After lengthy discussion on Monday night, the Orlando City Council has granted preliminary approval to allow Uber and Lyft to operate legally in Orlando.
However, there are some stipulations, these ride-sharing services must charge 25% more than taxis in the Orlando area.
Uber and Lyft have thrived on their convenience and competitive price. This proposal put them in a bind.
“I don’t know how we would operate with that kind of regulation,” Lyft’s Jordana Stein said.
Arriving in Orlando last summer, the services work through a smartphone app on which consumers can request a driver willing to give them a ride. Since Uber and Lyft drivers can bypass the added fees that traditional taxis such as Mears Taxi are required to pay, they remain competitive in the market.
Over Halloween, several Uber users, primarily college students, were outraged at the surge pricing. Because the service works in a supply and demand system, the sudden increase in demand that night caused many people’s cab bill to be close to $300, well over the affordable cost. Usually though, Uber’s pricing reflects its aim to be a competitive alternative for transportation, with a fee for an average ride being 30% cheaper than a traditional taxi.
This time it’s Uber who is outraged.
The ride-sharing service, whose drivers use their own, unmarked vehicles to pick up passengers, has been ticketed throughout Orlando since they started operating illegally last summer. Now, they are given an opportunity to become a legit, competitive service but at a high price. Uber’s general manager in Florida, Matt Gore, is worried about the regulations.
“Rate regulation doesn’t help the residents of Orlando,” Gore said. “The only people it helps are the owners of the incumbent taxi industry who don’t want to improve.”
According to the Orlando Sentinel, the ride-sharing services fall under the “livery vehicles” category in the proposal, meaning they would not be required to follow the same regulations as traditional taxis. Uber and Lyft would not be expected to have a local dispatch center or handicap-accessible vehicles. They would, however, be required to start paying the added fees of $500 per vehicle permit, $50 per vehicle inspection, $25 per driver permit and $25 per background check. Their base fare would have to be $3 per mile until the fare hits $20, at which point the driver could determine the rate. Meanwhile, the base fare of a Mears taxi is $2.40 per mile.
The rules of the road are still being debated. A second public hearing will be held next Monday.
