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Ridesharing bills could pave the way for transformational changes

in Statewide/Top Headlines by

On the same day an Uber- and Lyft-friendly ridesharing bill passed its first committee stop in the Florida House, state Sen. Jeff Brandes was presenting his vision of where he believes the transportation industry is headed.

“We’re in a generational shift from the horse and buggy to the Model-T,” Brandes said Wednesday evening at the James Madison Institute in Tallahassee.

The St. Petersburg Republican was the main presenter at a public event focusing on emerging transportation technologies. He’s also sponsoring legislation similar to the House ridesharing bill.

If successful, the measures would create uniform insurance and background check requirements for participating drivers, and prevent local governments from issuing conflicting regulations.

The reforms could be a first-step in a much larger sequence of changes.

“The industry is evolving,” Brandes said. “Auto manufacturers, tech companies and all kinds of groups are working hard to get into this space.”

As with carpooling, ridesharing allows for multiple passengers to share vehicles during their commutes – often at the touch of a smartphone app.

Cutting transportation costs, such as vehicle maintenance and gasoline, and reducing traffic congestion and vehicle emissions are just a few benefits.

The higher the ride-sharing occupancy rate, and the more people are allowed to use the services, the less cars would be needed – or so the logic goes.

“I think if the cost per mile continues to go down, and if insurance is a bundled service, it’s going to be pretty compelling for some people to use shared cars as their second cars,” Brandes told Watchdog.org in an interview.

When considering shared driverless cars and electric ridesharing vehicles, the potential for change is even more dramatic.

Brandes explained: Electric vehicle operators won’t pay gas taxes. Fewer vehicles mean fewer title fees for the state. Local governments could lose revenue from fewer traffic citations. Parking revenues would decrease, as would demand for urban parking garages.

“This has the potential to change cities, the electric grid, the insurance industry and even health care,” Brandes said, referring to the probability of fewer car accidents.

“It’s all of these different things and it’s going to begin happening within the next 10 to 20 years,” he said. “So how do we get our minds around this?”

Large financial institutions are already engaged.

“The market for private automobile ownership is likely headed for disruption,” predicts Morgan Stanley. A video presentation by Adam Jonas, head of global auto research for Morgan Stanley, provided context for Brandes’ remarks.

In part, the vision was described as an impending evolution in mass public transit that doesn’t require massive taxpayer-funded public transportation projects.

“When you know something big is going to happen but you haven’t begun to feel the effects yet, the focus should be on maximizing our options,” Brandes said. “We’re in a fascinating time.”

A bipartisan group of House lawmakers approved last week’s ridesharing bill, 14-1. The measure faces another House committee and floor action before heading to the Senate, where previous attempts at preempting local government regulations have failed.

New Senate President Joe Negron, R-Stuart, is expected to be more receptive this year.

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