Council tables Uber ordinance after company opposition

Last edited 3:41 p.m., March 23, 2016

Springfield City Council yesterday voted to table proposed new rules for transportation network companies and their drivers after an Uber representative said the ordinance would impede the company’s ability to enter the Queen City.

“I do not believe that it is council’s intent to prevent Uber from coming to Springfield, but I do want to be clear that we would not be able to operate in Springfield under the proposed ordinance,” Uber Missouri General Manager Sagar Shah said at the meeting.

The ordinance, which was drafted to protect the public while allowing the ride-sharing service to come to town, was debated heavily by council members before public speakers weighed in. Before voting 7-2 to table it, council members passed three amendments.

Councilman Craig Hosmer moved to increase insurance requirements for drivers; Councilwoman Kristy Fulnecky called for removing a rule prohibiting conceal-and-carry permitted drivers from carrying a gun; and Councilwoman Jan Fisk proposed moving the minimum age of drivers to 21 from 18.

Other requirements in the measure include requiring transportation network company drivers to obtain a permit from the city’s director of finance, prohibiting licensed taxicab drivers from operating TNC vehicles and delivering all lost or misplaced materials in TNC vehicles to the police department.

Shah said the 35-page ordinance, which also would update requirements for taxicab and airport-limousine permits, would harm its drivers, most of whom work part time to make extra money.

“The model really relies on a lot of people doing a little bit at a given time,” Shah said, adding driver backgrounds vary greatly. “This includes students who might have time between classes, parents who might drop their kids off at school and sign on to Uber during the day and school teachers looking to add some additional income in the summer months.

“So for this model to be successful, the burden of regulation really should be put on the company and not the driver.”

Springfield is among four new Missouri markets Uber is seeking to enter, including Jefferson City, St. Charles and St. Joseph. The company already operates in Kansas City, St. Louis and Columbia. First launched in 2009, Uber connects riders and drivers through its app – so no street hailing, and drivers own their vehicles – and operates in over 300 cities.

Shah said 28 states have passed laws that allow the company to execute its business model. Legislation working its way through the General Assembly in Jefferson City is less restrictive and supported by Uber. Following the meeting, Shah said he hoped to work with city staff should they want to forward Uber’s plans to serve the Queen City.   

Four public speakers expressed support for Uber coming to Springfield.

Deborah Cohen, director of meeting and convention sales for the Branson/Lakes Area Convention and Visitors Bureau, said over 20 percent of the area’s convention visitors fly in through Springfield-Branson National Airport, and an Uber option could help the CVB land more group meetings.

Springfield attorney Britton Jobe, a partner with Neale & Newman LLP, also expressed a desire to see Uber serving the local market.

“Speaking as a young professional in this community – I’ve been practicing law in Springfield for six years – it is difficult to exaggerate the importance to people in my generation to talent attraction and retention efforts in this community,” he said.

Councilman Craig Fishel moved to table the ordinance for further review after hearing Shah and the public speakers. Mayor Bob Stephens and Councilman Hosmer voted against tabling the measure.