Just two weeks before Orlando’s new regulations take effect for Uber and other ride-hailing services, the tech giant continues to fight rules it says will hurt drivers and consumers.
Uber executives have met with city administrators twice in the past week to try to persuade them to change the package of rules adopted by the City Council on Dec. 15. At the same time, the San Francisco-based tech company is going on the attack, using a company blog to slam Orlando for adopting the “most expensive permits in the country.”
Company representatives would not say whether they would take the unusual step of pulling out of the Orlando market if the rules aren’t changed. But a blog item titled “Why Orlando’s Ridesharing Bill Doesn’t Work” seems to raise that possibility.
“On Feb. 1 this ordinance is set to go into effect, threatening our ability to provide access to safe, low-cost rides and economic opportunity for the people of Orlando,” states the item posted on Wednesday.
The Orlando City Council passed the regulations after two marathon public hearings. It creates a new category — separate from those regulating the taxicab industry — specifically for ride-sharing companies such as Uber and its rival Lyft, both of which began operating in Orlando last summer.
The companies offer smartphone apps allowing users to summon drivers in personal vehicles at a cost that’s usually cheaper than a traditional taxi.
City officials said they are working with Uber on some of the company’s suggestions, such as allowing driver applications to be filed online. They’re also trying to come up with a way to delay the payment of vehicle permit fees, because some people sign up to be drivers but never follow through.
But other key elements that Uber opposes — including a minimum fare and costly vehicle permits — are off the table, city officials say.
“That was something our City Council was pretty clear on,” said Heather Fagan, Mayor Buddy Dyer’s deputy chief of staff.
The city initially planned to require Uber and Lyft to charge a minimum fare of $3 per mile, which is 25 percent more than the taxi rate. In the face of public outcry, the city dropped it to $2.40 — the same as taxis — just before the final vote.
Likewise, the City Council reduced the fee drivers will have to pay to register their vehicles from $500 to $250.
Still, Uber executives oppose both.
“Orlando has set up a permitting structure that is as onerous as any we’ve seen out there, and the most costly in the nation,” said Matt Gore, Uber’s general manager for Florida.
Uber has moved into dozens of cities and run afoul of local taxi regulations in many of them. Two dozen cities and states have recently adopted new rules to specifically allow ride-share companies, but Orlando is the only one of those to require a minimum fare, Uber spokesman Taylor Bennett said.
Ride-share companies adjust their rates based on market demand. The mandatory minimum would hobble their ability to do that.
The $250 vehicle registration fee would discourage would-be drivers from applying, particularly those who only plan to do it a few hours a week, Bennett said.
Executives want Orlando to instead allow Uber to pay the city a flat fee — say, $50,000 — to cover an unlimited number of drivers.
Fagan said some City Council members don’t trust Uber because the company operated in violation of Orlando’s regulations for months. Following the new rules would be the best way for Uber to convince commissioners to make the changes the company wants, she said.
In the meantime, there are no plans to delay imposing the new rules on Feb. 1. That’s when ride-share drivers will face fines if they don’t have permits for themselves and their vehicles, and when passengers will start paying more — if the companies follow the rules.
mschlueb@orlandosentinel.com, 407-420-5417 or Twitter @MarkSchlueb
