Little Rock sends warning letter to ride-sharers

LITTLE ROCK -- Two ride-sharing companies that have yet to make their debut in Little Rock have already drawn protest from city officials.

According to the Arkansas Democrat-Gazette, city attorney Tom Carpenter has sent letters to ride-sharing companies Uber and Lyft, businesses that offer taxi-like services from drivers who use their own vehicles. Drivers, who are connected to customers through a mobile app, earn 80 percent of the fare while the company takes the rest.

The companies recently started advertising for drivers in Little Rock. Both say they're technology companies and not transportation companies, but Carpenter says the ride-sharing service is illegal. He added the groups must adhere to taxicab regulations if they want to operate in Arkansas' capital city. Those rules require companies to have inspections, insurance and dress codes.

At-large City Director Joan Adcock said in a city board of directors meeting that she opposes the services for safety and regulations reasons.

"I've been told this (service) is illegal, that 'Yes, they are coming to Little Rock,' and, 'No, we don't want them here,' but for some reason nothing has been done about it," she said. "Last week, we talked about how we need to warn the public about this. We would have no protection for our citizens over this. There's no accountability."

City Manager Bruce Moore said he's hesitant to put out a public service announcement for something that isn't happening right now.

While both companies have advertised for drivers, Carpenter says there's been no indication that drivers are operating in Little Rock currently.

"Until they actually do something, we have no way to stop them," Carpenter said. "There's little difference in doing this and stopping someone on the street and giving them a ride for just a few dollars."

Both Uber and Lyft perform criminal and driver background checks and have commercial liability insurance coverage.

Uber spokesman Taylor Bennett said the company offers safe and affordable transportation. Uber also has traditional taxicab and luxury vehicle services, but what's being advertised in Little Rock is UberX, the company's ride-sharing service.

"We often find that existing regulations in place are antiquated and were created before innovative technologies like Uber were even fathomed," she said. "It is our hope to work with city officials in Little Rock to modernize those regulations and find a permanent home for ride-sharing in the city."

State Desk on 07/15/2014

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