Council addresses Uber concerns voiced by local taxi companies 

City does not have jurisdiction to regulate/outlaw the ride-sharing company

On Tuesday night, the Paso Robles City Council reviewed a report on Uber after local taxi drivers raised concerns over a new ride sharing service at a March city council meeting. The taxi drivers complained Uber is an unregulated business in direct competition with local taxi services. Uber, which started operating in Paso Robles about a year ago, is a smartphone app that allows consumers to submit a trip request which is then routed to drivers. As of last month, the service was available in 58 countries and 300 cities worldwide.

Currently, California law recognizes three modes of passenger transportation for compensation:

1. Taxi services
2. Charter-party carrier services
3. Passenger-stage companies

The state delegates authority for regulation of taxi services to cities and counties. Presently, the city’s taxi ordinance requires local taxi drivers and owners to obtain a written permit before operating within the city.

The permitting process provides city discretion over permit approval and denial, and imposes fingerprinting and insurance requirements, among other things. The city taxi ordinance does not directly address or regulate Uber drivers operating in the city.

The California Legislature recently classified Uber as a sub-category of charter-party carriers. According to City Attorney Iris Yang, that classification puts Uber under the control of the Public Utilities Committee, meaning that the city would have no way to outlaw Uber from operating.

Mayor Steve Martin asked if it was true that other cities have outlawed Uber, and Yang said that currently, no cities in California have successfully outlawed the company, nor do they have the jurisdiction to, as they are solely regulated by the Public Utilities Committee.

The committee, has, however, imposed a number of new rules for operation for the company, including:

• Insurance requirements
• Background checks
• Training programs
• Zero-tolerance drug and alcohol policies
• Licence requirements for drivers

Yang told the council and the public that Uber is still a very new thing, and that the state is still in the process of determining regulation for the company and concept.

The council chose to unanimously accept and file the report, and will monitor future state actions regarding the issue.

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