Uber picks up support for statewide bill that would override Kansas City’s regulations

Uber on Monday rolled out support from community leaders and pitched Kansas City on a statewide standard to override municipal regulation of the ride-hailing service.

Andy Hung, Uber’s general manager in Kansas City, promised that with the help of the legislation in the Missouri General Assembly, the company would add 4,000 drivers in the area in the coming year. He said that would be among 10,000 it would add statewide.

Allowing Uber to follow one set of rules throughout Missouri would make the expansion easier, Hung said at a news conference. Otherwise, the company and its drivers would have to meet different regulations in different cities.

Kansas City officials oppose the bill because it would stop “any local jurisdiction” from regulating companies as Uber as well as traditional taxis, said Jim Ready, Kansas City’s manager of regulated industries.

But Uber gained support at Monday’s event from the Urban League of Greater Kansas City, the Hispanic Chamber of Commerce of Greater Kansas City and United Inner City Services. Each hailed the economic benefits of the work Uber offers.

“Employment is empowerment,” said Gwendolyn Grant, the president and chief executive of the Urban League chapter. “When more people work, Kansas City thrives, and that’s why we’re partnering with Uber to connect more people to the opportunity to earn money with Uber.”

Grant said Uber’s flexible schedule and driver-determined hours help to improve neighborhoods by giving residents “the power to earn money on their own terms.”

Grant said 1,000 of Uber’s Kansas City-area drivers are African-American.

Kansas City officials and Uber had settled on the current regulations last April as a compromise between the city’s plan to regulate Uber as it had traditional taxis and the company’s position that it shouldn’t be subject to such regulations. Uber said at the time that the compromise would allow the company to “continue to grow, create jobs and provide safe rides in Kansas City for years to come.”

Opponents of the proposed statewide legislation have said it would weaken local efforts to ensure public safety, in part by eliminating the local oversight of drivers’ credentials, including background checks.

If enacted, the legislation also would override the city’s regulation of traditional taxi services, including setting rates, sealing and monitoring meters and other rules.

Uber says it has signed up about 6,000 drivers since it debuted in Kansas City in 2014. More than half, however, drive fewer than six hours a week.

Ready said the statewide regulation would require companies to ensure that their drivers have passed background checks rather than require drivers to prove to the city that those checks were made. Ready said that Kansas City had rejected more than one Uber driver who was free of certain felony convictions.

“It puts the companies in charge of the companies,” Ready said of the proposed change.

Uber has said rider safety is a key to its success and that it uses independent companies to check the backgrounds of would-be drivers.

Company spokesman Dave Bauer said Uber’s smartphone app provides safety in that the rider sees photos of drivers and their cars before they arrive. The app’s “share my ETA” feature allows a passenger to choose up to five people who can track the ride’s progress with their phones to ensure the trip is completed as planned.

It was not clear, however, that Uber’s expansion in Kansas City or statewide would require passage of the state legislation.

“Obviously this helps to have a uniform set of standards across the state, but we’re still committed to adding positions or driver opportunities in Kansas City,” Bauer said.

Uber tied its expansion into St. Joseph, Springfield, Jefferson City and St. Charles to the state legislation.

Bill George, the head of Kansas City Transportation Group, which operates Yellow Cab and other transportation services, said he was willing to abide by reasonable regulations as long as they are the same for Uber and traditional vehicle-for-hire companies such as his.

George questioned Kansas City’s ability to support 4,000 additional Uber drivers. He said Uber drivers regularly apply for jobs at his companies because they can’t earn enough money driving for the ride-hailing service.

Bauer said that the 4,000 additional Uber drivers would not be on the streets at once or all the time. Many would drive irregularly and for relatively few hours to generate additional income, much as its current drivers do.

For comparison, Uber announced plans last June to recruit 10,000 drivers from Chicago’s south and west sides. Bauer cited a report published in October that said Uber was halfway to reaching that goal.

Uber also announced plans in September to recruit 10,000 drivers in Ohio, including 3,000 in Columbus.

This story was originally published March 21, 2016 at 6:56 PM with the headline "Uber picks up support for statewide bill that would override Kansas City’s regulations."