High-tech or taxi? County pledges to go after Uber drivers - Insurance News | InsuranceNewsNet

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August 12, 2014 Newswires
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High-tech or taxi? County pledges to go after Uber drivers

Jennifer Sorentrue, The Palm Beach Post, Fla.
By Jennifer Sorentrue, The Palm Beach Post, Fla.
McClatchy-Tribune Information Services

Aug. 12--WEST PALM BEACH -- Uber, a popular ride-sharing service that touts its low rates, is in violation of Palm Beach County's vehicle-for-hire rules and its drivers could face hefty fines if they are caught operating here, county officials warned this week.

Uber announced Thursday that it was expanding its app-based service to West Palm Beach and Fort Lauderdale with prices that are 27 percent less than a taxi. The service allows users to tap the app on their smartphone to call for a vehicle, which can be anything from a swanky-looking limo to a regular car. They say they'll get there in minutes.

County officials, however, say Uber and its driver partners are not licensed to operate here. Uber drivers that provide rides for people in Palm Beach County could be fined more than $500 a day and have their vehicle impounded, said Eugene Reavis, manager of the county's Consumer Affairs Division.

"Uber, right now, they are operating illegally in Palm Beach County," Reavis said. "They just seem to want to bypass the rules and regulations."

The county says it closely regulates vehicles-for-hire to protect the safety of residents and visitors. Drivers are required to have permits, pass background checks and carry additional insurance. Taxis and other vehicles that are older than seven years or have more than 350,000 miles must be inspected twice a year.

Uber spokesman Taylor Bennett said the company is technology-based, provides a platform linking drivers and passengers. It doesn't doesn't own vehicles or employ drivers, he added.

"The regulations that are in place, they don't apply to a technology company," Bennett said. "They don't make sense. ... Our hope is to work with (local) officials to modernize those regulations."

Efforts to restrict the company's operation here only hurt residents, Bennett said.

"Any attempt to take away a safe and reliable way to move around town, that only hurts the consumers," Bennett said.

Uber says all of its driver partners must undergo the company's rigorous screening process, including passing a stringent background check, a driving history check and ongoing quality controls.

Uber's driver partners are required to have four-door, full- to mid-sized vehicles that are no more than 10 years old, Bennett said. The company also has its own commercial insurance policy that covers drivers and passengers, Bennett said.

Since Uber announced its expansion last week, the county has received many complaints from taxi drivers and other vehicle-for-hire companies frustrated that the ride-sharing company is not following county regulations, Reavis said.

"It is an outcry," Reavis said. The county is trying to identify and cite Uber drivers, he added.

Bennett said Uber will pick up costs for drivers who are cited.

"Any legal or financial costs, we will cover," Bennett said. "These drivers are making a living. When you take that away you are taking away their livelihood."

___

(c)2014 The Palm Beach Post (West Palm Beach, Fla.)

Visit The Palm Beach Post (West Palm Beach, Fla.) at www.palmbeachpost.com

Distributed by MCT Information Services

Wordcount:  499

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