Fact Check: Is it illegal to take riders outside of the Uber or Lyft app?

Our friend Shelly Castle is back at it again. This time she is taking rides outside of the Uber/Lyft apps, which some say is illegal.

Here is a post that Facebook user “Cat Car” sent to Uber.

While we can spend an entire day talking about how much shady stuff Shelly has done, it is NOT illegal for her to take riders outside of the app, assuming, of course, she has all of the applicable permits and commercial insurance. Uber or Lyft have no say in the matter.

Now, do I believe for one second that Shelly has all of her permits and commercial insurance in order? No. She has admitted to unemployment fraud, riders have accused her of being on “Molly” and I have seen a couple more posts about her that really lead me to believe she is not taking private riders correctly, of course, I could be wrong, and I invite Shelly to correct me on this matter with the proper documents.

With that said, if Cat Car wants to get Shelly in trouble, her best bet is to go to the City of Houston with evidence that she is picking up within city limits, without a taxi/chauffeur permit. Cat Car can even alert the airport authority. Yes, we do not need TNC permits anymore, but that only applies to TNC vehicles. Even the lot says “Active App Only”. If she is picking up from the airport or within city limits without proper permits, that is a hefty fine, her car can be impounded, and jail time is possibly on the table. Will it happen without someone pressing the issue? It is highly unlikely but if she gets into an accident without proper commercial insurance, the rider has every right to sue her personally, and likely will if injuries occur.

It should be noted though that most cities have their own permitting system and requirements in place for taxi and for-hire drivers aka your City of Houston taxi permit is not going to allow you to pick up in Galveston. As Uber and Lyft drivers we do not have to worry about different permits because they pushed Texas to pass a TNC law that allows us to pick up in any city in Texas.

Yes, permit enforcement is very rare. Outside of the airport, in my 7 years of driving, I have never been approached by a city employee. This doesn’t mean it does not happen. (I am part-time and mostly drive after hours after all) If you think all you need is commercial insurance, you may be in for a rude awakening when you get into a wreck, (won’t matter who is at fault) and the insurance company decides they do not want to pay you because you were never permitted. Proper commercial insurance will have 1 million dollars in coverage, as required by the City of Houston, and you can bet your life that they will do everything they can to not pay out and lose money. I am by far not an attorney, but that would be the easiest way out.

Let me end it with this. Shelly is in the right mindset to making money and I urge each and every one of you to take a page out of her book and start poaching private riders from Uber and Lyft. (Just be sure to get the proper permits and insurance.) In my 7 years of driving, rates and payouts have only become worse. Finding out exactly what you need to take private riders should be on your to-do list. When you start taking private riders, remember, they are CHOOSING YOU. It’s okay to charge them a premium. Do not make it cheaper than Uber or Lyft. #knowyourworth