protected from losing your money. That’s the deal they made with the DOT.

    It should be clear, then, that a company cannot, on an ad hoc basis, use its Public Charter to minimize any inefficiencies it perceives in air charter by selling seats on empty legs.

    What it can do is advertise and sell a seat on a flight it had already contracted for. So, if it had pre-arranged a flight to Whiteplains, New York from Opa Locka, Florida, it could advertise and sell seats on that “charter” flight. Thus if you purchased a seat on “a private jet” and you did not have to charter the entire airplane, you may have purchased from a company holding a Public Charter.

    This is the only legal way a company can sell “by-the-seat” without operating as a Scheduled Airline.

    Again, this type of airplane seat Seller is not a Direct Air Carrier – they are not an Airline and they are not an On-Demand Private Air Charter Operator. They are a Seller.

    So, a Public Charter Operator:

    1. Sells one-way and/or roundtrip charter flights by-the-seat and anyone can get on these flight when they purchase a seat,
    2. Is not the operator of those flights because they do not have an Air Carrier Certificate and,
    3. Cannot advertise seats on flights on any charters outside of the scope of their Public Charter application that was approved by DOT.

    Point 3 is where many Air Charter Brokers with Apps that run on mobile phones get into trouble – and where Air Carriers without DOT approval cross the line.

    To sell by the seat you either need Air Carrier Operating Specifications or authority from DOT under Part 380.

    But I Heard That a Lot of Planes Fly Empty and that This is Inefficient

    That seems to be the battle-cry of many air charter brokers and operators… If only we could sell the empty legs…

    And, logistically, who wouldn’t want the nirvana of moving metal that does work? It somehow feels efficient if there are passengers or some cargo on board.

    The on-demand charter industry exists because someone wants to go somewhere on their own time, not the airline’s time and not the airlines’ route. When Time is Money, on-demand air charter is there to fill that void. And there are no inefficiencies when the Buyer agrees to Buy and the Seller agrees to Sell.

    The idea of inefficiencies stems from a perspective of scarcity, not utility. Utility is met when the passenger arrives at their chosen destination. There is no inefficiency here.

    But the airplane flies empty back to its home base, isn’t that inefficient? No. For the person who chartered the airplane, their need was met when they arrived at their destination. For the charter operator, their need was met when the Client utilized their business and paid the operator to meet their needs.

    When concerned with inefficiencies, one should fly the airlines: They sell specific routes at specific times, by the seat, and they advertise heavily to fill each seat. They are Masters of limiting inefficiencies because inefficiency costs money.

    BUT THE FLIES EMPTY AND THAT SEEMS INEFFICIENT!

    So you want additional utility beyond what the original charter agreement specified? We’re back to the utopian desire to fill the empty leg seats. This leads us circularly back to either, operating on a schedule so that folks know when the plane leaves one destination to go to another after dropping off a private charter Client -or- holding a Public Charter certificate from DOT and selling by the seat (again, though, this will involve a schedule). By definition, on-demand air charter does not operate on a schedule more than four times a week between two cities. Doing so would require additional operating authority.

    And therein lies the problem with Mobile Apps that allow you to purchase by-the-seat or “share” a charter. Not every company behind those apps holds the authority required to sell by the seat as a Public Charter or to operate an airplane on-demand or on a schedule as an Air Carrier.

    In legal Air Charter, there are no inefficiencies.

    Resources and References
    Trying To Make Sense Of The Troubles At JetSmarter by Doug Gollan
    FAA Part 135 Air Charter Certification General Information
    Notice to Colleges and Universities OrganizingFlights to College Bowl Games and other Special Events
    The Role Of Air Charters Brokers In Arranging Air Transportation

  • Additional Aircraft Available for Air Charter to The Bahamas

    We are pleased to offer this well-appointed Beechcraft Baron 58 for charter to The Bahamas and destinations throughout the Southeastern United States.

    Beechcraft Baron Air Charter Details

    Your private flight can comfortably accommodate up to 5. Carry-on luggage can be stowed in the nose compartment. The Baron 58 offers easy ingress and egress for 4 from a separate door you step through from the tarmac.

    beechcraft baron 58 air charter skymax

    The interior of this aircraft was designed with you in mind. With a roomy cabin, light decor and comfortable seating, you’ll enjoy flying with your family, friends and business associates.

    baron 58 skymax charter aircraft interior

    Please call us for information about your next destination or charter flight. Tell us where you would like to travel and we’ll work for you.

  • History of Air Taxi in the USA

    what is air taxi vintage poster

    Although some folks say that Air Taxi is a “revolutionary new way to travel,” people have been chartering airplanes, flying “on-demand” and using the term “air taxi” for decades – at least as far back as the early 1930’s.

    What is Air Taxi Service

    In the past, large aircraft served airports in major metropolitan, leaving a vacuum of service to cities and rural communities around the United States. As more and more air fields were constructed, smaller aircraft began air service between the larger metropolitan areas and these smaller communities.

    This blend of air transportation availability continues today for many reasons:

    • Large Boeing and AirBus planes are designed to carry hundreds of passengers. These aircraft require long runways and therefor, cannot operate into all of the airports in the United States.
    • Many cities cannot offer a viable market to the airlines. There simply aren’t enough travelers on a daily basis to have a route.
    • The Air Taxi industry provides air transportation to all airports in the USA using smaller aircraft capable of economically flying fewer passengers and landing and taking off from shorter runways.

    Historical Air Taxi Industry Movers and Shakers

    the travelair airplane made by cessna and stearman

    “Stearman” and “Cessna” are two familiar names in aviation. Most people associate these names with images of airplanes and rightly so. These are but two names of very prominent early airplane designers.

    For example, the Travel Air, designed by Lloyd Stearman and Clyde Cessna, first flew in 1926. 1926! Soon after, it was placed in commercial service as an air taxi plane by National Air Transport and Royal Airways.

    pauline gower starts air taxi service

    And, just after Pauline Gower learned to fly in 1929, she turned her passion into a thriving business.

    “She established an air taxi service that operated until the outbreak of the war, by which time her concern had flown 30,000 passengers” – The Milwaukee Journal – Aug 22, 1943.”

    Organizing the Air Taxi Industry

    The air taxi industry organized itself with the formation of the National Air Taxi Association in the early 1950’s while the Civil Aeronautics Board, a government agency, sought to formally recognize air taxi operators as a new class of air carrier.

    “The CAB proposes to recognize a new class of air carrier – the air taxi men [sic] who link airline points with communities lacking airline service.” – The Pittsburgh Post-Gazette – February, 1951.. February, 1951.

    Here in South Florida, the Air Taxi Industry was going strong in the 1960’s: Demands on Area Air Taxi Service Increases – The Palm Beach Post – Dec 31, 1967.

    Because the air service is so similar to ground-based taxi cab services that provide on-demand local or regional transportation, the phrase “air taxi” was coined.

    Air Taxi: Not a New Concept in Aviation or Travel

    Clearly, air taxi service is not a new concept in aviation, travel or transportation. What has changed, or perhaps, what is new, is the availability of information about air taxi service providers. Computers and the World Wide Web have marshaled in this change. But Air Taxi itself, as an industry, is not new.

    Air Taxi Service Then and Now

    Air Taxi is an on-demand air transportation service provided by federally certificated operators who will, within the scope of their Operations Specifications, take you wherever you want to go, when you want to go.

    The Air Taxi Difference

    Airlines operate out of large airports, on a schedule. They tell you where they are going and what time they are departing. You travel on their schedule.

    Air taxi is the business of renting an entire aircraft to travel to a destination you choose as opposed to buying an individual seat on a plane scheduled to fly between cities the airline chooses.

    Air Taxis operate out of all airports, on your schedule to the destination you choose

    Air Taxi operators fly a variety of airplanes, with seats for three, five, eight and more passengers. We fly within an area suited for the operational characteristics of our airplanes. And all of us fly airplanes better-suited for flights to any destination with an airport, including the major airports.

    We welcome your comments and questions about the Air Taxi industry and flying, in general. Thank you for reading.

  • Hello 2016: New Air Charter Service Options

    skymax air cargo and air charter piper navajo

    Out with the old and in with the new!

    Piper Navajo for Air Cargo and Passenger Air Charter Service

    We are pleased to offer you this Piper Navajo available for air charter travel to The Bahamas and throughout Florida. Fly privately in this comfortable, commuter-configured aircraft with seven passenger seats and air conditioning.

    Traveling for business? Bring your office with you. We fly medical lab personnel, architects, attorneys, builders, real estate developers and high-profile public officials. Call Skymax for your next business air charter.

    Cargo Charter Service

    This versatile airplane can also be configured for air cargo service. We are available for your time-sensitive last-minute air cargo charter flights. Give us a call when you need to move aircraft parts, freight, stranded baggage and lost luggage.

    Seafood Purveyors and Chefs: We have limited, short-term cold storage available for your perishables when you ship your air cargo with us.

  • Hello November

    For this Florida gal, anything north of Palm Beach County is cold. But dropping temperatures are no match for the beauty of Fall Colors. Hello November from Willoughby, Ohio!

    aerial view willoughby ohio

    Fall Colors and Flying the 414

    We’ve had quite an adventure over the past week flying a Cessna 414.

    Our pilot service work took us from Fort Lauderdale, to Marsh Harbour in The Bahamas. From Marsh Harbour, with passengers on board, we hd a beautiful flight to Savannah. Savannah is a great place to stop for fuel and food. You can actually walk from the FBO to the restaurant where a full-spread buffet awaits.

    Bellies and tanks full, we flew to Willoughby, Ohio just east of Cleveland on Lake Erie. The colors of the leaves where astounding from the air. We were treated to no less of a show on the ground during a seven hour drive to Charlotte, NC.

    About the photo: Fall colors nearing the end in Willoughby, Ohio. This was taken just after taking off from Lost Nation Airport.

  • Dream. Fly. Dream.

    There is an Adventurer in all of us.

    We long to travel, to wander. We want to explore.

    Whilst exploring on the ground, I wandered into Karen Reinstatler’s shop, Pink Slip Threads. I love her shop… I find the clothing, costume jewelry and nic-nacs she curates edgy and inspiring… Much like Karen.

    That inspiration led to a bit of Photoshop creativity. If I have to be on the ground and in the office, this is a good way to avoid paperwork.

    For those who dream of flying, this is for you.

     

    Posted by SKYMAX (@fly_skymax) on

    Somedays we #fly… Some days we #dream of #flying, #soaring above the earth majestic #Skymax #learntofly #introductoryflight #FortLauderdale #Pompano #Miami #Florida

  • Where in Florida is…

    Flying around Florida provides many photo opportunities. Usually, aerial photos are my favorite to take and share. But on the ground at airports, there are little treasures that pique a person’s interest. Like this one…

    Following our passengers into the FBO, I almost tripped over this painted homage to University of Florida and The Florida Gators.

    Can you guess where you might find this sidewalk graffiti?

     

    A photo posted by SKYMAX (@fly_skymax) on

    Here are your clues:

    • You can get there by car.
    • Flying an airplane is fast. Chartering an airplane is faster.
    • There is a certain school there with a reptilian mascot and although the Florida Fish and Wildlife Conservation Commission says their habitat stretches north to North Carolina, in fact, they are also found in New Jersey. Word to the wise.
    • You definitely don’t want to drive here from Fort Lauderdale unless you really like driving.
  • Florida Not on the New Year’s Eve Last Minute Deals Search List

    think with google holiday travel search for last minute deals

    In December, while bitter cold settles across the northern half of the USA, it’s nice and toasty here in The Sunshine State.

    And as Christmas passes and New Year’s Eve approaches, online searches for last minute deals on flights and hotels spike according to a recent Think with Google study.

    Last Minute Deals on Holiday Travel

    Think with Google offers insights, trends and research in digital marketing and the study referenced looks at holiday travel.

    The spike in searches for last minute deals in late December is a bit surprising. Why are people searching for travel at the end of the year when, traditionally, this is a very busy time and a time for reflection and renewal? Could this bump in travel searches be explained simply? Afterall, this time of the year is a time of planning, a time of resolution-making.

    Does this spike in searches for last minute travel deals actually result in a spike in travel bookings?

    It is not surprising that these searches are not the peak of searches throughout the year though. That actually occurs near mid-summer when children are not bound to school and families take vacations. But for some reason, there is a significant increase in searches for last minute deals in late December.

    But guess what: Florida destinations are not on the search list. At the end of the year, folks around the country are not searching for last minute deals to destinations in Florida. Instead, they’re looking to go to, among other (cold) places, Las Vegas and New York. That was doubly surprising.

    We, however, are undeterred in our belief that Florida is the travel destination. And you can find, without a lot of searching, last minute deals on flights and hotels right here in The Sunshine State.

    When you subscribe to our Last Minute Deals list below, you won’t have to search for deals on last minute charter flights… We’ll email you.

  • The Case for Lyft and Uber in Broward County

    taxi cab advertising beach airplane rides

    UPDATE
    Date Updated: March 6, 2015
    The Broward County Commission published an Agenda for the March 10, 2015 Commission Meeting that includes a Motion to Request to Set for Public Hearing a proposed ordinance concerning Transportation Network Companies.

    The purpose of the public hearing is to consider enactment of the proposed ordinance.


    ORIGINAL PUBLICATION
    Florida is a travel mecca. From all around the globe, people flock to our warm shores, our inland hiking trails and our famous and infamous cities for entertainment, food, sightseeing and relaxation.

    With so many things to do at places spread far and wide, getting around here in Broward County, is causing a stir.

    Traditionally, residents and visitors alike, if not driving their own vehicles, would call a cab for short hops to the airport or hire a limousine for spectacular nights out on the town. Taxis, limos and buses are staples of our tourism economy, and usually the best option for getting around our urban sprawl. The regulated industry thrives here.

    But newcomers Uber and Lyft — two companies with software applications that pair passengers with drivers and vehicles – have upset the apple cart.

    The charge from local industry, County officials and law enforcement is that Lyft and Uber are operating transportation companies without proper Certificates, Permits and Registrations. Drivers from both Uber and Lyft are subject to driver history and criminal background checks and the cars used to transport passengers with Lyft are inspected by other Lyft drivers. New Lyft drivers must pass a competency ride with a seasoned Lyft driver who makes sure the driver complies with road regulations.

    With both Lyft and Uber, Passengers (“Riders”) provide their telephone number and credit card information prior to requesting a ride and pay a rate set by the company. At the end of the ride, drivers and riders are able to rate each other so there is application-wide feedback.

    What Could Be Wrong with This?

    If you’re a municipality that regulates the transportation-for-hire industry in a place where Tourism is the backbone of your economy or a business owner operating by those regulations… Everything.

    Here in South Florida, the transportation industry caters not only to residents but to visitors from around the country and around the world. Our airplanes, busses, taxi cabs, limousines and passenger vans carry thousands of people each day. In Broward County, like most municipalities around the country, vehicles-for-hire, their drivers and the companies they work for are regulated. And if you, as a driver carrying passengers for money, have not subjected yourself to those regulations through compliance, you are operating illegally.

    Part II Chapter 22-1/2 of the Broward County Code of Ordinances entitled, “Motor Carriers” provides the structure County Administrators, Law Enforcement, Chauffeurs and Transportation Companies refer to in order to understand what is, and what is not, legal.

    Broward County is not unique in its regulation of ground transportation for hire. Most counties in Florida have some administrative code and ordinance in place to evaluate, permit, collect fees and provide for enforcement of taxis and transport vans. But Uber, Lyft and their sub-contracted drivers are not abiding by the Ordinances.

    In a bold move to ensure “transportation network companies” can operate freely in Florida, a few legislators sought to remove the authority of any Florida County to regulate the ground transportation for hire industry. Last March, HB1389 (officially, “Limousines for Hire”, unofficially, “The Uber Bill”) was introduced in the Florida legislature. With language in place to make the State of Florida the regulating body, the Bill died in the second reading last session.

    How to Comply with the Broward County Ordinance

    A cursory reading of the Ordinance makes clear that drivers for hire need a Chauffeur’s Registration. The process, at this point, is easy and not too costly. Obtain and submit a Complete Florida Driver History ($16), pass a 25 question Chauffeur Registration exam and pass a Criminal History Background Check ($64) and the privilege to drive professionally is yours.

    From here, it becomes more complicated, more expensive and less likely the average person will don a chauffeur’s hat and begin using their own vehicle to earn a living.

    When you want to drive a taxi cab or luxury sedan, a Certificate of Pubic Convenience and Necessity is required. Stretch limousines and transport vans with 9+ passenger seats are exempt from this requirement but that doesn’t mean a person can just jump in their stretch limo and go. This is particularly true for Uber and Lyft drivers who operate in a taxi-like environment.

    By regulation, Broward County places a limit on the number of Certificates of Public Convenience and Necessity it will issue based on the type of transportation service offered, the type of vehicle used and the size of the county population.

    The Commission has determined that it shall be in the public interest to, at no time, authorize more than one (1) taxicab vehicle, singly or in combination, per each two thousand (2,000) inhabitants of Broward County nor to authorize more than one (1) luxury sedan per each four thousand five hundred (4,500) inhabitants of Broward County… (Sec. 22½–3. — Certificates of public convenience and necessity; application.)

    All of these certificates have been acquired. There are no more available.

    The only way to obtain one of these certificates is to buy or lease one from a current certificate holder or win the county’s lottery.

    If any were available from Broward County, you would pay $1,000 each. If you choose to enter the lottery when the county decides to hold one, the lottery entry fee is $400. And, if you want to lease a Certificate, the county will collect $250 on top of whatever lease payment you negotiate with the current Certificate holder.

    Permit for this, Permit for That… Permit for Everything

    Permits are issued

    • per vehicle
    • based on the vehicle you operate (taxicab, luxury sedan, luxury limo or transport van)
    • for picking up people at Port Everglades
    • for picking up people at Fort Lauderdale Hollywood International Airport

    The grip on the free market is tightened by these permit fees.

    Since there are no freely available Certificates of Public Convenience and Necessity, Luxury Sedan or Taxicab permits are off the table. Therefore, the only permit available to a legally operating Lyft or Uber driver (and I say that loosely as neither company employs drivers), is a Luxury Limousine and 9+ Transport Van permit.

    How Much is the Luxury Limo / Transport Van Permit?

    The basic permit per vehicle is $300. If you want to pick up passengers, on a pre-arranged basis only (meaning, you cannot sit at the Port or Airport and wait for someone to hail your vehicle), there are additional fees.

    The airport fee per vehicle is $150.

    Pick-up at Port Everglades is a bit more complicated. The money you’ll spend for the privilege of picking up at the Port begins with a $200 Initial Processing Fee.

    This “meta fee,” (my phrase) is imposed by Broward County for Port pick-ups and is, in my opinion, a fee for the convenience of paying another fee: the $250 Annual Port Business Fee.

    At this point, the subsequently required per vehicle Port Everglades Decal fee of $15 pales in comparison.

    The lack of availability of the necessary Certificates of Public Convenience and Necessity required to operate a taxi cab or luxury sedan service coupled with the per vehicle fees associated with operating a stretch limo or passenger van at the Port and the Airport create a protected market for taxis and luxury sedans regardless of what the Customer wants.

    And we aren’t done with the fees to be paid to operate in this space. But first…

    What about The Tourists and Law Enforcement?

    County officials might look at these fees differently when one considers the importance of cruise passengers to our county tourism receipts. We can’t have just anybody in any kind of vehicle picking Visitors up from the Port or our International Airport — even if those Visitors request a ride from Lyft or Uber, see their Driver’s photo and have access to their Driver’s ratings from other Riders.

    The County Ordinance says that’s not legal without meeting certain requirements first.

    Another point to bear in mind is this: the County must be able to enforce its Ordinance which, arguably, is designed to protect the Consumer.

    Law enforcement personnel must be available to protect Consumers by enforcing Chapter 22–1/2. Then, with this enforcement in place, the legal redress to the Consumer that Chapter 22–1/2 provides is accessible through the Courts.

    Does limiting the number of Certificates makes enforcement easier?

    If you are sitting at the Port, waiting to pick someone up, your place in the pecking order is visible: you’ll have the appropriate decals on your car, limo or transport van and, in the case of taxi cabs, an additional tell-tale hat.

    It won’t take an army of police officers to identify bad actors. Conversely, vehicles without the appropriate markers are more easily identified.

    That the County promulgates these laws and their associated fees provides grounds for legal redress of grievances both to wronged passengers, innocent by-standers and insurance companies — in an orderly arena: the Courts. In plain English, consumers, insurance companies and other victims can use the courts to recover damages instead of some form of vigilante justice that doesn’t follow due process.

    Some may argue for no regulation at all. Certainly if we had no regulation, no laws would be broken. But this does not mean we would have no wrong-doing, no injustice or no victims.

    I’ll Bet Other Cab Companies Love this Regulatory Barrier

    Taxi Cab Companies and Luxury Sedan Permit holders surely look at these barriers to entry in a more favorable light. Afterall, no one wants a higher capacity vehicle muscling in on throngs of their Customers.

    But they’re paying their fees and complying with the Ordinance. So, it is easy to understand why people like John Camillo, of Yellow Cab are so upset with Uber and Lyft.

    We’re Not Done Paying Yet… Other Costs and Fees

    Broward County also requires proof of commercial liability insurance which, down here in Worst Driverville, is not cheap. The following minimums are imposed by the county:

    For taxis and luxury sedans: Certificate of auto liability insurance must indicate minimum limits of $125,000/$250,000/$50,000 For each vehicle, submit a certificate with the year, make and Vehicle Identification Number (VIN); for a fleet of vehicles, provide a schedule listing the vehicles with year, make and VIN. (Broward County Taxi Cab Permit Application and Requirements)

    For luxury limousines and transport vans: Certificate of auto liability insurance must have a minimum limit of $500,000 CSL. For each vehicle, submit a certificate with the year, make and Vehicle Identification Number (VIN); for a fleet of vehicles, provide a schedule listing the vehicles with year, make and VIN. Port Everglades Business Permit only: certificate of general liability insurance must have a minimum limit of $500,000 per occurrence and list Broward County Board of County Commissioners as additional insured. (Broward County Luxury (Stretch) Limousine / Transport Van Permit Application)

    Currently, Lyft provides commercial insurance whenever a driver is engaged in transporting a passenger through the Lyft application. I am unaware of Uber’s offering.

    Broward County requires that the County be named on the insurance.

    Whether you operate a taxi, luxury sedan, stretch limo or transport van, the insurance certificate must list, at a minimum, the Broward County Environmental Licensing and Building Permitting Division as a certificate holder.

    I do not believe Lyft or Uber do this, which makes me question the enforceability of an insurance claim against either company.

    Are their underwriters going to protect Broward County from financial liability when a victim sues the County for not protecting her?

    But we still aren’t done forking out money and time to comply with Broward County’s Chapter 22–1/2.

    If you have a business that operates in Broward County, with few exceptions, you owe the county an occupational license tax, now called a Broward County Business Tax Receipt on October 1 of each year.

    Movers and Limo Services pay this fee based on their number of employees. Less than 5? Pay your $33 Broward County Business Tax Receipt and go get your required vehicle inspection.

    I need a Vehicle Inspection?

    All ground transportation vehicles used in passenger transportation-for-hire must pass Broward County’s inspection to receive a permit. The county does not sub-contract this service, so the fact that Lyft Drivers check out other Lyft Driver’s cars will not satisfy local government. But, the County Inspection is a less-than-one-day process if your car, limo or van is fit for service. And it makes sense, particularly when you are accepting compensation to put people, who trust you, in your vehicle.

    But Uber and Lyft are Transportation Network Companies – Not Taxi Services

    Uber and Lyft consider themselves “Transportation Network Companies.” While that label makes sense, I think they can both be described more accurately with pre-internet language.

    Uber and Lyft are, plainly, Dispatchers with a slew of Customers who have raised their hand and said “YES!” to their service.

    I’m not belittling the software or the folks who dreamed of connecting mobile passengers with mobile drivers and vehicles.

    On the contrary, I think it is, and they are, brilliant for solving a distribution problem and an underutilization problem in the marketplace.

    Even more brilliant is the recognition and traction both of these apps have outside of one very small pocket of the country.

    And herein lies the problem local transportation businesses have with Lyft and Uber: these little shits have the market, they want 20% for it and they don’t have any vehicle skin or local skin in the game.

    Download Our App Instead – We’re Legit!

    It has been suggested, in the battle cry against Lyft and Uber, that people should just download the app that is available from one of the local cab companies to request a taxi.

    Look, no one wants to download a local cab company app that can only be used in one place — even if that place is sunny, South Florida. I’m not going to do that. And neither will you.

    I’d rather give up my location and info to an app that has more reach (Customers, Cars and Drivers), that I can use in more than one location and that lets me offer some feedback in a structured way. And therein lies the beauty of Uber and Lyft.

    But They Are Breaking the Law!

    I agree. We need to change the law.

    Drivers with Uber and Lyft, are clearly providing transportation for hire and therefore are clearly subject to Chapter 22–1/2 here in Broward County. Each driver is operating, at a minimum, without government-inspected vehicles and without a Chauffeur’s Registration.

    Oh, But this is not Transportation for Hire

    There are some who will argue that passengers are not charged for transportation, that they simply make a “donation” for the transportation they receive. But that financial transaction walks like a duck and talks like a duck.

    Hiding behind the clearly phony facade of “it’s just a donation; they’re not paying for transportation” does not hold water and makes you look, at best, naive for a variety of reasons.

    The word “donation” still means “freely given,” and, “not required.” I doubt that I would take a person from Point A to Point B expecting to earn revenue but knowing I might or I might not receive a donation.

    And, please, stop saying “we are not a transportation company.”

    To the extent that you hold out to the public the availability of transportation and you accept the money for that transportation, you are in the transportation business.

    Finally, stop pissing people off and alienating decision-makers — putting any needed change at risk.

    Should We Just Ignore Uber and Lyft?

    No. There are good reasons for amending Broward County’s Ordinance and opening up the market. Chicago did it, although they’ve just made another protected class and rasied the barrier to entry for new players by requiring a $10,000 Licensure Fee.

    Here in Broward County, the crux of the issue is that there is a barrier to entry into this industry due to the manner in which the Industry is regulated. Uber and Lyft have exposed those barriers.

    These two platforms have also revealed the fact that there are a number of vehicles that Customers are comfortable riding in. In other words, we do not need to limit our transportation-for-hire operators to Luxury Sedans, Stretch Limousines and 9+ Passenger Transport Vans.

    We should thank Uber and Lyft for uncovering this niche in the market.

    Where Do We Go From Here? What Needs to Change?

    First, the number of Certificates of Public Convenience and Necessity that are available from the county are zero. Without these, there is no new entry into the taxi or luxury sedan market. Fiefdoms develop. Service suffers. The only players who can enter the market are players with deep pockets. There should be no limit to the number of Certificates available or there should be no Certificates.

    Let the market decide with its dollars who provides the best service.

    Second, any 4+ door vehicle manufactured after 2010 that meets certain safety and fuel efficiency requirements should be allowed to participate in our tourism and transportation economy. We should not limit the free market to a Luxury Sedan list, a stretch limo or a 9+ Passenger Van. The Ford Transit Connect and Subaru Forrester are safe, fuel efficient vehicles that should be options for service with or with a Certificate of Public Necessity and Convenience.

    Lyft and Uber have made clear the traveling public’s tolerance of and demand for other types of vehicles. Existing permit holders whose vehicles would not meet the 2010 or newer requirement should be grand-fathered in.

    Third, get rid of the requirement for cab drivers to be on the job for a certificate-holder for 36 months or more before s/he can hold her own certificate. This creates an unfair barrier to entry for people who are clearly qualified, know the roads and want their own shot at The American Dream.

    Fourth, re-vamp the 25 question Chauffeur Registration Exam and the accompanying Study Guide. Kudos to Broward County for making this an audio-visual test; we should keep this. However, a professional driver or Chauffeur here in our vacation wonderland should be intimately familiar with our county and be a competent, safe driver — even if they’re driving part-time. So, add rules of the road and signage questions. Add questions about cities and unincorporated areas of Broward County. Add more questions about the locations of attractions, parks, event venues and hotels throughout the county. Test to a higher standard and our Visitors and Residents will have better experiences in our county.

    Fifth, lower the fees that allow pre-arranged Airport and Port Everglades pick-ups and make sure that Uber and Lyft Customers who request an Uber or Lyft driver are considered “pre-arranged.”

    Sixth, if a Driver is fluent in English and a second language (and I mean fluent — not just a barely passing competency), reward that driver with lower fees. I realize we speak English in this country, but a Driver fluent in English and another language is an asset to our Guests and Residents from other countries.

    Finally, if we are going to create a “Transportation Network Company” definition, we should not limit ourselves or our constrain our workforce to Lyft and Uber.

    However, I do not believe we need this definition if we are willing to redefine “Taxi” and discard the Luxury Sedan definition and requirement. You might argue that we would have a “free-for-all” but I submit that Drivers will flock to Uber, Lyft and any other mobile Dispatching source that can safely provide Customers and Customers will flock to any mobile Dispatching source they trust.

    Moving Forward with Uber and Lyft

    The public good can be better served by opening the doors to better, more efficient competition. Uber and Lyft have identified inefficiencies in the marketplace on both sides of the supply chain.

    There are under-utilized vehicles, under-utilized Drivers and Customers desiring to make safe, trusted use of both — all over the United States. Uber and Lyft bring all three together on their platforms that reduce inefficiencies and encourage good service.

    As a primary vacation destination in the USA, we should embrace the changes needed to satisfy our Visitors and Residents who travel in hired vehicles. And we should provide greater opportunities for local Drivers and Business Owners to thrive, right here in Broward County.

    To do that, our County Commission needs vision and our current regulations need revision.

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