Cover Sheet (This cover sheet will be removed before submission to Council.) Much of the data within this report is data that transportation network companies (TNC) believe is proprietary. The TNCs have informed us that they intend to initiate litigation to enjoin public disclosure (including consideration by Council in any open session) of any proprietary data. In anticipation of this litigation, this report should be treated as confidential and internal dissemination should be limited. The TNCs have specifically itemized data that they believe is proprietary and confidential. Please see the following list: List A: Data types considered trade Trip counts/rides per day by industry Magnitude of difference across industries Any data that allows competitor to determine market share Percent of rides unfulfilled by zip code Trip revenue or TNC Licensing fee data by industry Collisions, crimes, complaint data if presented as a hard count List B: Data types considered ok for release*: Growth of industry over time Zip code data similar to what is shown HYPERLINK data/" \t "_blank" by industry Zip code origin and destination displayed as a heat map similar to HYPERLINK \t "_blank"} Top 5 zip codes of fulfilled and unfulfilled trips separated by City and County Number of drivers applied Number of vehicles inspected Rides by dispatch type Collisions, crimes, complaint data if presented as a of total trips Enforcement activity data Fee data for TNC Licensing IF the $525,000 cap is reached Fee data for the WAS fee IF it is shown as an aggregate across all industries as a single number *According to the TNCs, there are some items within List that could be presented in a way or in a certain context that would make the item a trade Accordingly, the TNCs reserved the right to raise objections to the release of the data for this report or future reports. ATTORNEY EYES ONLY SEA005223 For-Hire Industry Report Provided by City ofSeattle and King County pursuant to Seattle Municipal Code 6310 and King County Code Title 6.64 September 30, 2015 (ADD LOGOS) ATTORNEY EYES ONLY SEA005224 Executive Summary Per King County Ordinance 17892 and City of Seattle Ordinance 124524, the City and county are required to report to their respective councils on the first year of each jurisdiction?s new regulatory framework for the for-hire industry, which includes taxis, flat-rate vehicles, and transportation network companies (TNCs). This report serves that purpose and includes details on the following information: Rides per day: Overall in the for-hire industry, there has been a 94 percent increase since 2013, with TNC trips showing a consistent expansion of 13 percent quarter-over-quarter. The number of trips by the taxi industry has declined substantially. 0 Type of dispatch for each ride: Taxis are primarily requested via the phone and through street hails, while flat-rate vehicles have a larger percentage of their trips arranged through applications. TNCs are completely app-based. 0 Percentage by ZIP code of rides that are requested but unfulfilled: In general, neighborhoods with less density have higher rates of unfulfilled rides amongst TNCs, while downtown Seattle and Capitol Hill have very high fulfillment rates. Excluding Seattle neighborhoods, Seatac and eastside cities have the highest fulfillment rates among TNCs in King County. 0 Collisions and crimes against drivers: Collision data indicates that no one industry is overrepresented in crimes or collisions, nor has there been a significant increase in collisions relative to the number of for-hire vehicles in service. 0 Passenger complaints: There has been no significant change in the number of industry-related complaints received by the City or county. It may not be apparent to users of the TNC network that the City and county are resources for complaint resolution. 0 Enforcement results: The City has focused on safety-related enforcement efforts. The unique nature ofthe TNC business model has prompted new methods for approaching enforcement, including data sampling and auditing. 0 Conversion from licenses to medallions: Because data on the value of licenses and medallions is self-reported, it is difficult to determine the effects of the medallion transition on value. The self-reported prices do not indicate a significant change following the adoption of the new regulations. 0 Wheelchair Accessible Services Fund: The fund is currently in operation within the City of Seattle. The money generated is close to that estimated for planning purposes. In King County, outside of Seattle, the WAT fund has yielded significantly less than was originally expected. As noted within this report, there has been tremendous overall growth in the number of trips taken by the for-hire industry. TNCs trips have increased significantly each quarter while the taxi industry has experienced a decline from previous years. While the TNCs provide an excellent mobility service, it is important to understand how these companies are affecting larger goals related to congestion, air quality and equity. Because only taxis and flat-rate services provide accessible vehicles, accept cash payment (important for customers who are unbanked), and can be hailed without the use of a smartphone, there are challenges associated with relying entirely on app-based services as they exist today. Additionally, because of the clear demand for TNC services, there are also emerging companies and apps that are coming to the market that do not fit into the existing regulatory framework. Given ATTORNEY EYES ONLY SEA005225 these issues, the City and county are beginning work on a comprehensive shared mobility services policy review, with the intent of aligning our regulatory framework with our broader policy goals. The data included in this report will inform that process as we seek to further develop and refine our approach to the industry. Background In 1979, King County, the City of Seattle and the Port of Seattle initiated a program to regionalize taxicab regulations and licensing by developing consistent regulations and services across jurisdictions. This promoted public safety and customer service by standardizing fees, regulations, enforcement and rate review procedures throughout King County. This program continued until September 1988, when these three entities formed the Regional Taxicab Commission. The Regional Taxicab Commission recommended rates, entry restrictions and other related revisions to the King County Code, prior to the Commission ending on Dec. 31, 1990. Based on the Regional Taxicab Commission?s recommendation to cease issuing new taxicab licenses, the City and county capped the number of existing licenses. Since August 1995, King County and the City of Seattle have shared responsibility for regulating driver and vehicle licensing for the local for hire industry. The City of Seattle?s Regulatory Compliance and Consumer Protection (RCCP) Division and King County?s Records and Licensing Services (RALS) Division provide these services pursuant to an interlocal agreement. This agreement grants authority to both the City and the county to issue for-hire driver licenses and taxicab vehicle licenses. Under the interlocal agreement, the county licenses all for-hire drivers on behalf of the county and City of Seattle. In exchange, the City licenses all for-hire vehicles on behalf of both jurisdictions. King County Ordinance 17892 and City of Seattle Ordinance 124-524- In August and September 2014, respectively, the City of Seattle and King County councils adopted ordinances that brought numerous changes to for-hire industry regulations. The ordinances added new regulations for transportation network companies (TNCs) and modified King County Code, Title 6.64, and Seattle Municipal Code 6.310 to streamline and update regulatory requirements across the for-hire transportation industry. Key changes included: Taxi Medallion Conversion: Effective Feb. 1, 2015, all existing Seattle and King County taxi and flat- rate licenses were converted to property rights or "medallions.? The medallion system deems a taxi or flat-rate vehicle license to be intangible property. A medallion owner can, therefore, use the medallion as collateral to secure a loan from a bank or any other financial institution. In conjunction with the medallion conversion, a cap was established on the number of flat-rate vehicles. Driver Training and Testing: The new legislation allows taxicab associations, flat-rate companies and TNCs to use approved third-party vendors to provide driver examinations and driver training. The legislation also eliminated an English proficiency test. In September 2014, RALS, which had previously administered paper exams, executed a contract with a third party to provide electronic testing and training. RALS also developed a new online course, allowing prospective applicants 24/7 access to complete the driver training course via their preferred electronic device. The online course is available ATTORNEY EYES ONLY SEA005226 to everyone with no associated fee. Alternatively, companies may provide their own driver training and testing, and several companies provide approved driver training and testing processes. All drivers also take a 4-hour online defensive driving course provided by the National Safety Council. 2013 2014 For-Hire Driver Exam Method Total Tests Exam Fee1 Pass Rate Total Tests Exam Fe: Online Not Available 1,199 No Fee In-Person (Computer) Not Available 39 No Fee In-Person (Paper-Based) 1,185 43% 929 No Fee Total 1,185 2,167 Notes: 1The initial exam and one retake is part of the For-Hire Driver Application fee. Subsequent exam retakes are subject to a exam retake fee the waiting period is waived for online exams. 2In-person computer-based exam is available upon request to accommodate drivers who may not have access to the onl 2013 2014 For-Hire Driver Training Training Fee Completed Training Method Enrolled Initial/Retake Enrolled lnitial/Ret Online 238 No Fee In-Person (1 Day) Not Available Not Available n-Person (2 dayDriver Licensing: The new legislation allows taxicab associations, flat-rate companies and TNCs to use approved third-party vendors to provide driver background checks as part of the licensing process. King County has approved third-party background check vendors for each of the TNCs. Lacking data on current and projected TNC drivers, in the fiscal note associated with Ordinance 17892 the county estimated a total of 1,800 driver permits would be issued annually. In the eight months since TNC for- hire driver permits have been required (Dec. 12, 2014), 12,725 TNC For-Hire Driver Permit (FHDP) applications have been received and 5,360 new permits issued. Many of the outstanding applications are pending final processing subject to receipt of background checks from third-party providers, are rejected due to incomplete application materials, or are duplicate applications for drivers who drive for more than one company. ATTORNEY EYES ONLY SEA005227 In contrast, in 2014, RALS processed 4,172 for-hire driver license applications and issued 3,642 for-hire driver licenses to taxi and flat-rate drivers. To determine the success of TNC licensing efforts, the City of Seattle performed a data audit for a specific time period on June 29, 2015. Of the 934 TNC trips reported, six drivers (0.6 percent) had not submitted an FH DP application, and the City and county are working with the TNCs to determine why this discrepancy exists. Vehicle Safety Inspections: The City of Seattle is responsible for approving and training third-party vehicle mechanics on vehicle safety inspection requirements. Since inception of the third-party vehicle inspections, 10,022 vehicles have been inspected with a 92.5 percent pass rate. Over 40 locations, each with multiple mechanics, have been approved to provide inspections. For-Hire Industry Data Both the City and county?s new ordinances require all companies in the for-hire industry to provide trip, collision, crime and complaint data to the City of Seattle and King County on a quarterly basis. Companies providing data for this report are as noted in the chart below. (14-14 (14-14 (11-15 (11-15 Trip Data Data* Trip Data Data* Uber Sidecar Orange Cab STITA Taxi North End Taxi Yellow Cab Farwest Taxi Green Cab United For Hire All Day For Hire Apple For Hire CNG For Hire Eastside For Hire Flat Rate For Hire Data Crimes, Collisions and Complaint data Rides per day The for-hire industry provided over 27,000 passenger trips per day in the first quarter of 2015. The industry has expanded by 94 percent since 2013 with TNC trips showing a consistent expansion of 13 percent quarter-over-quarter. As can be seen in figure below, taxi trips have declined by just over 5,200 trips per day (37 percent) and taxi revenue has decreased 28 percent since TNCs entered the market. Since ordinance implementation, the data for the two most recent quarterly reporting periods suggests the decline in taxi trips may be beginning to stabilize. Flat-rate vehicle companies did not provide enough data to assess their sector of the industry. ATTORNEY EYES ONLY SEA005228 Rides per day across industries 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Rides per day TNC Taxi Hat-rate? 2013 - 14,091 - I 2014 04 16,328 8,825 642 I 2015 01 18,449 8,800 1 52 Not all flat-rate companies provided data. In the first quarter of 2015, TNCs provided 68 percent of all trips in the Seattle/King County area, and a single TNC company provided the majority of all trips in the Seattle/King county area. Type of dispatch for each ride Historically, taxis are the only vehicles that could legally accept trips hailed on the street in Seattle/King County. Ordinance 124524 allowed all for-hire vehicle types to be dispatched through an application dispatch system (ADS) and allows both taxis and flat-rate vehicles to accept street hails. TNCs only accept trips by ADS as their business model is structured around this framework. The figure below demonstrates that taxi companies continue to use traditional methods of dispatch while flat-rate companies have rapidly expanded dispatch options. For example, Eastside For-Hire vehicles are dispatched through ADS such as Uber For-Hire, and Curb. Seven ADS have been approved for use in Seattle/King County, and any vehicle that is dispatched by an app can set rates independent of the taximeter rate or approved flat rate. ATTORNEY EYES ONLY SEA005229 100Hail I App I Phone Rides by request type - Ql Hat-rate? 0.3% 58.5% 41.1% Taxi 43.0% 54.4% 2.6% Not all flat-rate companies provided data. Origin [destination ZIP codes As a part of the new regulations adopted by both the City and the county, the industry is required to submit origin and destination data for each trip completed within King County. Below are industry maps illustrating the relative number of origins and destinations in each ZIP code. The maps below are for the last quarter of 2014 and the first quarter of 2015. ATTORNEY EYES ONLY SEA005230 .u no. In Ill-1334.: lsun?llulhaliln llu I ?0 .2 2..th 1.51921; H956 LT . 3. n. 38 2. $5385 is $8.3 I 80.2 . 5% 8a.: . 5950.? I 8% . 53 I 80It: abllufl; I: .. .Dn-?ulu?.39.. tan .3 2..th Es 2. 52.8 ?mi 2:5 38.8 I 25.2 . a: 80.3. 50.8 I 83 . 53 I :83. 53: I 98aucwm? ATTORNEY EYES ONLY ATTORNEY EYES ONLY SEA005232 Legend .1-1000 10.001 - 15.000 .1001-3000 - 15.001 .30.000 - 3,001 - 5.000 - 30.001 - 50.000 '3 5?001 10?000 - 50'000+ (write a'eas coma'n no mta) Destinations for Taxis and Flat Rate, 04 2014 Legend .1- 1.000 I Imus?v it tuna?unwach-a?zwm .1001 .3000 .15001. 30,000 .. - 3.001 .5000 - 30.001. 50.000 . 5.001 - 10.000 - 50.000+ (write a'eas coria'n no data) Human-raunc- c-z'm I wv Destinations for TNCs, 04 2014 a mus?unwmcuuaawn Imam?un? ?ny- w. c< l'n ATTORNEY EYES ONLY SEA005233 Legend .1-1000 10.001 - 15.000 .1001-3000 - 15.001 .30.000 - 3,001 - 5.000 - 30.001 - 50.000 '3 5?001 10?000 - 50'000+ (write a'eas coma'n no mta) Origins for Taxis and Flat Rate, 01 2015 Legend QSDOT .1- 1.000 mun-nu I Amman?v mu 4: 931310?: w. .1001 .3000 .15001. 30,000 - 3.001 .5000 - 30.001. 50.000 5.001 - 10.000 - 50.000+ (wme gamma" no dam Human-raunc- ?luau?unmann- r-w c-z'm Orig'ns for TNCS, Q1 2015 wv ??Vu-omamvwvu-w a mun?unwmcuuaawn ulna-amn? w- c1 l-n SEA005234 ATTORNEY EYES ONLY Legend .1-1000 10.001 - 15.000 .1001-3000 - 15.001 -30.000 - 3,001 - 5.000 - 30.001 - 50.000 5.001 - 10.000 - 50,000+ (Wh'te a'eas coma'n no mta) Legend Destinations for Taxis and Flat Rate, 01 2015 - 1 - 1.000 .1001 .3000 .15001. 30,000 - 3.001 -5.000 - 30,001- 50.000 5.001 - 10.000 - 50.000+ (write a'eas corla'n no data) a tuna?ulw?chuan?u? alum?unmann- rn-n c-z'm Destinations for TNCs, Q1 2015 l'n Percentage of rides that are requested but unfulfilled, by ZIP code Only TNCs provided complete ZIP code data for both completed and unfulfilled trips. The two largest taxi companies, which account for 93 percent of taxi rides, reported they fulfilled all trip requests. TNCs fulfilled 97.05 percent of all trips requested. The tables below show the top five ZIP codes in the Seattle/King County area with fulfilled and unfulfilled rides. ZIP codes with less than 100 ride requests were excluded. Requests outside of urban corridors are less likely to be fulfilled while requests in downtown Seattle, Bellevue, Capitol Hill and Mercer Island are more likely to have the ride request fulfilled. TNCs refer all requests for accessible trips to Yellow Cab via an in-app link. ZIP codes with most unful?lled rides ZIP Code City (Excluding Seattle) 98065 Snoqualmie 98070 Vashon Island 98038 Maple Valley 98075 Sammamish 98023 Federal Way ZIP Code Seattle Neighborhood 98116 West Seattle 98134 Sodo 98136 West Seattle 98125 Lake City 98118 Rainier Valley ZIP Codes with mostfulfilled rides ZIP Code City (Excluding Seattle) 98004 Bellevue 98040 Mercer Island 98005 Bellevue 98148 Seatac 98006 Bellevue ATTORNEY EYES ONLY SEA005235 ZIP Code Seattle Neighborhood 98154 Downtown 98101 Downtown 98112 Capitol Hill 98121 Belltown 98102 Capitol Hill Collisions and crimes against drivers Through the first quarter of 2015, 198 collisions were reported to Seattle/King County. In 113 of the collisions, damages were paid, and the average payment per collision was $3,425.70. No one company was overrepresented in collision data. No crimes against drivers were reported in the normal course of data reporting, but one crime was reported to the Seattle Police Department and characterized as a hate crime against the driver. Passenger Complaints King County, the City of Seattle and the Port of Seattle share a taxicab complaint line, 206-296-TAXI. This number is displayed in taxicabs. The City and King County also provide the option to submit complaints online. All complaints are investigated and results are reflected in the Enforcement section. All ADS are required to display either the taxi complaint hotline or the City of Seattle Customer Service Bureau number. Complaints received during the period are reflected in the table below. Year Short Wrong Driver Vehicle Service/ Total Haul/ Rate/ Conduct Condition Response Complaints Refusal Wrong Route 2014 41 51 254 2 28 376 2015* 40 39 272 3 5 359 Data through June 30, 2015 TNC and flat-rate vehicles do not prominently display a complaint hotline, so regulatory authorities rarely receive complaints originating from TNC and flat-rate vehicle rides. All companies are required to self-report passenger complaints, and thresholds for reporting vary wildly. The TNC industry self-reports an average of 488 complaints per quarter, while the taxi associations and flat-rate companies self-report an average of 13 complaints per quarter. Due to the real-time passenger rating system via the ADS, TNC passenger complaints are rarely referred to Seattle/King County, with three received in the previous yeah Enforcement results Enforcement activities are both routine and complaint-based, and several investigations are ongoing. The figure below represents enforcement actions taken by the City of Seattle since implementation of ATTORNEY EYES ONLY SEA005236 the ordinance. From Aug. 14, 2014-Jan. 1, 2015, enforcement teams prioritized education of industry participants on Ordinance 124524. After that period, routine on-street inspections, planned buys and licensing audits occurred. Routine inspections include inspectors identifying taxis, TNCs, limos or flat- rate vehicles and doing on-street safety inspections and documentation checks. Planned buys occur when undercover inspectors schedule or hail rides with vehicles. The inspector identifies violations, and all attempts are made to provide the drivers and companies with timely feedback or citations based on the undercover inspector?s observation. Enforcement Activites by Industry 08/14/2014 - 06/30/2015 400 350 300 Number 250 of 200 Incidents 150 100 50 0 Flat?Rate 19 125 42 54 0 Limousine 39 173 Taxicab 221 157 331 391 0 Routine Inspection Planned Buy Education I Complaint Investigations Audit With regard to TNC enforcement, driver licensing and vehicle inspections were examined, and the three audits noted in the graph above compiled trip data of 934 trips across all TNC companies. As mentioned above, of the reported trips, six drivers were identified that had not submitted an FHDP application. Additionally, 158 drivers did not have a City of Seattle Business License. Inspectors attempted to educate industry participants in the new laws, but they issued notices of violation (NOV) and notices of intent (NOI) when education attempts were unsuccessful. Public safety concerns were taken especially seriously. For example, TNC drivers who accept a street hail are not covered by either their company?s or their personal insurance, thereby putting their passengers and the public at significant risk. ATTORNEY EYES ONLY SEA005237 Enforcement Action By Industry 08/14/2014 - 06/30/2015 140 Number 120 of 100 . 80 InCIdents 60 40 20 0 Limousine 0 151 1 15 Flat-Rate 4 62 2 36 Taxicab 19 16 1 I NOV I NOI Criminal lWarning Industry Discussion of the conversion from licenses to medallions Effective Feb. 1, 2015, all existing taxi and flat-rate licenses were converted to property rights or "medallions.? The medallion system deems a taxi or flat-rate vehicle license to be intangible property. As a result, a medallion owner can use the medallion as collateral to secure a loan from a bank or any other financial institution. The City and county met with both industry representatives and lending institutions before determining medallion leasing and medallion transfer provisions. The figure below details the number of taxi and flat-rate medallions and the respective jurisdictions awarding those medallions. Medallion Type Jurisdiction of Medallions City of Seattle-only King County-only City of Seattle and King County (Dual) Taxi 334 243 354 Flat-rate 0 273 197 Applications for medallion transfers began on April 1, 2015. Before transferring a medallion, a 10-day waiting period and public notice process was instituted to allow the City to check for any outstanding liens and to allow lenders adequate notice that the property right is changing ownership. Since that time, 67 flat-rate vehicle medallions and 18 taxi medallions have been transferred. As required by SMC, taxi medallion sellers must anonymously submit the transfer price to the City. The figure below shows historic and current median taxi medallion transfer prices. ATTORNEY EYES ONLY SEA005238 Median Transfer Price of Taxi License/Medallion Cl. 5 $225,000.00 i=3 '5 $175,000.00 78 5 $125,000.00 ?Seattle KingCo. 3 $75,000.00 Dual '5 .2 95 $25,000.?90191919090009? *Data forJan. 1, 2015-June 30, 2015 Wheelchair Accessible Services Fund The Wheelchair Accessible Services Fund (WASF) collects a 10-cents-per-ride surcharge from all rides by taxicabs, TNCs or flat-rate vehicles. The fund is used to offset the higher operational costs of wheelchair- accessible taxis (WATs). The distribution of the City of Seattle fund was developed with industry input, additional cost documentation on WAT vehicles and prioritization of reimbursement that ensures better availability for passengers requesting WAT service. This is achieved by compensating drivers $20 for each wheelchair passenger trip that they accept, compensating drivers $15 per shift for the additional fuel cost through reduced lease costs, and reimbursing WAT owners for the maintenance and equipment cost of the specialized vehicles. The City of Seattle WASF began reimbursing the 45 currently licensed WATs in July 2015. Starting in December 2015, the City will study wheelchair passenger service by the for-hire industry with input from the Seattle Commission for People with Disabilities. At that time, expansion of the number of WATs or other wheelchair-accessible vehicle types will be considered. Rules for distribution of the King County WASF are currently under consideration. The chart details the total surcharge paid for trips Nov. 14, 2014-June 30, 2015. Seattle King County Wheelchair Accessible Wheelchair Accessible Industry Segment Service Surcharge Service Surcharge Taxi $127,963 $88,062 TNC $382,139 $47,926 Flat-Rate* $13,088 $15,015 Total $523,190 $151,039 *Flat-rate companies have required owners to pay the surcharge individually, so collection lags by several quarters. Regulatory revenue under the former and proposed regulatory structure ATTORNEY EYES ONLY SEA005239 Prior to the implementation of the new for-hire regulations in August/September 2014, fees associated with the City of Seattle and King County regulation of the for-hire transportation industry were primarily individual license fees collected from each driver (FHDL) and vehicle owners (For-Hire Vehicle License). The fees were collected once annually, at the time of application, from both new and renewing licensees. King County collects the For-Hire Driver License related fees, and the $50 City of Seattle fee is remitted to the City. The City of Seattle collects all for-hire-vehicle-related fees, including, but not limited to, annual vehicle licensing fees, transfer fees, late fees, etc. The county?s For-Hire Vehicle License fee and all other for-hire vehicle related fees collected by the City are remitted to the county. The taxi/flat-rate fee structure is as follows: King County Dual City of Seattle (only) (County/City) (only) FOR-HIRE DRIVER LICENSE (Taxi and Flat-Rate Drivers) Application $90 $90 $90 Photo ID - $5.00) Fingerprinting Background Check $34-75 $34-75 $34-75 Driver Abstract $13 $13 513 City Fee 550 $50 TOTAL $137.75 $187.75 $187.75 Taxi/Flat-Rate Vehicle License $450 $950 $500 Taxi Association License $1,000 Flat-Rate Vehicle Company Fee Under the new regulations, the revenue structure for licensing taxicab and flat-rate drivers and vehicles remains largely unchanged. The new regulations brought the TNCs into the City and county regulatory structure and require the companies and their drivers to operate with approved licenses/permits. Instead of company, driver and vehicle licensing fees, the TNCs pay a 35-cent fee per ride originating in King County and 10-cent fee per ride originating in the city of Seattle. The county and City lacked comprehensive data about the volume of TNC drivers and rides when the new for-hire and TNC regulations were developed. Based on the best available data from the incumbent industry and the TNCs, staff estimated that there would be 1,800 new TNC drivers. As ofJune 2015, the County had received 12,725 new applications. Similar challenges existed for determining the potential number of trips in each jurisdiction. Estimates are shown in the table below; however, significantly fewer rides are originating in unincorporated King County and contract cities, as compared to the city of Seattle. For King County, fewer rides translates ATTORNEY EYES ONLY SEA005240 into less fee revenue to cover regulatory costs. As can be seen in the table below, on average, there are only 47 percent of the estimated trips in King County. (Fourth quarter 2014, first quarter 2015 and second quarter 2015) Est. Annual Est. Annual Est. Trips (Qtr) Est. Revenue Trips Revenue (Qtr) KC TNC 1,470,000 $514,500 367,500 $128,625 Ride Fee Sea TNC 5,250,000 $525,000 1,312,500 $131,250 Ride Fee KC WASF 3,500,000 $350,000 875,000 $87,500 Sea WASF 8,000,000 $800,000 2,000,000 $200,000 Actual Trips Actual Trip Actual Trips Actual Trip Actual Trips Actual Trip Quarterly of Quarterly 2014Q4 Revenue 2015Q1 Revenue 2015Q2 Revenue Trips estimate Revenue 2014Q4 2015Q1 2015Q2 Average Avg. KC TNC 128,729 $45,055 153,645 $53,776 238,284 $83,399 173,552 47% $60,743 Ride Fee Sea TNC 1,211,489 $121,149 1,380,641 $138,064 1,681,975 $168,198 1,424,701 109% $142,47 Ride Fee KC 279,293 $27,929 511,681 $51,168 570,264 $57,026 540,973 62% $54,097 Sea 988,970 $98,897 1,897,618 $189,762 2,226,274 $222,627 2,061,946 103% $206,19 *Collection for the WASF started on Nov. 12, 2014. Fourth quarter 2014 is not a complete quarter and was excluded from the quarterly average. The lower-than-anticipated quantity of rides in the county is problematic given the significant workload increase associated with the county's licensing of TNC drivers. Since December, when the driver licensing provisions of the new regulations became effective, RALS has worked substantial overtime to process the higher-than-expected volume of TNC permit applications. Despite these efforts, there is an ongoing processing backlog and insufficient staff to perform regular street enforcement. Further, the existing technology infrastructure lacks the bandwidth and functionality to handle the new TNC workflow. Because of known data gaps during development of the new regulations, the City, county and TNC stakeholders agreed, and the regulations authorize, the City and county to revisit fees after six months to ensure that the per-ride fee covers regulatory costs. Data reporting for the remaining quarters of 2015 will be reviewed to determine if a change is needed. Conclusions The for-hire industry has expanded dramatically since the introduction of TNCs. While new TNC drivers are less likely to be full-time, the number of total drivers has increased substantially, with a sevenfold increase in for-hire driver applications and a threefold increase in vehicle inspections. The industry, as a whole, has doubled the demand for trips provided in the Seattle/King County area, and the number of trips has continued to grow every quarter. In contrast, the incumbent industry, mainly represented by taxis, has seen a 37 percent decrease in trips and 28 percent decrease in revenue. The discrepancy in ATTORNEY EYES ONLY trips and revenue is due to contracts that the taxi industry maintains such as the Port of Seattle contract at Seatac airport and the cruise ship terminal. The TNC industry is significantly larger than originally estimated, and traditional efforts to license, regulate and ensure enforcement of this industry are being redefined. New approaches and infrastructure are necessary to ensure appropriate regulation of this field. Taxis, flat-rate vehicles, TNCs and new entrants are part of a new era of shared mobility options that allow customers to access on-demand choices for their mobility needs. Prioritizing a holistic regulatory framework for these industries and new entrants is a goal of Seattle and King County. This will ensure greater public safety, consumer protection and transportation options for our constituents. ATTORNEY EYES ONLY SEA005242