Nebraska Public Service Commissioner Anne Boyle said she’s never seen companies as arrogant and unwilling to follow the rules as Uber and Lyft, two ride sharing services attempting to enter the Omaha market.
The transportation companies appear to have plans to launch in Omaha, but have not yet applied to the Public Service Commission (PSC) to operate as a “licensed carrier.”
To this point, the general argument from both Uber and Lyft has been that the companies aren’t taxi services and don’t need to follow Public Service Commission rules. Instead they claim they are technology companies that helps connect private, individual drivers with private cars and those that need a ride through their apps.
The Commission met Tuesday to discuss the services after it sent both companies cease and desist orders Monday, telling Uber and Lyft they are not allowed to operate in the city and need to stop advertising jobs.
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“If they want to argue they aren’t transportation for hire, then that’s up for discussion,” Boyle told Silicon Prairie News. “We can have that conversation in court.”
Boyle said the Commission won’t “close our eyes and pretend they aren’t doing this.”
“We are here to make sure we cover the public so they don’t become victims,” she said.
Boyle has called Omaha Mayor Jean Stothert asking for police assistance in citing drivers and also alerted hotel industry reps to tell travelers to beware of the service.
“If passengers are in the car when these unlicensed drivers get pulled over, cited and cars impounded, they might not get to their destination,” Boyle said.
Uber and Lyft have not announced any plans to launch in Omaha, but have advertised for driver openings. Boyle (right) said Lyft had a lawyer come in to speak with the Commission, but so far Uber has not responded.
The commissioner said she’d be more than happy to listen to the companies if they come in and operate as they should in Nebraska, but she wants to know more about their insurance, vehicle and background check processes first.
“We don’t know how they do it and they need to come in and explain it,” she said.
She cited several causes for concern, including a six-year-old who was killed by an out of service Uber driver in San Francisco—Uber has since expanded its insurance policy to cover such incidents. She also cited cases of alleged sexual assault and threats toward passengers after giving drivers bad ratings.
She also was upset with the way Uber handled discourse in Houston when the city attorney told Uber to stop sending emails and petitions to the city.
“They’re arrogant,” Boyle said. “You have to comply with the laws of the government and if they don’t like that, they can go operate in a different country.”
Fellow PSC Commissioner Tim Schramm (left) was concerned about “surge pricing”—meaning prices increase during peak demand times—that would be illegal in Nebraska, he said. Schramm also pointed to the ability for passengers to dispute prices if the companies keep customers’ cards on file.
He said he believes the company has a poor track record of being in compliance in other parts of the country.
“I’m not even sure if they have made attempts to come into compliance in other places,” he said. “We’re not here to stop businesses, but to make sure they comply with rules, regulations and state statutes on the books.
“The ball is in their court.”
The commissioners said the companies have two options: follow the rules, file an application and follow the process that could take up to six months. If they don’t, drivers will be fined and cars impounded.
“They’ll get their cars back when we say they can,” Boyle said. “And it’s not going to be the next day.”
PSC rules state that drivers could also face a Class IV misdemeanor, which brings a $100-$500 fine.
For now Boyle says she understands the popularity of the services like Uber and Lyft, but she hopes they follow Nebraska’s laws.
“It would be a good business and an attractive service,” she said. “I understand why young people think it’s cool, but if someone is harmed, the world looks different.
“Our job is protect the public and vet (these companies).”
Mark Breiner, who oversees transportation for the PSC, said it’s not a prosecution of Lyft or Uber.
He also said the Commission has never said they don’t want them to operate in Nebraska. They just want them to follow the rules.
“This isn’t because we don’t like them (Lyft or Uber), that’s just what state law requires us to do,” he said.
Individuals are also violating the same rules, he said. The Commission recently ticketed a driver who was operating independently in downtown Omaha and did not have authority to transport people commercially nor did he have correct PSC license plates and insurance on file.
In order to get up and running in Nebraska, a company must pay a $300 application fee for authority, a $100 fee to register their rates with the commission and an annual $50 fee per vehicle, Breiner said.
This is a developing story. We’ve reached out to Uber and Lyft officials for comment. Stay with Silicon Prairie News for updates.
For more on Uber and Lyft’s controversial arrival in Omaha, read our earlier coverage: “Lyft, Uber face regulatory hurdles as Nebraska launch approaches.”
Credits: Photos from Nebraska Public Service Commission.
