Uber’s future in Broward unsure

Compromise doubtful as ride service pulls out

Broward County had hoped to blaze a new trail, as only the second community in Florida to pass a law legalizing modern ride-hailing services such as Uber.

But the effort collapsed this week, when Uber announced it will pull out of Broward at month’s end, frustrated by what it said were some of the most “onerous” and “hostile” regulations in America.

The announcement was met with disappointment and disbelief. As the Uber-adoring public pummeled Broward County leaders in emails and online commentary, a majority of county commissioners Tuesday defended the laws, casting doubt on the prospect of a resolution.

The key points of contention — county registration of drivers, county-run background checks and driver fingerprinting — will remain in place for now. Even if compromise is eventually met, the law Uber objects to can’t be changed before July 31, the date

Uber said it will cease picking up passengers in Broward.

Broward commissioners are on summer break until Aug. 11.

“Uber throws tantrums like kids,” said Commissioner Barbara Sharief, who is a mother of five. “They’ve been boasting they’ve given 1 million trips in 10 months. ... I’d be surprised if they even stop [the Broward service] for a day.”

The California-born company was valued in December at $40 billion and reportedly is now eyeing a $50 billion valuation. It has sparked philosophical debates — and legal fistfights — across the world in its five years of service as it balks at government regulations on taxi services.

Governments typically set cab fares, limit the number of cabs, issue chauffeur’s licenses to drivers and require vehicle permits.

But in April, by unanimous vote, Broward County became one of only 50 jurisdictions in America to pass a modernized taxi law specifically tailored to transportation network companies such as Uber.

Uber’s drivers use their personal vehicles, often in their spare time from another job, and they are connected to passengers via a smartphone based app.

Broward’s law allows Uber to have unlimited vehicles, and does not set its fares.

A second law, passed in April, required fingerprintbased background checks of drivers, including taxi drivers. It passed 6-3, with Commissioners Beam Furr, Stacy Ritter and Chip LaMarca voting no.

Uber officials say the requirements are bureaucratic obstacles to drivers who might otherwise be willing to sign up. The Uber business model is based on hundreds or even thousands of drivers signing up, so that at any given time, there are sufficient numbers of drivers on the roads ready to pick up passengers.

Broward officials attempted to make registration easier, setting up an online form at their broward.org website and promising fingerprinting drives around the county.

Uber officials said they want to do their own background checks. However, the company’s criteria for acceptable criminal backgrounds for drivers are less strict than the county’s.

Uber also objects to its drivers’ names being in the public record, which would be the case when they registered for a county license.

Before Broward enacted its laws, Orlando passed Uber-tailored legislation. No other Florida city or county has done so.

In a letter to the county sent Tuesday, general manager Kasra Moshkani, for Uber South Florida, said the decision to leave was “extremely difficult and one that we do not take lightly.’’ But he left open the possibility of a return.

Uber will continue serving passengers on the bordering counties of MiamiDade and Palm Beach counties, and will continue dropping off passengers in Broward. And, according to Moshkani’s letter, it will continue negotiating with Broward.

In addition, Uber urged customers via email to sign a petition and to reach out to county commissioners pleading for a law change.

“It is our hope that this does not mark the end of our time serving the Broward community,’’ Moshkani’s Tuesday letter to the county reads, “and that the Commission will reconsider its approach to [Transportation Network Company] legislation.’’

“They are pushing to be in Broward County,” said Commissioner Furr, who hopes for a resolution could be brokered. “No two ways about it.”

Furr said he thinks the county and Uber can come to terms in the fall, but thought Uber was “somewhat pushed to the brink’’ when commissioners voted in June to allow the county attorney to pursue legal action against companies operating in violation of the new law.

That vote was 7-2, with commissioners Chip LaMarca and Marty Kiar voting no.

Commissioners also voted 8-1, with LaMarca voting no, in another June meeting to increase fines for violators up to $1,000 per day.

Broward Mayor Tim Ryan said he thought Uber’s announcement of a withdrawal here could be “political and legal maneuvering’’ aimed at sending a signal to Palm Beach and Miami-Dade counties. Both are entangled in the issue as well, and could be swayed by the “shock value,’’ Ryan said.

Palm Beach County in March approved a temporary measure allowing Uber to keep operating until September. Since then, county officials and Uber representatives have been working on proposed changes to local vehicle-for-hire rules that could accommodate the popular ride-scheduling service.

“Uber wants less regulation,” said County Administrator Robert Weisman, who has been negotiating with Uber. “The [County Commission] is going to have to decide if they are willing to go along with that.”

Uber argues that its ridescheduling, smart phone app shouldn’t be subject to the same local fees and regulations as taxi or limousine companies that own fleets of vehicles.

Palm Beach County’s push for more extensive criminal background checks for Uber drivers as well as opposition from taxi and limo companies to special rules for Uber are among the potential sticking points to getting a deal in place by September.

Yet Palm Beach County Mayor Shelley Vana, who heads the County Commission, said she expects the county and Uber will be able to reach a compromise.

“We need to make sure it is safe,” Vana said. “You can’t run away from technology.”

Miami-Dade County officials haven’t voted on a new law yet.

Taxi drivers there held a mass demonstration in recent weeks, and attorney Ralph Patino said he filed a class-action suit in federal court earlier this year on behalf of the 2,100 taxi medallion holders. He says that Uber and Lyft, another appbased, ride-hailing service, have devalued taxi drivers’ medallions.

“We are all about free enterprise and competition,” Patino said, “but we can’t possibly compete with companies that do not abide by the same rules and regulations that we have to abide by.”