Transportation Network Companies

Transportation network companies must meet certain operating responsibilities. TNCs must:

• Maintain an office that is open and staffed from 9 a.m. until 5 p.m. on all business days.
• Maintain a mailing address and toll-free business and customer complaint telephone numbers that are answered during hours of operation.
• Provides a system by which passengers can retrieve lost items.
• Maintain all required records for two years and make quarterly reports to the director of the Department of Finance and Administrative Services.
• Require its drivers’ vehicles to be insured
• Require its drivers to meet the vehicle markings of the TNC while in service.
• Ensure that the TNC’s drivers comply with all rules and operating standards.
• Forward correspondence from the director of the Department of Finance and Administrative Services to the TNC’s drivers.
• Require that passengers can view a TNC driver’s photo and the vehicle’s license plate number on the device used to connect with the dispatch application before the trip is initiated.
• Maintain insurance and proof of insurance.
• Notify the director of the Department of Finance and Administrative Services when drivers or licensees are convicted of serious criminal offenses that have a bearing on their ability or fitness to operate a taxicab. Such offenses may include: theft, fraud, robbery, burglary, assault, sex crimes, alcohol, drugs or prostitution.
• Notify the director of the Department of Finance and Administrative Services if a TNC driver is involved in a traffic accident, has a driver license suspended or for-hire or TNC endorsements revoked.
• Employ a zero tolerance drug and alcohol policy with respect to TNC drivers.
• Review and maintain records of criminal background checks and driving records of TNC drivers. Drivers convicted within the last seven years for any alcohol or drug related offense, reckless driving, hit and run or driving with a suspended or revoked license are not permitted to provide TNC services.
• Require a safety inspection by an approved mechanic of affiliated TNC vehicles before they provide services and annually thereafter.
• Pay any penalties imposed by the director of the Department of Finance and Administrative Services.
• Report assaults or robberies of TNC drivers if they have not reported these crimes themselves.

Transportation network companies must maintain insurance coverage, in compliance with RCW 46.72B.180 for all TNC-affiliated vehicles at any time they are active on a TNC’s online dispatch application.

During the period before a passenger requests a ride (period 1), the insurance coverage must include:

• Liability coverage in amounts no less than $50,000 per person for bodily injury, $100,000 per accident for bodily injury of all persons, and $30,000 for property damage.
• Underinsured motorist coverage to the extent required under RCW 48.22.030.
• Personal injury protection coverage to the extent required under RCW 48.22.085 and RCW 48.22.095.

During the period from when the passenger requests a ride until the passenger exits the TNC-affiliated vehicle (period 2), the insurance coverage must include:

• Combined single limit liability coverage in the amount of $1 million for death, personal injury, and property damage.
• Personal injury protection coverage to the extent required under RCW 48.22.085 and RCW 48.22.095.

During the period when the passenger enters the TNC-affiliated vehicle until the passenger exits the vehicle (period 3), the insurance coverage must include:

• Underinsured motorist coverage in the amount of $100,000 per person, $300,000 per accident.

Alternatively, the insurance coverage requirements can be met by securing 24-hour coverage in the following amounts:

• $100,000 for any recovery for death or personal injury.
• $300,000 for all persons killed or receiving personal injury.
• $25,000 for property damage.
• $100,000 per person and $300,000 per accident in underinsured motorist coverage.
• Additionally, the insurance policy must:
  • Name the City of Seattle as an additional insured.
  • Be issued by an admitted carrier with an A.M. Best Rating of not less than B (VII) unless an exemption has been met for the use of a surplus line insurer.
  • Provide that the insurer will send a 30-day non-renewal or cancellation notice.
  • Not include aggregate limits or named driver exclusions.

A transportation network company must file evidence of insurance with the director of the Department of Finance and Administrative Services as part of its annual licensing.

Drivers must keep proof of commercial insurance in their vehicles while operating them. If you are a TNC driver, you must also maintain your own auto insurance policy to provide coverage when your vehicle is not being used to transport passengers.

Transportation network companies must provide a written insurance disclosure of the following statements to prospective TNC drivers in prospective drivers’ terms of service:

“WHILE OPERATING ON THE DIGITAL NETWORK OR SOFTWARE APPLICATION OF THE COMMERCIAL TRANSPORTATION SERVICES PROVIDER, YOUR PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICY MIGHT NOT AFFORD LIABILITY, UNDERINSURED MOTORIST, PERSONAL INJURY PROTECTION, COMPREHENSIVE, OR COLLISION COVERAGE, DEPENDING ON THE TERMS OF THE POLICY.

IF THE VEHICLE THAT YOU PLAN TO USE TO PROVIDE COMMERCIAL TRANSPORTATION SERVICES FOR OUR COMPANY HAS A LIEN AGAINST IT, YOU MUST NOTIFY THE LIENHOLDER THAT YOU WILL BE USING THE VEHICLE FOR COMMERCIAL TRANSPORTATION SERVICES THAT MAY VIOLATE THE TERMS OF YOUR CONTRACT WITH THE LIENHOLDER.”

Transportation network companies must use an online dispatch application to match drivers and passengers. A TNC’s online dispatch application must be approved by the director of the Department of Finance and Administrative Services as part of the TNC’s annual licensing process.

Application dispatch system rates must be transparent to customers in the online app when they request service and before they confirm the ride. The total fare, a fare range or a rate by distance or time must be displayed clearly on the application dispatch system. The system must also clearly display, before the ride is confirmed, any variables that may result in higher rates or fares, including tips, waiting time, demand pricing or any other surcharges.

Taxicab associations, for-hire vehicle companies and transportation network companies must compile accurate and complete operational records and keep these records for two years. The records must include:

• The total number of rides provided by each taxi, for-hire vehicle license holder or transportation network company.
• The type of dispatch for each ride (hail, phone, online app, etc.).
• The percentage or number of rides picked up in each ZIP code.
• The pick up and drop off ZIP codes of each ride.
• The percentage by ZIP code of rides that are requested by telephone or applications but do not happen.
• The number of collisions, including the name and number of the affiliated driver, collision fault, injuries and estimated damage.
• The number of rides when an accessible vehicle was requested.
• Reports of crimes against drivers.
• Records of passenger complaints.
• Any other data identified by the director of the Department of Finance and Administrative Services to ensure compliance.

Records may be maintained electronically.

Data must be reported quarterly to the director of the Department of Finance and Administrative Services. Reports are to be made electronically on forms provided by the director.

Drivers must complete driver’s education and be tested before obtaining a for-hire driver’s permit. The training must include completion of the National Safety Council's Defensive Driving Course and at least one additional driving training program approved by the director of the Department of Finance and Administrative Services.

Transportation network companies may provide their own driver training programs, which must include the following topics:

• Defensive driving,
• Use of emergency equipment,
• Procedures for driver safety,
• Risk factors for crimes against drivers,
• Passenger relations and
• Standards of professional conduct.

Required testing may be administered by the City of Seattle, jointly by the City and King County, or by a licensed TNC or a third-party vendor. Examinations must test the driver's:

• Knowledge of requirements and laws for operating TNC affiliated vehicles;
• Ability to speak and read English well enough to fulfill the duties of a driver;
• Knowledge of vehicle safety requirements;
• Knowledge of the geography of Seattle, King County and the surrounding region;
• Knowledge of local public and tourist destinations and attractions and
• Knowledge of risk factors for crimes against drivers, of emergency procedures and of personal safety equipment.

Exam procedures and content must be approved by the director of the Department of Finance and Administrative Services.

All drivers affiliated with a transportation network company must consent to an annual criminal background check. TNCs must review the background checks and maintain records of them.

The background checks may be conducted by fingerprinting the driver, with prints forwarded to the FBI or Washington State Patrol for investigation. They may also be conducted by a third-party vendor approved by the director of the Department of Finance and Administrative Services.

Companies also must report criminal offenses by drivers that affect the driver’s fitness to operate a TNC affiliated vehicle. These criminal offenses include but are not limited to:

• Fraud
• Theft
• Robbery
• Burglary
• Assault
• Sex crimes
• Alcohol or drug offenses
• Prostitution

All TNC affiliated vehicles must undergo an annual vehicle safety inspection before they can be used to serve passengers. This inspection covers all major components of the vehicle, as well as vehicle features that aid the driver and keep the passenger comfortable. Inspections certify that the vehicle is mechanically sound and fit for driving and will note that all plates, decals and notices required and supplied by the City are legible and properly displayed.

The inspection must be performed by a mechanic approved by the director of the Department of Finance and Administrative Services. See the list of City-approved vehicle safety inspection mechanics.

The TNC has responsibility to require that each affiliated vehicle passes an inspection and to maintain inspection records for all affiliated vehicles

City inspectors enforce the regulations affecting drivers and vehicles affiliated with TNCs. Inspectors ride announced in TNC affiliated vehicles to ensure operating standards are met. Please contact us if you have questions about driver or vehicle operating standards.

You have 10 days to request a hearing if you receive a violation, suspension or revocation. Instructions for requesting a hearing will be on the reverse side of the notice of violation or license action form, or you may contact us.

If you receive a notice of infraction, you must respond within 15 days. Instructions for responding will be on the reverse side of the notice of infraction. Payments or requests for hearings are processed by Seattle Municipal Court.

You must pay any fines within 30 days of the issue date. Failure to pay could result in the loss of your license. This table list Seattle fines for TNC affiliated drivers and vehicles:

A TNC is subject to monetary penalties for violations incurred by its affiliated drivers and vehicles and for revocation of its annual license for violations outlined in SMC 6.310.610.C.