In an era where the sharing economy is thriving, the concept of car sharing services has gained significant momentum. This model of car rental allows users to hire vehicles for short periods, often by the hour. For UK-based operators, compliance with all national transportation laws is absolutely essential. In this article, we’ll walk through the detailed steps a car sharing service should take to abide by the law, focusing on five key areas: driver qualifications, vehicle standards, customs and export regulations, driving time regulations, and goods transportation rules.
Driver Qualifications
To begin, let’s consider the people behind the wheel. A car sharing service needs to ensure that their drivers meet all necessary qualifications as set out by UK law.
The most basic requirement is a valid driving license. All drivers must be in possession of a full UK driving license, and they must have passed the original driving test. In addition, drivers who are not UK nationals need to provide a license issued in their home country along with an International Driving Permit (IDP). It’s important to note that while a provisional UK license allows a person to drive, it’s not suitable for a car sharing service.
Further, for drivers who will be transporting goods or driving minibuses and buses, a Driver Certificate of Professional Competence (CPC) is mandatory. The Driver CPC initial qualification involves a theory and a practical test, and drivers need to complete 35 hours of periodic training every 5 years to keep their Driver CPC.
Moreover, all drivers should be vetted for any criminal record. This is not a legal requirement, but a business decision that can help protect the reputation of the service, and the safety of the passengers.
Vehicle Standards
Moving on, it’s time to focus on the vehicles themselves. UK law requires all vehicles to be roadworthy, meaning they must meet minimum safety and environmental standards.
Primarily, every vehicle in your fleet must pass the annual MOT test if it’s over three years old. The test, which stands for Ministry of Transport, checks various aspects of a vehicle’s safety, including tires, brakes, and lights. Compliance with emission standards is another crucial part of the MOT test.
In addition to the MOT, a regular check on the vehicle’s condition is required, focusing on elements like the battery, fluid levels, and general cleanliness. As a car sharing service, it’s also wise to install an original equipment manufacturer (OEM) part in case of replacement, as they are often more reliable and safer.
Customs and Export Regulations
As your car sharing service expands, you may consider sourcing vehicles from outside the UK. In such cases, understanding customs and export regulations is extremely crucial.
When importing vehicles, duties and taxes are often applicable. To determine if duties apply and how much they will be, you’ll need to classify the vehicle using the appropriate commodity code on the UK Trade Tariff. If you’re unable to classify the goods yourself, you can hire a professional to do that for you.
Remember to file a C88 Single Administrative Document (SAD) and an E2L form to declare to customs that the goods are EU status. Also, you need to get a pdf of your transport documents to be uploaded to the National Export System (NES).
Driving Time Regulations
UK law has specific regulations related to driving time, designed to prevent accidents caused by tiredness and fatigue. For operators of a car sharing service, it’s important to enforce these rules strictly.
According to the UK’s domestic rules, a driver cannot drive more than 10 hours in a day on public roads after an off-duty period of 10 hours. Drivers are also required to take a break of at least 30 minutes after a driving period of 4.5 hours.
For long distance commercial trips, the EU’s regulations apply: a driver can’t drive more than 9 hours a day, which can be extended to 10 hours twice a week. Also, drivers must take an 11-hour daily rest, which can be reduced to 9 hours three times a week.
Goods Transportation Rules
Lastly, if your car sharing service includes the transportation of goods, you must adhere to specific goods transportation rules.
If your service operates vehicles weighing 3.5 tonnes or more, or vehicles that carry 9 or more people, you’ll need a goods vehicle operator’s license. This entails a fair process, during which your financial standing and professional competence will be assessed.
Moreover, you should keep in mind the UK’s weight limits for goods vehicles. Failure to comply with these rules can result in penalties. Always ensure that goods are safely loaded and remain secure throughout the journey.
Compliance is all about due diligence and staying up to date with the latest regulations. It’s the backbone of a successful car sharing service, ensuring smooth operations and the trust of your customers.
Data Protection and Privacy
A vital aspect of operating any modern service is the protection and privacy of user data. For a car sharing service, this involves handling sensitive information such as driver licenses, credit card details, and location data.
To operate legally in the UK, your car sharing service needs to comply with the General Data Protection Regulation (GDPR), which has been integrated into UK law post-Brexit. Complying with data protection rules is crucial for maintaining trust between you and your customers.
Data should be collected for a specific purpose, used fairly and not disclosed to any unauthorised third parties. This is especially important when using a mobile app, where users often provide their personal information during registration and use.
Car sharing services must also implement secure systems to protect data from potential threats. This could include using encryption, secure servers, and training staff to handle data responsibly.
You must also respect your users’ rights under GDPR. This includes their right to be informed about how their data is being used, their right to access their data, and their right to erasure.
In case of a data breach, you must report the incident to the Information Commissioner’s Office (ICO) within 72 hours. A severe breach can result in hefty fines, so it’s in your best interest to protect your customers’ data effectively.
Public Transport Collaboration and Metropolitan Area Expansion
As your car sharing business grows, entering into partnerships with public transport providers can be beneficial. This will allow you to extend your services to wider metropolitan areas and provide integrated, multimodal transportation solutions.
By collaborating with bus services, you can offer a more comprehensive service that meets the needs of customers who rely on multiple forms of transport. For instance, a user might hire vehicles from your service for part of their journey, then switch to a bus for the remainder.
A case study that illustrates this is DriveNow, a car sharing service that was active in London until 2020. They partnered with Transport for London to have their vehicles included in the city’s official travel planning app. This allowed users to view car sharing options alongside public transport routes, making it easier to plan a journey that utilised both services.
In terms of regulatory compliance, you may need to obtain additional licenses to operate in certain metropolitan areas. In London, for example, private hire vehicle operators need to obtain a license from Transport for London. You should investigate the specific requirements in the areas you plan to expand into.
Being a part of the sharing economy, UK-based car sharing services have the potential to reshape urban mobility. However, to operate successfully and responsibly, they must comply with applicable transportation laws.
This involves ensuring driver qualifications, maintaining vehicle standards, understanding customs and export regulations, adhering to driving time regulations and goods transportation rules, protecting customer data, and considering potential partnerships with public transport providers for metropolitan area expansion.
By diligently attending to these details, your car sharing service can provide a valuable and legal alternative to traditional vehicle ownership and contribute towards a greener, more efficient transport system in the UK.
