Major ridesharing service Uber announced Thursday it has reached an agreement with county officials that will allow the company to legally operate within Hillsborough County. The move came the same day Hillsborough County Public Transportation Commission Chair Victor Crist, a longtime critic of Uber, announced he would give up his role as chair.
The PTC now has two choices to consider at its next meeting on Oct. 13: either move forward with their original proposed regulations or compromise with Uber by approving the temporary operating agreement (TOA).
“We have been operating for almost three years in Hillsborough County without a regulatory framework that recognizes the nature of ridesharing options like Uber now operates,” said Stephanie Smith, senior policy manager at Uber. “We believe this agreement represents the most responsible and clearest path forward, and we look forward to continuing the conversations over the next two weeks.”
“These are some of the most advanced public safety regulations in the nation,” Crist said.
The TOA announcement was made at a press conference held at the County Center in Tampa Thursday morning. Crist said Lyft, the other major service operating in the county, has also agreed to the terms of the TOA, but is finalizing the details with its lawyers before making an official announcement.
The TOA is a 15-month agreement that establishes requirements for ridesharing companies, including thorough Level I “plus six” background checks, auto liability insurance requirements, licensure fees, and vehicle age and inspection provisions.
Under the agreement, Uber will pay a $250,000 licensure fee to PTC, whereas Lyft will pay $150,000 because they have fewer cars in Hillsborough County.
Level I background checks will be conducted on all drivers, which will check all criminal records throughout the U.S. where the driver has lived within the last seven years. These background checks include checking federal court, FBI, Interpol, DEA and state and national sex offender records.
“It makes it look and feel like a Level II,” Crist said.
While the rules proposed in the TOA are stronger than the PTC’s original proposed regulations, the TOA doesn’t include Level II background checks that involves fingerprinting, which has been a major point of disagreement between the ridesharing companies and the PTC.
According to Crist, three members of the PTC are resolute about including fingerprint-based background checks in the ridesharing regulations, whereas three other members are open to the enhanced Level I background checks.
County Commissioner Ken Hagan is likely going to be the swing vote at the next meeting, Crist said.
Crist stressed that if the PTC approves the regulations that require fingerprinting, it could ultimately lead to the PTC’s own demise.
“If the PTC continues to anger the Legislature, their head will be on the block,” Crist said.
That's because state lawmakers like Sen. Jeff Brandes, R-St. Petersburg, who see the PTC's attempts to restrict ridesharing services as a barrier to entry into the market — thus an obvious violation of free-market principles — have the ability to abolish the PTC via legislation. While the climate in Tallahassee hasn't allowed for that to happen in past years, the next legislative may prove friendlier given the turnover the November election will cause.
The PTC will be voting on the originally proposed regulations and the TOA during its Oct. 13 meeting.
The proposal will likely be met with opposition from the taxi industry, which has had to compete with ridesharing technology's lower fares and operating costs.
Uber, Lyft and the PTC will reach a compromise if the PTC approves the TOA at its next meeting.
But, if the PTC rejects the TOA, Uber will not be able to operate in Hillsborough County under the other regulations, says an Uber spokesperson.
If that were to happen, litigation and other actions could ensue.
This article appears in Sep 29 – Oct 7, 2016.