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Arro

Council approves Uber deal

I’d forgotten about this.

Uber

Uber will remain operating in Houston at least through the Super Bowl, after City Council approved changes to the city’s paid ride rules ironed out between the popular ride-hailing service and Mayor Sylvester Turner.

Council members, after a sometimes contentious discussion on Wednesday, approved the revised city rules for taxis, so-called transportation network companies like Uber and limo providers. The changes – which keep Houston’s fingerprint check for drivers in place but eliminates other requirements to operate here such as a mandatory drug test and physical – came after Uber indicated it would leave rather than cooperate with many of the rules.

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City officials said the changes do not compromise passenger safety, while giving Uber and taxi companies more latitude to quickly and easily enroll drivers. When Uber and other companies that connect riders and drivers via smartphone app hit the road in Houston in early 2014, city officials opted to keep many of the same requirements in place that had existed for taxi drivers. After more than two years of study, the city thinks it can roll back some of the unnecessary rules, said Tina Paez, director of the city’s regulatory affairs department.

“We are not going to be everyone’s (human resources) department anymore,” Paez said, referring to redundancies in the company’s background check and the city’s requirements.

See here for the background. This will keep Uber in town through February 5, after which they may or may not finally follow through on that threat to take their app and go home. Or they may wait and see if the Lege takes care of their longstanding complaints about Houston’s and other cities’ regulatory structure. Be that as it may, they’re here for now, so ride ’em if you got ’em.

City reaches deal with Uber

From the inbox:

Mayor Sylvester Turner

Mayor Sylvester Turner

Mayor Sylvester Turner today announced a comprehensive strategy to streamline the City’s vehicle-for-hire licensing process to ensure that Uber remains in Houston and that Houstonians and visitors have as many transportation options as possible during the upcoming Super Bowl. As part of the plan, Uber has committed to continuing operations in Houston with the use of fingerprint background checks through the Super Bowl.

“I am thrilled we can finally put this issue to rest and focus on the real task at hand—providing a great Super Bowl experience that shows off our City,” said Mayor Turner. “We’ve crafted a proposal that reduces the length and cost of a driver application but still protects public safety. This is a win for drivers and passengers alike. These changes will help make sure that visitors have a seamless experience during the Super Bowl and Houstonians have diverse transportation options to meet the growing needs of our city.”

As part of the agreement, the City will bring forward process-improvement changes to Chapter 46 of the City Code which regulates vehicles-for-hire such as taxis, limos, and TNCs (transportation network companies such as Uber). The streamlined changes will reduce the costs of licensing from nearly $200 to $70, cut the licensing process in half, and allow drivers to be licensed in under 20 minutes. The City’s policy on background checks will not change. The proposed changes are expected to come before City Council before the New Year.

Mayor Turner also announced the launch of Arro, the City’s official multimodal transportation app, which will help make the City’s fleet of over 9,000 taxi and limo drivers more readily accessible to the general public. Building on Top Taxi, Houston First’s initiative to improve the quality and customer service of Houston’s taxi industry, Arro will help transform the taxi experience in Houston.

“In a city as large and diverse as Houston, taxis and limos will always play a critical role in our transportation strategy,” said Turner. “Arro and Top Taxi will help modernize our taxi industry by making our fleet more efficient and equipping Houstonians with access to multiple forms of transportation at the push of a button.”

While initially offering taxi rides, Arro’s offerings will expand in the coming months to include limos, wheelchair accessible vehicles, and collaborations with other forms of vehicles-for-hire and METRO. Arro is available for download on Google Play and the Apple App Store.

“We are very excited to bring Arro’s consumer and driver friendly app to the people of Houston starting today. Arro’s presence is a significant step toward enhancing robust transportation options throughout Houston,” said Mike Epley, founder of Arro. “Our app has already enjoyed great success in several cities by offering a potential boost to drivers’ incomes and providing faster and easier transportation access for passengers. ”

“Houston First recognizes that reliable and safe transportation is essential to the city’s success as a destination,” says Dawn Ullrich, president and CEO of Houston First Corporation. “That’s why we launched the Top Taxi Program in 2015 to coach our taxicab drivers on delivering a better customer service experience. Now, Mayor Turner is taking it a step further with the implementation of Arro, which we believe will revolutionize the user experience with taxis in Houston. We’re excited to partner with the city on the ongoing Top Taxi program and the rollout of Arro.”

See here for the background on Arro. You may recall that Uber had threatened to leave Houston after the Austin rideshare referendum was voted down, but since those initial rumblings there hasn’t been much from either them or the city. While Council members were not lining up to support Uber in this, there was some concern expressed about the availability of vehicle-for-hire services during the Super Bowl; Arro’s development was in part a hedge against that. This agreement means that those worries can be laid to rest.

The larger fight remains unresolved, however.

The fingerprint check – as opposed to the company’s preferred Social Security number-based check – has been the major disagreement since Houston legitimized the ride providing companies in November 2014.

“Our stance hasn’t changed in any way on fingerprinting,” said Trevor Theunissen, public policy manager for Uber in Texas. “This is a compromise to improve the driver licensing process so we can get through the Super Bowl.”

The deal does not, however, slow efforts by Uber and state lawmakers to develop statewide transportation rules during the upcoming legislative session. Sen. Charles Schwertner, R-Georgetown, filed a bill Monday to create statewide transportation rules for companies like Uber, but keeps taxis regulated at the local level.

Here’s Sen. Schwertner’s statement about the city’s deal with Uber. You know, I’m old enough to remember a time when it was considered “conservative” to value local government over state or federal government, on the grounds that local government was closer to the people and thus more responsive to their needs and accountable to their votes. That just sounds so adorable now. I mean, what could we Houstonians know about our wants and needs compared to a Senator from Williamson County? So until the Legislature crushes it underneath their mighty boots, chalk up another accomplishment for Mayor Turner.

UPDATE: The Press has more.

Council approves city cab-hailing app development

Here it comes.

Houston residents soon will be able to hail a city cab via smartphone app, after City Council signed off on a plan Wednesday to consolidate dispatching in a single program.

The Arro app, already operating in New York, Boston, San Francisco and Chicago, is expected to be fully operational in Houston by the end of the month, combining dispatch for Houston’s 146 taxi companies. The city is requiring all of its roughly 9,000 licensed cab and limo drivers to participate.

“It is innovative. It’s taking advantage of technology that exists to create a centralized dispatch service,” Turner told City Council. “If you go to the airports, you’ve got cabs that are sitting there pretty much six, eight hours a day, waiting on a customer. Under this system, they can be out there servicing Houstonians. They don’t lose their place in line, and when it’s time for them to do something, they get a ping.”

Cab and limo companies had urged the city to develop an alternative to Uber, which dominates Houston’s ride market. Uber and other ride share drivers would not be included in the Arro app.

No taxpayer money will be used to develop or advertise the app, though city staff will coordinate with Arro, and elected officials could devote time to promoting the program.

Riders who use the app would pay $1.50 on top of the cab fare, and drivers would pay 50 cents for each app-generated trip, plus 3 percent of the total fare for a credit processing fee.

See here for the background. I kind of have zero expectations for this, but it does provide a needed service for independent cabbies, it’s being developed on the provider’s dime, and it’s not like it could hurt. I’ll be very curious to see what its download and usage numbers look like in a year.

The city cab app

Meet Arro.

Houston’s fractured taxi market is headed toward a rare bit of unity, with a push by the city toward how people hail cabs in the 21st century.

As the taxi and limo industry adjusts to new ways of doing business, under intense competition from firms like Uber, city officials plan to consolidate dispatching via a private smartphone app in an attempt to buoy travel options for visitors and residents.

Citing a need to better use the nearly 4,000 taxi and limo permits across roughly 9,000 drivers, city officials announced Monday that Arro, a company already combining dispatch in New York, Boston, San Francisco and Chicago, will develop a universal taxi app for Houston’s 146 taxi companies.

“We’re excited to bring the taxi industry, fully, into the digital age,” said Tina Paez, director of Houston’s Administration and Regulatory Affairs Department.

Cab and limo companies encouraged the city to develop something to even the playing field with Uber, which has dominated the ride market since arriving legally in Houston in November 2014.

“I think you will have people come to rely on faster cab service than they do now,” said Duane Kamins, owner of Lone Star Cab Company.

The app would mean all cabs could be hailed based on who’s closest, breaking the taxi reliance on downtown cab stands and airport trips that leads to bunching of vehicles and a lack of available rides in other neighborhoods. The app also provides an emergency scenario, should Uber – which opposes some of Houston’s regulations – bail right before thousands descend for the Super Bowl.

City Council is expected to discuss the app at its meeting next week.

Starting with consolidating taxi companies into a single online dispatch system, the app will eventually expand to include other features such as transit schedules, real-time traffic information and bike sharing information.

Council member Michael Kubosh, however, questioned at a Monday committee meeting why the city was entering into the app business – or even encouraging a vendor to jump in.

“If you want government intervention and you all are holding hands singing Kumbaya, I will vote for your government intervention,” Kubosh said.

No taxpayer money will be used to develop or advertise the app, though city staff will guide the process with Arro, and elected officials could devote time to promoting it.

I don’t see any problem with the city’s involvement, especially given the other features mentioned. Cabs remain a regulated utility, so there’s a pretty good argument to be made that the city should get make this kind of investment. The concerns CM Greg Travis raised about Arro’s app receiving mediocre user ratings are more worrisome, but let’s not get ahead of ourselves. It’s a good idea, and it brings independent cabbies into the fold as well. Let’s see what the beta version looks like and go from there.