Will legislation put the brakes on New Jersey's Uber drivers?

NORTH PLAINFIELD – Rick Thul estimates he has driven thousands of miles crisscrossing the country with his family, including three times in a motor home.

The 66-year-old borough resident never had more than a 15-mile commute to work, but loves driving, so when he retired in 2012 and was looking for a part-time gig, he made a sensible choice.

He became an Uber driver.

"I didn't really want to do a full- time commitment," he said. "But paying your taxes in New Jersey is always a challenge. My son Eric said 'what about Uber?' I didn't even know what Uber was until he told me about it."

Uber is a smartphone, ride-sharing business that is gaining momentum with millennials, particularly in urban areas. In New York City, there already are more Uber cars than yellow cabs. Headquartered in San Francisco, California, the service was founded in 2009; today, the service is now offered in 55 countries and more than 200 cities worldwide. While it is generating billions in revenue, it is also has drawn protests from governments and taxi companies, questioning the service's safety and legality.

But going by the numbers, its popularity with customers and drivers is clearly growing. According to figures supplied by the company, Uber currently allows more New Jerseyeans to support themselves economically than ADP (4,500 jobs) and MetLife (4,000).

"The major appeal to me is that I can work whenever I want," Thul said. I like to go to bed late, so a lot of times I will go out at night and work until 2 o'clock in the morning."

But a bill that is rapidly moving through the state legislature has the potential to put the brakes on the estimated 7,500 Uber drivers in New Jersey. The bill, A7365, would establish insurance and safety requirements for companies that use digital network or software applications, like Uber. If it passes, company officials say they may stop doing business in the Garden State.

How Uber works

A person looking for a ride simply downloads the Uber app on a smart phone, taps a button and the app will show exactly where the closest driver is. The app calculates the price for each fare and charges the rider's credit card automatically. Once the driver hears the ping, he or she has 15 seconds to respond.

The Uber driver has no idea what the destination of the passenger is until he or she gets in the car. Both the Uber driver and the passenger are provided with a "ghost" phone number in case they need to reach other. There are no cash transactions, including tips. The money the Uber driver receives is directly deposited into the driver's bank account.

"I always find it interesting what people do for a living and how you connect the dots with people," Thul said.

He drives a white 2014 Lincoln MKS that includes all the amenities — cold bottled water, magazines, heated and cooled seats and cell phone chargers — that a limousine provides. Thul says his Uber passengers are pleasantly surprised when they see him pull up.

"I love to exceed my customer's expectations," he said. "I want them to feel as comfortable as possible while they are in my car."

Thul's longest Uber trip was seven hours when he picked up two businessmen from Basking Ridge in Somerset County. He drove them around North Jersey and New York City until around midnight.

"I took one guy to the airport, the other guy to Jersey City, different banks," Thul recalled. "It's always interesting."

His shortest trip was driving a woman four blocks from the Short Hills train station to her home during an ice storm.

Proposed legislation

One of the key elements of the proposed legislation, supported by the insurance industry in New Jersey, would require Uber's commercial insurance coverage to take effect as soon as the driver logs onto the mobile app.

Currently, commercial coverage that Uber buys for its UberX drivers, like Thul, who use their own cars and must maintain their own auto insurance, begins when a ride request is accepted through the company's smart phone app.

Assemblyman John Wisniewski, D-District 19, who is sponsoring the bill and who chairs the New Jersey transportation committee, said a key concern is safety.

"A fundamental goal is that consumers are protected fairly and adequately if there is an accident," he said. "I think it's a non-starter to say they (Uber) have to play by a different set of rules than everyone else.

But Uber says the legislation, which also includes proposed provisions from the New Jersey Motor Vehicle Commission, will hurt the state's economy.

"More than 7,500 driver-partners in New Jersey currently use Uber to earn a real living while being their own boss," said Alix Anfang, a spokeswoman for Uber. "If this bill passes, we will be forced out of the state and these thousands of New Jerseyan's will lose their economic opportunity."

Wisniewski said there is a strong chance the bill could pass before the legislature breaks for summer on June 30.

There is also a battle between ride-sharing companies and the taxi and limousine commissions. In Hoboken it is illegal for Uber, or any other taxi service that is not licensed by the city, to pick up fares within the city. Those who do are subject to a $1,000 fine.

But Uber drivers like Thul says the company's growth is being driven by the customers it serves.

"The reason people are choosing Uber over taxis' and limos is they get great customer service, a pleasant experience and most of the time save money." Thul said. "Virtually every customer I've had with Uber goes out of their way to tell me how much they love it."

Staff Writer Everett Merrill: 908-243-6606; emerrill@mycentraljersey.com

Ride-share companies

Uber: www.uber.com/cities/new-jersey

RideWise; 908 704-1011, www.ridewise.org

Lyft: www.lyft.com