[S]tarting Monday, the ride service Uber will temporarily be able to legally operate within Burlington’s city limits.
Nine months after Uber’s operations were deemed illegal, Uber and the city of Burlington have signed an interim license and operating agreement, allowing the company to operate.
Tim Ruarks, owner of the Dunwright Taxi Co., said the deal won’t change anything.
Uber was told in an Oct. 21, 2014, letter from Eileen Blackwood, the Burlington city attorney, that it couldn’t legally operate in the city, due to the city’s current Vehicles for Hire ordinance. Ruarks said that this didn’t stop the company from operating anyways.
“[Uber] has been affecting our business illegally for the past year, almost,” Ruarks said.
An Uber spokesperson said that 50 jurisdictions around the country have agreed that innovative transportation options don’t fit into existing regulatory frameworks and require new rules.
Unlike taxis, Uber matches people who need rides with available drivers through a smartphone application.
Since October, there have been discussions between Burlington city officials and Uber toward an agreement on how it could legally operate in the city. The deal was signed after the city council authorized it at its June 29 meeting.
“Nothing’s going to change for them,” Ruarks said. “They’re going to continue to do the same stuff they’ve been doing, they’ll just have a legal status now, well, at least temporary legal status.”
Laura Shen, operations manager of Uber New England, said that the agreement is a “smart temporary solution that addresses industry concerns, yet recognizes ridesharing’s innovative business model.”
Chris Herrick, owner of Green Cab Vermont, said that Uber has already affected his business.
“They have taken business away from us,” Herrick said. “It’s a noticeable, significant drop in revenue ever since they started showing up in October — mostly on weekend nights — but we have seen a decrease in revenue.”
Herrick said he agrees with Ruarks that Uber has been operating illegally for the past 10 months, but disagrees that the agreement won’t change anything.
“I do think it’s going to change something in terms of how they market,” Herrick said. “My speculation will be that they’re just going to push their marketing harder now.”
Uber drivers will also not be able to accept or solicit street hails, as part of the agreement. Most of their hails are electronic, through a mobile app called UberX. Drivers must also display the Uber logo or decal on their vehicles, or else they may be fined under the agreement.
A “good percentage” of the Burlington taxi business is picking up and dropping off passengers at Burlington International Airport, Herricks said. Under the agreement, Uber drivers will also be able to pick up and drop off passengers at the airport, but Ruarks said even this isn’t a change.
“They’ve been picking up and dropping off at the airport since last October,” he said.
Herrick said that the new “geofence” that Uber is allowed to set up around the airport premises under the new agreement is a huge part of its new marketing push and is more than just “regulatory infrastructure.” A geofence allows the company to solicit to anybody on the airport premises who has the Uber app, usually through a text message or push notification, he said.
“So it is targeted toward those who have the app but (with) the geo fence that they are being allowed to set up at the airport they’re going to basically be allowed to solicit rides from their app-holders immediately upon arrival, which I can’t do,” Herricks said. “I can’t hold up a sign in the airport saying, ‘Your Green Cab is waiting’ to people who are my customers.”
The agreement is temporary because the Vehicles for Hire ordinance will have to be revised in order to make it permanent. The City Council Ordinance Committee will now work on adopting permanent revisions to the ordinance, so that Uber is able to continue operating longterm in the city.
Committee meetings are scheduled for July 20 and Aug. 13, and the city council has issued a November deadline for the committee to report back by, according to a July 10 news release.
“It’s great we could reach a short-term compromise as city council works toward a long-term framework, and we look forward to continuing to facilitate safe, reliable rides and job opportunities in Burlington,” Uber’s Shen said.
