Along for the Ride: Regulating Transportation Network Companies
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ALONG FOR THE RIDE:
REGULATING TRANSPORTATION NETWORK
COMPANIES
1. INTRODUCTION
On New Year's Eve, 2013, a vehicle struck and killed six-year-old Sofia Liu as she
crossed the street with her family.1 Sofia's mother and five-year-old brother sustained
serious injuries in the incident.2 The family had the right of way to cross the street when
the driver, failing to yield, turned right and struck them.3 The driver of the vehicle, Syed
Muzaffar, drove for Uber.4 Uber is a ridesharing company, also known as a transportation
network company (TNC) under some regulations.5 Though Muzaffar did not have
passengers in his vehicle at the time of the incident, he reportedly had the Uber app open
and active in his vehicle.6 Uber initially refused to cover the accident with its insurance,
arguing that a driver must have passengers in the car in order to qualify for Uber insurance
coverage.7 Sofia's family filed suit against Uber, and those parties reached an undisclosed
settlement in July 2015.8 Had Syed Muzaffar driven for a taxi company at the time of the
accident, the company's insurance would have automatically covered the accident in full,
regardless of the absence of passengers in Muzaffar's vehicle.9
Uber, like other TNCs, connects riders to drivers through... [smartphone] apps.10
TNCs operating throughout the United States include, among others, Uber, Lyfi, and
Sidecar.II When a customer wishes to use a TNC, they download a company's app onto
1. Complaint at 4, Liu v. Uber, No. CGC-14-53-6979 (Cal. Super. Ct. Jan. 27, 2014) [hereinafter Liu
Complaint]; David Streitfeld, Uber and a Child's Death, Bits, N.Y. TIMES (Jan. 27, 2014, 7:00 AM),
http://bits.blogs.nytimes.com/2014/01/27/uber-aid-a-childs-death/?-php true&-type=blogs&_r-0.
2. Liu Complaint, supra note 1, at 4; Alyson Shontell, Uber and UberX Lawsuit, Bus. INSIDER, (Jan. 27,
2014, 4:21 PM), http://www.businessinsider.com/uber-and-uberx-lawsuit-2014-1.
3. Liu Complaint, supra note 1, at 4.
4. Id. at 5; Shontell, supra note 2.
5. The California Public Utilities Commission defines a TNC as an organization whether a corporation,
partnership, sole proprietor, or other form, operating in California that provides prearranged transportation
services for compensation using [an app] to connect passengers with drivers using their personal vehicles.
Decision Adopting Rule and Regulations to Protect Public Safety While Allowing New Entrants to the
Transportation Industry, CAL. PUB. UTIL. COMM'N R. 12-12-011 (2013) [hereinafter California Decision on
Regulations].
6. Liu Complaint, supra note 1, at 5.
7. Streitfeld, supra note 1.
8. Liu Complaint, supra note 1; Order Granting Petition to Approve Compromise of a Minor's Claim, Liu,
No. CGC-14-53-6979.
9. Barry Korengold, Insurance? We Don't Need No Stinkin' Insurance, S.F. CAB DRIVER'S ASS'N (Aug.
12, 2014), http://www.sfcda.org/archives/1316.
10. The Company, UBER, https://www.uber.com/about.
11. California Decision on Regulations, supra note 5; The Company, UBER, https://www.uber.com/about;](ViewImageLocal?handle=hein.journals/tlj51&div=43&collection=&method=preview&ext=.png&size=3)
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Along for the Ride: Regulating Transportation Network Companies
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