
Bad news for Uber. Yesterday, the D.C. Taxicab Commission passed new regulations that will have some serious effects on uberX—Uber’s new low-cost venture that uses mid-sized, fuel efficient vehicles instead of luxury sedans.
Since launching uberX, the DCTC has been hard at work trying to shoot it down by introducing new regulations that would change the loose definition of a sedan. And they succeeded. According to the DCTC, here’s what the new regulations regarding sedans include:
The characteristics to define sedan vehicles include: an L Tag; prohibition from accepting street hails; no meter; and specific size and color limits. The uniform color adopted is a red with a gray stripe along both sides to include company name, logo and contact information. The transition to the uniform color will initially occur for equipment replacements due to age, mileage or DMV inspection rejection.
Basically, this means that the mid-sized hybrid cars, like a Toyota Prius, that uberX utilizes no longer complies with the DCTC regulations. Uber D.C. General Manager Rachel Holt tells DCist that they’re “disappointed” with the DCTC’s new regulations and feel that “this is not the best decision for consumers.”
So, is this the end for uberX? Not exactly. Holt says that they’re “still figuring out what exactly it means,” and that they’re “going to be exploring our options aggressively.” Uber has been pushing back on the proposal for these new regulations for months and have “submitted public comments at every single turn,” Holt says. Councilmember Mary Cheh (D-Ward 3) —a big supporter of Uber—even wrote a letter to DCTC Chairman Ron Linton, asking him and other DCTC officials to not change regulations that would prohibit uberX. Which makes it all the more disappointing for Uber because all of it was basically ignored. “We have made it clear that these regulations do not serve any sort of public policy service for the city,” Holt says, “And we’re really disappointed that those comments weren’t listened to.”
Although the DCTC ruled that it would “not be appropriate to add in the Prius or other basic, economy cars” into the definition of a sedan, it did list that there are alternatives:
First, despite the expansive definitions, which were substantially modified in response to prior comments, both Veolia and Uber complain that the rule would improperly exclude energy efficient vehicles, and both suggest that compact vehicles like the Toyota Prius should be included. We strongly disagree. First, the sedan definition would include more than 40 hybrids and alternative fuel vehicles, just among the EPA sedans, and not including any qualifying SUVs, nor any vehicles able to use alternative fuels.
When asked if uberX could utilize any of these vehicles instead of their fleet of Prius’ and other hybrids, Holt said, “Mid-sized cars, by definition, are more fuel efficient than bigger cars. You can cut it any way, but the reality is they don’t want cars that can run efficiency.”
Although the future of uberX at the moment doesn’t look too good, Holt maintains that it’s not going anywhere and that they’ll find a way to make it work: “Consumers want Uber in D.C. We’re going to fight for that.”