Ride-sharing app company Uber can now begin charging for services after the Little Rock Board of Directors approved an emergency clause and tweaks to its transportation network companies ordinance Tuesday.
City directors last week passed the transportation network companies ordinance but failed to get enough votes to pass the emergency clause, which would have allowed ride-sharing companies to begin charging. Because Ward 4 City Director Brad Cazort moved to recess that meeting, those who voted against the emergency clause -- either At-large City Director Joan Adcock or Ward 1 City Director Erma Hendrix -- could ask the board to reconsider it during Tuesday's meeting.
Both Adcock and Hendrix changed their votes on the clause, allowing the company to begin operations.
Uber's public policy associate Dave Barmore said in an interview Tuesday that he was pleased that the company was able to sit down with city directors and iron out a compromise. Next, Barmore said, the company will begin discussions with the officials from Bill and Hillary Clinton National Airport/Adams Field and City Manager Bruce Moore to hammer out logistics of compliance with the ordinance.
"We've got a team standing by to hear from us," said Barmore, adding that he hoped to work out some of the details Tuesday night.
The ordinance put into place regulations for businesses that connect drivers with passengers.
The law sets a $5,000 permit fee for a transportation network company.
The city law also would give approved drivers 14 days to register for a free city permit. The driver would get a sign to place on the vehicle to indicate he's operating legally.
Drivers for the companies also will be insured -- $250,000 for injury or death and $500,000 liability -- when they accept a passenger until the passenger gets out of the vehicle. Uber plans to provide a $1 million commercial insurance policy.
Under the original ordinance, the drivers would be covered by their own insurance at all other times. But board members approved a change to that Tuesday.
When a driver is plugged into the app but hasn't accepted a ride, the driver must be covered by either his own insurance, the company's insurance if the driver's personal insurance doesn't provide coverage or a combination of both, according to Tuesday's adopted provision. The clarifications came at Adcock's request.
Hendrix, who also changed her vote Tuesday, had said she wanted to hear from airport officials about the ordinance.
Once the board approved the changes and the emergency clause, Executive Director Ron Mathieu addressed the board about the ordinance. He had been reluctant to work with Uber while the ride-sharing company was still negotiating with the city, Mathieu said.
Adcock inquired whether the transportation network companies would have a designated area at the airport to park, as taxis do.
"We think they should be treated the same as other ground transportation providers," said Mathieu, adding that city officials would need to come back and alter the ordinance again.
Airport officials will review how the services work in other cities and apply best practices in Little Rock, he said. Officials are also looking at fees the transportation network would pay to the airport, he said, adding that he hoped to get the updates to the board by December.
Currently, taxis pay the airport a per-trip fee of $2, and limousines and shuttles pay a flat fee of $400 per vehicle per year, for up to five vehicles.
Uber had offered its services Nov. 6 in Little Rock as a marketing strategy to familiarize residents with its service. All rides it had offered were free, Cazort said.
The move ruffled the feathers of some board members who did not like that the ride-sharing company began the services without informing city officials. But that move helped to increase the pace of negotiations to get the ordinance squared away, Cazort said.
"I welcome Uber as a new corporate citizen," he said. "And I assume they won't be the last TNC in Little Rock."
Metro on 11/26/2014