Today LYFT announced it was suspending ride-share service in the city limits of Everett. Here is a note sent to LYFT drivers today by Scott Coriell from the LYFT communications department.

Hi all, I wanted to let you know that effective today, 8/31, Lyft has paused pick-ups in Everett. This stems from concerns over rules proposed by the city, which would require Lyft drivers to get an additional business license and separate vehicle inspection to pickup riders in Everett. That’s on top of three licenses and an inspection they have to get in King County. Drivers who don’t meet these new requirements could face penalties in Everett, which include fines of up to $1,000 and up to one year in jail.

Out of an abundance of caution and to protect drivers from fines and potential jail time, we have paused pick ups in Everett until we can conclude negotiations with city council. We apologize for the inconvenience and are very hopeful that we’ll be able to reach common ground soon. Service will continue as normal in Seattle and passengers can still be dropped off in Everett.

Attached is a letter sent to city leaders in mid August outlining concerns with the rules.

Lyft Letter to Everett 8.17.17

MyEverettNews.com asked the City of Everett for their response which was provided by Meghan Pembroke…

We are aware that Lyft has issued an alert that it has paused services in Everett. Lyft cites the regulations requiring drivers to obtain a business license and a separate vehicle inspection as the basis for pausing services in Everett. The City’s recently passed for-hire ordinance references the City’s long-standing tax code requirement that independent contractors (which would include Lyft drivers) obtain a general business license. This requirement is not new to the for-hire ordinance, but a driver must comply with the already existing City tax code requirement to also be in compliance with the for-hire ordinance. The for-hire ordinance does not expressly require a separate vehicle inspection.

We know that our community values Lyft’s services and we worked hard to develop and implement regulations in a way that would not be onerous for drivers and the company, while still maintaining a strong focus on safety. The for-hire ordinance was approved by City Council in June, and the City has continued communicating with Lyft regarding their concerns since the ordinance passed. We believe we have addressed most of the company’s concerns in a Clerk’s Rule (attached). The City Clerk is authorized to create rules and regulations not inconsistent with the City’s for-hire ordinance to further clarify and implement the ordinance.

The City issued a Clerk’s Rule indicating that a vehicle passing the King County vehicle inspection program was sufficient proof of the vehicle’s compliance with the City’s inspection requirements. The City’s ordinance does not required a separate vehicle inspection outright, but Lyft felt that the City’s vehicle checklist was more expansive than many other jurisdictions and might cause the vehicle to need an Everett-specific inspection. Lyft cited King County as a vehicle inspection program it was comfortable with. The City compared the King County vehicle inspection checklist with its own and found them to be comparable. The Clerk’s Rule notes that the vehicle must also have any outstanding recall corrected if the recall creates a life-safety hazard.

As stated, the requirement that independent contractor drivers must obtain a general City business license pursuant to chapter 3.19 EMC is a requirement that existed long before the for-hire ordinance; this is not a new requirement created through the for-hire ordinance. The for-hire ordinance merely says that an independent driver must be in compliance with the existing tax code requirement to also be in compliance with the for-hire ordinance.

The Clerk’s Rule also addresses the company’s concerns that they might not be aware if the City revoked a driver’s business license and would find itself out of compliance with the for-hire ordinance if it authorized a driver without a current business license to drive in Everett. To alleviate this concern, the Clerk’s Rule requires the City to give concurrent notice of a general business revocation to a driver and any company the driver associates with.