Initial reaction is not terribly receptive.
Ride-hailing giant Uber threatened Wednesday to stop operating in Houston unless city leaders amend local regulations the company said are making it tough for them to recruit drivers.
The ultimatum, the latest skirmish in what has been a contentious relationship between Uber and the city since it started operating here two years ago, drew a strong rebuke from city leaders.
“This is just not how we do business in Houston,” said Mayor Sylvester Turner, who added the city “will not compromise on public safety.”
The Uber announcement, which officials viewed as a threat to meet the company’s demands or lose the service, was met with frustration by city leaders, some of whom have grown increasingly exasperated by the tumult.
“If you don’t want to follow the rules we all agreed to, have a good opportunity in another city,” District E Councilman David Martin said. “But we cannot be blackmailed when it comes to public safety.”
Uber and its supporters argue that part-time driving for the company helps people make money while keeping rates for riders cheap.
The company in its report said drivers take an average of four months to sign up with Uber and complete the city permitting process. Houston officials said the longest a driver has waited is two months, and that the average time to clear the regulations is 11 days. About 47 percent of drivers received a license within a week, officials said.
“What they are putting out is factually incorrect,” Turner said, adding that he thought the company’s motive is to put pressure on politicians to capitulate.
See here for the background. I didn’t expect Uber’s announcement to be greeted warmly, but I am a bit surprised that no one stepped forward to defend them, or at least to criticize the fingerprint policy, in the story. CM Martin’s comment is of particular interest, since Uber’s main allies on Prop 1 in Austin are a couple of conservative Republican Council members there. I’ve look around at other coverage but have not seen any other reactions from Council members. I will be very interested to see who, if anyone, is in Uber’s corner on this. It was one thing to advocate for allowing Uber to operate here. This is a whole ‘nother level, and unless a Council member comes under pressure from constituents, it’s rather a large stretch.
The Press brings up another aspect of this fight.
Notwithstanding the curious timing (voters in Austin will decide May 7 whether to keep similar regulations; early voting for the ballot measure started this week), it’s hard to know what to make of Uber’s claims. Officials with the City of Houston insist that, by pretty much any trackable measure, Uber has been a resounding success here. The city’s Administration and Regulatory Affairs department says that every month it sees an increase in drivers who want a license to drive for the company. And, according to city officials, judging by the company’s revenue in Houston (under the regulations passed in 2014, Uber pays 2 percent of gross bookings to the city), Uber is doing quite well.
It seems there’s either fundamental difference of interpretation or someone’s not telling the whole truth. We’d love to get to the bottom of this, but here’s the problem: Uber has sued to block the city from releasing pretty much any internal data that could show whether Houston’s regulations have been a success or unreasonable burden for rideshares.
Lara Cottingham, deputy assistant director of the city’s Administration and Regulatory Affairs department, insists that Uber has had an undeniably good run here since the city began enforcing its rules for licensing drivers for so-called transportation network companies (or TNCs) like Uber, limo services and taxi companies. “The number of drivers is increasing, their revenue is increasing, everything seems to be working out for them very, very well,” Cottingham told us. “But because Uber sued us to stop us from releasing [those numbers], I can’t tell you how successful they are.”
While Uber claims it takes drivers on average four months to get a city license, Cottingham says that’s just not the case. She says that according to a survey the city conducted this spring (which, of course, she can’t release because of Uber’s lawsuit), nearly half of all drivers got their license within a week of applying – almost all (about 84 percent) had al license within three weeks of applying, she claims. Whatever the case, Uber’s Meridia said in the letter to city leaders yesterday that demand in Houston “continues to grow approximately twice as fast as our ability to onboard qualified drivers.”
Cottingham says the city has streamlined the process as much as possible, but what Uber’s really asking for – axing the city’s additional background check provision – isn’t an option.
KTRK also noted that some of the facts in dispute cannot be checked on either end. That makes this more of a PR battle than anything else. Do people, who clearly like using Uber’s service, side with them against the city and buy into the argument that needless regulation is making it impossible to operate? Or do they see the fingerprint requirement as a basic safety measure, which Uber should have no issue with complying? That seems to me to be the basic outline of the dispute, and it’s why I’m so interested in who Uber’s proxies will be in the fight. I’m sure Mayor Turner’s response to this has been along the lines of “I don’t need this $#!+ right now”. Who will be on his side? BOR has more.