Ride-sharing service Uber launches in Butte

Aug. 04--Butte residents may soon see Uber cars zipping around the Mining City.

Uber is a phone-based application that helps connect passengers with drivers who work as independent contractors using their personal vehicles. To drive for Uber, drivers must pass a background check, get an auto inspection and submit proof of insurance.

The ride-sharing service -- which launched in Montana Monday -- hosted a local kickoff event Wednesday night at Metal's Bar and Grill in Uptown Butte.

During the event, the city's first ride-share driver took his maiden voyage, proudly displaying his Uber placard in the windshield of his GMC Terrain.

"I just thought I'd be able to offer the service for the community," 74-year-old Michael Gribben told The Montana Standard.

Brian Gebhardt, Uber's Montana general manager, said the rollout had a "drivers' apparition theme" befitting of the Mining City.

"The city has a history of respect for hard work," said Gebhardt, adding that residents can now get a ride "at the touch of a button"

Les Chagnon is another Butte resident who signed up as an Uber driver.

He attended the Wednesday-night event and was Gribben's first passenger -- Uber spokespeople are calling him "Butte passenger zero."

Chagnon said Uber gives people more variety when it comes to transportation.

"I look at it as an opportunity to help provide to the people of Butte another option," he said. "I think it's a very progressive step forward."

Kunle Ogunsakin, meanwhile, is a graduate student from Nigeria studying in Montana Tech's environmental engineering program.

Although he hasn't signed up as a driver, he's used the service before -- "It's really cheap," he said -- and plans to use Uber locally.

While Gebhardt didn't describe the service as "cheap," he said that rides will cost a minimum of $6.50. The cost, he said, will consist of a $2.50 base plus a $1.75-per-mile rate and 25-cents-per-minute rate.

Although Uber's presence in the state is underway, Montana Senate Bill 396, the law that made ride-sharing legal in the state, passed over a year ago.

When asked what caused the delay in service, Gebhardt said it was a result of strained resources.

"The team that we had got deployed to larger markets," he said.

However, the Bozeman Daily Chronicle reported in July that Uber's delay had to do with an investigation by the Montana Department of Labor as to whether drivers would be classified as independent contractors. As the article notes, the distinction is important because it gives independent contractors rights like entitlement to workers' compensation.

But Montana Department of Labor Communications Director Jake Troyer said by email that the department had nothing to do with the delay.

"The Montana Department of Labor & Industry has not delayed Uber launching their business in Montana. The first contact by Uber to the Department was May 2016," wrote Troyer, noting that no investigation took place.

He went on to say that drivers' classification "will be analyzed according to Senate Bill 396 and relevant Montana law" and that "the Department has encouraged Uber to approach the 2017 Montana Legislature and address this status issue directly with lawmakers."

Gebhardt echoed Troyer's sentiments, adding that "we believe strongly that drivers are independent contractors."

Another stumbling block for prospective Uber drivers was confusion regarding insurance.

According to SB 396, insurance companies are not required to insure Uber drivers, and if a driver's policy does not include using a vehicle for commercial purposes, the insurer is not responsible for any damage that occurs while the Uber app is tuned on.

"The law gives great discretion to the insurance industry," said Jesse Laslovich, chief legal counsel for the Montana State Auditor's office.

However, drivers will not need to rely on their personal coverage in order to be insured while they drive for Uber.

As Gebhardt pointed out, drivers are insured by Uber while they are using the ride-sharing app.

He added that an outline of Uber's insurance structure can be found on the company's website, www.uber.com.

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(c)2016 The Montana Standard (Butte, Mont.)

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