ST. CROIX — A rideshare company is operating on St. Croix even though the mobile app-based service that connects drivers with passengers is not yet licensed in the territory.
Two others ready to launch are waiting for an amendment to the law so they can legally provide the popular alternative to traditional transportation options like taxicabs that Uber offers in Puerto Rico and in over 70 countries.
VI Hail, which is advertising its 24/7 operations on social media, did not wait for the legislative process.
Clyde Daisley, VI Hail founder, who launched the ride-sharing service about four weeks ago on The Big Island to fill a transportation void, said he has 18 drivers and more than 700 users, or “Hailers.” His ridership recently hit a daily high of 25 instant fares and five scheduled. He said he has halted plans to expand to the St. Thomas/St. John District due to the lack of regulatory oversight.
“I don’t want to be blatant, and I don’t want to come across as this guy who has no respect for the government system here and legislation and stuff like that,” he said, adding that he is not “that person.”
Daisley, a Crucian businessman with a career in the information technology industry, discussed returning to his home island after 27 years, donating to the community through his businesses, and the launch of VI Hail ahead of the necessary amendment by senators.
“I’m trying to prove a case to them,” he said. “I’m trying to show with hard data and with proof that says, ‘hey, we actually need this; we actually can make this work.’”
Senator Samuel Carrión, who has authorship to the rideshare bill, could not provide a timeline of when he plans to introduce the measure. He discussed ongoing meetings with stakeholders as he works to draft the bill along with Senators Javan James Sr. and Angel Bolques Jr.
“We’re looking at different frameworks of what would best fit for the Virgin Islands because you want to ensure that it’s legislation that would benefit the territory,” he said, stressing the need to generate revenues while also ensuring the legislation is beneficial to residents. “We’re going to make sure we frame it in such a way that it will be a win-win for all in the Virgin Islands.”
As VI Hail continues operating illegally, two other ride-sharing companies — DIGICAB and VI Rider — are eagerly awaiting the legislative changes that would allow them to legally operate in the territory before launching.
Patrick Farrell, Office of Veterans Affairs director, said he has been working on his ride-sharing business, DIGICAB, for two or three years.
“I am actually ready to go with DIGICAB,” he said. “However, I am waiting until something comes out of the Legislature stating that we’re actually legally authorized to do so.”
VI Rider, which is now preregistering drivers on its website, is also ready to roll out its service as soon as the law gets amended. It has a link on the homepage of its website to an online petition to make ride-sharing apps legal in the Virgin Islands that has obtained 35 signatures since it was started on June 22.
“We have everything in place, all our software, our platform is just about ready, our prices have been determined,” Mark Coté, VI Rider solutions architect, said. “We’re just waiting for the legislation to define what the constraints are and how we can operate, and the legal and insurance framework.”
As the senators work out the legal structure, Daisley highlighted the need for rideshare due to “expensive” taxi rates assessed per passenger that must be paid in cash and limited availability, especially at night. He said VI Hail’s drivers are available at all hours and travel to remote locations seldom visited by taxi drivers.
Farrell and Magnolia Duff, VI Rider project lead, discussed the potential impact VI Hail’s launch could have on their pending operations as they wait on the law.
Duff said she hopes VI Hail’s unregulated operation does not cause a lack of confidence in the rideshare industry.
“We are following the law, and we can only hope at this point that those who are not following the law are held accountable,” she said.
The VI Department of Licensing and Consumer Affairs is actively investigating VI Hail’s activities in the territory, according to Licensing and Consumer Affairs Commissioner H. Nathalie Hodge. She noted the department has enforcement mechanisms available that can include cease-and-desist orders, fines for operating without a business license or beyond the scope of a license, and other regulatory actions to ensure compliance with local laws.
“If VI Hail or any other company is operating without proper licensure, we will take appropriate action to bring them into compliance and pursue legal measures as appropriate,” she wrote in an email response to WTJX.
Daisley welcomed licensure and competition. He is also aware of the enforcement actions DLCA can take against him.
“I know they can come fine me; I’ll pay the fine, which is fine,” he said. “And I know, you know, I might get an injunction at some point, which is OK. Everyone knows. I don’t hide this from any of our drivers or anything like that. They all know what we’re trying to do.”
Farrell said the fact VI Hail is operating before the regulatory framework has been established will negatively affect other ride-sharing companies like DIGICAB.
“It gives them a head start to the industry, or to the business and they can kind of like, ahead of everybody else, start to gather riders and drivers, so they will have the advantage,” Farrell said.
As lawmakers work on drafting rideshare legislation, there is consensus among the three ride-sharing companies and the head of the Virgin Islands Taxicab Commission that rideshare and taxi services can coexist within the territory’s transportation-for-hire industry.
Vernice Gumbs, VITCC executive director, said she supports ride-sharing if the Taxicab Commission is the entity that regulates it and the drivers’ vehicles are licensed by the commission.
“I have no objections to rideshare, provided they’re using licensed taxi vehicles to provide this service,” she said. “Another option that I would present is that I would suggest is to establish zones.”
Gumbs acknowledged the need for an alternative to taxis and limos that operates after-hours but suggested prohibiting rideshare drivers from areas traditionally covered by taxis like hotels and the airports as well as limiting the number of rideshare companies and vehicles.
“We can create a wage structure that would not be in conflict with our current tariff, and we would also, similar to taxis and limo drivers, establish a code for these operators, or rideshare drivers to use,” Gumbs said.
WTJX recently booked a ride with a friendly VI Hail driver named “Dave,” who arrived in 20 minutes to the pickup location in his air-conditioned, black Toyota Venza. A glitch in the app on the driver’s end resulted in a phone call from Daisley explaining he had to rebook the trip. The instant customer service continued with a follow-up call providing assurance the driver was on his way. The trip to Sunny Isle Shopping Center from Golden Rock Shopping Center cost $18.88. The route was displayed in real time on the hybrid SUV’s dashboard screen as well as on the app. The driver apologized for the silent trip, explaining the app does not allow him to play music.
While Daisley noted ongoing efforts to fix glitches in the app as well as incorporate enhancements, he stressed the built-in safety mechanisms to include always knowing the location of the driver’s vehicle and the route taken to the destination.
“If you’re on a ride too long, we know, and we call and we say, ‘hey, are you good?’” he said. “It’s to the point where if something nefarious is going on, I can just send a link to the police station and they know everything that’s happening down to like 2 seconds, like real time.”
