(Photo by Phae)Uber’s massive email, phone and Twitter campaign in opposition to a D.C. Council measure that would have implemented a price floor on the upscale livery service paid off this afternoon in the form of another amendment that effectively permits the company to continue operating in D.C. with no changes.
Councilmember Mary Cheh (D-Ward 3), in hopes of pulling Uber out of its murky legal status with the D.C. Taxicab Commission, had floated an amendment to the comprehensive taxicab modernization bill that would have defined “sedan-class” livery services as cars that charge no less than five times the $3 flag drop used by standard taxis. Uber, which features a minimum fare of $15, ardently opposed Cheh’s measure, despite her insistence that it had been negotiated with the company “in good faith.” Earlier today, Cheh said she would save the amendment for a later legislative session.
After being flooded by phone calls, emails and tweets in defense of Uber, several councilmembers proposed a new amendment, one that exempts the company from regulation without demanding any change in its practices:
For the purposes of this subsection, a business that uses a mobile phone application to connect its users to sedan service shall be exempt from regulation by the Commission, including the fares charged by the business, provided that: (1) an estimated fare is available to the user when the application is used to book a sedan; (2) the method for calculating the fare structure is provided by the business to the user of the mobile application prior to booking a sedan; (3) upon completion of the trip, the customer is provided a receipt that lists the pick-up point, drop-off point, and total fare paid; (4) the business providing the mobile application uses sedans that are licensed.
As written, the amendment’s description of a business that uses a mobile application to hire a livery sedan defines one company—Uber.
The measure was introduced by Jack Evans (D-Ward 2), Tommy Wells (D-Ward 6) and At-Large independents David Catania and Michael A. Brown. Kenyan MacDuffie (D-Ward 5), was the first to join their position. Other members of the Council, especially Marion Barry (D-Ward 8), were hesitant to grant Uber the ability to operate free of regulation while regular taxis continue to be a heavily monitored industry.
A proposal to sunset this amendment on December 31 was agreed to by its sponsors. The measure was then adopted by a nearly unanimous voice vote, with only Jim Graham (D-Ward 1) opposing it. With the passage of the broader taxicab modernization bill, Uber will be able to charge its in-house rates free from the oversight of the D.C. Taxicab Commission at least through the end of the year.
Reached by phone in California, Uber CEO Travis Kalanick sounded pleased by this development, though he was hesitant to make a “premature celebration.”
