With a 4-1 approval of Lyft, Inc.’s license to operate in the state of Montana by the Montana Public Service Commission, it has become the second authorized Technology Network Carrier (TNC) in-state.
Lyft’s nationwide competitor, Uber, was the first to receive approval back in 2015, though state law had to be altered. The only objection to Lyft stepping into the field came from Carrie Pintar, owner of Livingston, Montana’s Amazing Taxi, on the grounds that Lyft could not meet legal insurance obligations.
The commission by and large disagreed, concurring with Lyft’s witness that coverage exists from the moment a passenger enters the vehicle and until the last one leaves. By law, TNCs must maintain a minimum $50,000 insurance coverage for death and bodily injury per person, $100,000 per incident and $25,000 for property damage. Those requirements shoot up to $1 million when drivers have a pre-arranged ride.
Commissioner Bob Lake offered the sole dissent, who based his rejection on the grounds of corporation versus small business.
“Unlike existing regulated motor carriers, out-of-state corporations like Uber and Lyft operate with very little oversight from the PSC and they are not obligated to serve the public,” Lake said. “I’m concerned that if these firms are allowed to squeeze out mom and pop taxi companies, critical portions of our population could be left without essential transportation services.”
However, with Lyft’s approval, it can begin operations immediately. Such is their right, Commissioner Travis Kavulla noted, as fit operators.
“In the past, existing operators held what amounted to a competitor’s veto over newcomers,” Kavulla said. “That is no longer the case, and today, any firm can compete, so long as they can demonstrate that they are a ‘fit’ operator.”