For better or for worse, Uber is coming to Jefferson City. And so could other on-demand ride services.
After proving itself during a one-day trial run, the Jefferson City Council earlier this week gave the green light to ride-hailing services such as Uber to operate here.
On Jan. 9, the day of Gov. Eric Greitens' inauguration, the city gave a trial run to Uber. Uber provided an estimated 1,000 free rides that day, and local riders gave the service high marks.
Uber, which started in 2009 and since has grown to operate in more than 500 cities worldwide, claims more than 100 drivers are registered with its service in the Jefferson City and Columbia area, which has already authorized such transportation network companies (TNC).
What's the next step? A TNC such as Uber or Lyft could apply for a license to operate in the city, and be up and running a few days later.
Uber has enjoyed a meteoric rise by building a better mousetrap and by aggressively pushing its service. Customers, particularly millennials, like being able to launch an app on their phones and digitally hail a ride. Some have found it faster and cheaper then traditional cab services.
Because of that, Uber is the fastest company to reach a value of $50 billion, according to Forbes magazine.
But there are things not to like about the company:
Uber, as well as other TNCs, would not directly contribute to our local tax base. To be fair, city attorney Ryan Moehlman said, traditional taxicab services don't contribute much either.
Uber's detractors have accused the company of bullying its way into cities, not paying the same fees/taxes and not following the same regulations as taxi companies.
At times, Uber has flouted regulations in cities, including here. Last fall, News Tribune reporters were able to use the ride service before it was permitted to operate in Jefferson City.
Companies such as Uber provide part-time jobs without benefits. That likely will require drivers to have another job to get by, much less save for retirement.
Uber has been criticized for using "Greyball" software to trick regulators who are trying to catch Uber drivers breaking the law. The company this week pledged to stop the practice.
An Uber employee last month published a frightening account of harassment, mistreatment by the company's human resources department and a culture of sexism.
On the positive side, the city appears to have covered its bases as far as building protections into the law. Among other things, drivers would need to go through a permit process that would require background checks and drug testing. (The background checks are to be handled by the company itself, while taxicab drivers' initial background checks are still handled by the city.) Jefferson City's TNC ordinance is similar to that of Springfield, and is also based on a statewide bill going through the Missouri Legislature.
We encourage competition. Our free enterprise system thrives on it. The city has done its due diligence on studying the issue of on-demand ride services, and has numerous protections.
Hopefully, the benefits of providing next-gen ride services to our residents will outweigh the negatives.