LR board questions ride-share firm's exec

Ride-sharing company Uber has not begun operation in Little Rock yet, despite seeking and qualifying drivers here, a representative told the Little Rock Board of Directors at a special work session Tuesday.

Some directors were receptive of the company that facilitates rides between contracted drivers in their personal vehicles and customers using the Uber app, but others said they aren't happy with the way Uber representatives have communicated with the city in recent months. The company didn't notify the city before posting job advertisements for drivers here.

The Board of Directors didn't say whether it wants to pave the way for companies like Uber to legally operate in the city, but Mayor Mark Stodola asked the city attorney to work with Uber to prepare an ordinance that would regulate and allow such businesses to operate in Little Rock.

Uber's Senior Public Policy Associate Dave Barmore fielded numerous legal questions related to the company's potential operation here. He said he'd have to get back to the board after verifying information with his legal team, but was chastised by At-large City Director Joan Adcock for not bringing an attorney to the discussion-only meeting Tuesday.

Adcock and City Attorney Tom Carpenter took issue with the company saying it's not operating in Little Rock, pointing out that in their view advertising for drivers amounts to operating.

Uber has approved drivers in the area and sent them company-issued iPhones, according to a confirmation letter obtained by the Arkansas Democrat-Gazette that the company sent to an approved driver. But with the app not being activated, drivers and potential customers aren't able to actually offer or accept rides as of yet.

Barmore said the company has seen high interest in its app in Little Rock.

"We have seen over the summer people landing at the Clinton International Airport opening up our app only to find we aren't operating. We can track that demand," he said.

Directors wanted to know what the company's insurance covered, whether it would share its criminal background checks on drivers with the city, if it would agree to pricing regulations like the taxi cab industry does and whether the company was registered to operate in Arkansas.

Ward 4 City Director Brad Cazort noted that a check of the Arkansas secretary of state's website does not list Uber as a registered company.

Barmore explained the company's surge pricing technique, which increases ride fares when demand is high and supply is low, and said he'd have to see if it could legally share its background check results with city officials. Uber has a $1 million insurance policy that covers drivers and riders while the driver is en route to pick up someone and the entire time the passenger is in the car.

Taxicab companies in Little Rock are required to have a $500,000 coverage policy. Greater Little Rock Transportation Service, which operates as Little Rock Yellow Cab, has been the only taxicab company in the city for some time. Owner Ellis Houston said he doesn't consider Uber his competition, but he takes issue with the company not being made to adhere to the regulations required of his drivers.

He suggested Little Rock adopt strict guidelines like Houston recently passed regarding companies like Uber that mandated FBI background checks, vehicle inspections, that a certain percentage of vehicles are wheelchair accessible and a number of other measures.

Barmore said Uber has agreed in some markets to require that their drivers show proof of a 19-point vehicle inspection by an accredited inspector within six months. Little Rock currently mandates that cabdrivers have their vehicles inspected by the city.

Ward 5 City Director Lance Hines said Little Rock Yellow Cab is a monopoly and that more competition would be good for Little Rock, noting that he has had negative experiences with the cab company.

John Hanson, president of Little Rock Limousine, also spoke before the board Tuesday, saying he wants to make sure Uber and similar companies operate under the same requirements he has had in regards to compliance with the city's transportation codes.

Many directors noted that the codes are outdated -- about 15 years old -- and Stodola said the current conversation could prompt those to be changed or updated.

Cities around the country have found themselves in legal battles with Uber, which many governments say is operating illegally in their towns.

In Fayetteville, police have issued traffic citations to four Uber drivers so far and have set up sting operations posing as customers. In each case, the driver was cited for operating without a taxi permit (a $70 fine), operating without public convenience and necessity (also a $70 fine) and operating without taxi inspection decals (a $45 fine).

Uber spokesman Taylor Bennett said by email Tuesday that the company "fully stands behind our driver partners and will cover the costs of any unjust citations."

Barmore told the Little Rock board that Uber "wants to work with you to create a system with the least amount of friction."

Metro on 09/24/2014

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