UberX launches in Omaha despite legal scrutiny, potential for tickets

UberX drivers are now on the road, despite cease-and-desist orders from state regulatory agencies. The ridesharing service, which uses an app to connect private vehicles and drivers with those needing a ride, launched Tuesday, after a soft opening over the weekend.

Former Creighton basketball player Doug McDermott was UberX’s “rider zero” in Omaha. 

UberX drivers are now on the road, despite cease-and-desist orders from state regulatory agencies.

The ridesharing service, which uses an app to connect private vehicles and drivers with those needing a ride, launched Tuesday, after a soft opening over the weekend.  

Creighton basketball player and Naismith College Player of the Year, Doug McDermott, was Uber’s “rider zero” and unofficial spokesperson for its Omaha branch, according to the company’s blog

Uber is offering 10 free uberX rides for each account with promo code “OmahaX,” good through May 19. 

Ride costs begin at a 50 cent base fare, in addition to $0.45 per minute and $1.65 per mile. The service also tacks on a $1 “safe ride” fee that goes toward expenses like insurance and background checks. For instance, the five-mile ride from Omaha Eppley Airport to the downtown Old Market would be about $14.25.

The launch comes a week after Uber’s competitor Lyft launched in Omaha to great fanfare. The services have had a warm social media reception, but face scrutiny from the state’s taxi regulators, the Public Service Commission, the state insurance director and the DMV.

Lyft, which begins charging for rides Thursday after its two week free trial, will likely face up to $500 fines and vehicle impoundment, according to PSC rules. If uberX is charging, they also will face tickets.

Omaha and Lincoln police have promised tickets to drivers taking money for the illegally operating rideshare services. Officer Michael Pecha, a spokesperson for the department, says the Omaha Police will enforce the city’s law.

“I do not have any other information right now about if we are going to actively pursue these operations, or if we will only respond to complaints,” Pecha said.  

The Public Service Commission said the companies must apply to serve in Nebraska as a licensed carrier, but Lyft and Uber argue they are a technology company that connects private drivers and vehicles with those that need a ride through their apps. The companies say they are not taxi services.

Meanwhile, Omaha Chamber President David Brown sent a letter to the PSC last week asking them to come up with a solution to allow the services to operate.

Uber, which has been a popular black car in San Francisco and New York, was started because of the inefficiencies in the transportation system, says Chris Natukis, an Uber regional manager for the Midwest. 

“Our founder saw limo drivers that would drive a CEO to airport and then do nothing for six hours and then pick someone else up,” he told Silicon Prairie News. “They were sitting in a parking lot or coffee shop, but only making money when wheels are moving.

“So they wanted to create a system where it fills the gaps and is more effective.”

UberX, the company’s lower-cost alternative with more pedestrian vehicles, has infiltrated smaller markets like Milwaukee, Madison, Wisc.; Tulsa, Okla.; Oklahoma City, Indianapolis and St. Louis. With those others in mind, Omaha was a good fit, Natukis said.

“I think there is a lot of tech innovation out of Omaha,” he said. “It’s a big events town, a big company town and it has great nightlife, and with the demographics of the population, we thought they’d be eager to accept Uber if we came.”

Natukis refutes the PSC’s claims that uberX is unsafe and poorly insured. He says uberX is focused on safety, convenience, reliability and affordability. 

Drivers must have background checks and their vehicles receive a thorough inspection before they hit the road as licensed drivers. They also have insurance that protects riders and drivers. 

Natukis declined to say how many drivers would be on the road in Omaha, but said rider demand would likely drive the market for drivers. Drivers can work whenever and wherever they want in Omaha. They just turn on driver mode in the app.

“There are people driving from all walks of life,” Natukis said. “A lot of fireman drive for uberX because their schedule is 24 hours on, 48 hours off, so they make a little extra money.”

Same goes for school teachers, waitresses and other individuals with flexible hours. 

As for if car-centric Omahans will adopt ridesharing in the long term, Natukis said he sees more options as a good thing, especially for nightlife.

“I oversee a lot of car-centric cities like Indianapolis,” he said, “The first use by far is for nightlife and going out and then they start to use uberX for other things.

“But without an [elevated train like in Chicago] or a subway system, a lot of these cities struggle with drunk driving since there isn’t an easy, accessible, cheap option to prevent it. If you don’t have transportation options, you walk, drive drunk… both bad options, so let’s eliminate as many of these obstacles as possible.”

In other news, Google announced Tuesday Uber would be integrated into its iOS and Android Google Maps app. 

The Uber option will appear when you’re looking up transit or walking directions if you have the Uber app installed on your device in some cities, offering you the estimated time for trips using the car hire service, and launching Uber instantly with a single tap, TechCrunch reported.

Credits: Doug McDermott photo from Uber blog. Screenshot from Uber app. 

This story is part of the AIM Archive

This story is part of the AIM Institute Archive on Silicon Prairie News. AIM gifted SPN to the Nebraska Journalism Trust in January 2023. Learn more about SPN’s origin »

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