By William C. Singleton III
Over the Mountain cities are starting to jump on the Uber bandwagon.
Homewood, Mountain Brook and Vestavia Hills have passed local laws allowing ride-sharing companies to operate, and Hoover is poised to vote on such an ordinance Jan. 19.
The ride-sharing phenomenon has taken the country by storm, driven by the popularity of being able to book, pay for and track the location of rides, all on a mobile app. The services often are cheaper and have shorter wait times than a traditional taxi service.
Suburban officials say the service is another step into the age of technology and serves a valuable purpose in the area.
“Birmingham will never be the most walkable city in America, nor is our public transportation system really where it needs to be,” said Hoover City Councilman John Lyda, a proponent for Uber-like transportation services. “Historically, we’ve relied on taxi companies as really the only mode of for-hire transportation in the Birmingham metropolitan area. So this will allow a true free-market model to come into the Birmingham area and in Hoover.”
Although the ordinances apply to any transportation network company, Uber – currently the most popular TNC – stands to benefit significantly as it continues to expand its reach into markets nationwide.
Founded in 2009, the San Francisco-based company operates in more than 150 cities in the U.S. and more than 300 worldwide. Customers register on Uber’s website and download an app that lets them contact drivers. Uber also provides a variety of cars, from an “everyday” car to a SUV to a luxury sedan.
Officials in Over the Mountain suburbs said they’ve been looking at bringing Uber to their cities. But they needed to be sure Birmingham would pass its ordinance because the service had to be connected to the larger city to be effective.
“The problem that we had is if Birmingham didn’t pass it, then we could take you from Vestavia Hills to Birmingham, but Uber could not pick you up in Birmingham and bring you back because Birmingham did not have an agreement,” Vestavia Hills Mayor Alberto “Butch” Zaragoza said.
After much discussion, the Birmingham City Council did pass an ordinance allowing TNCs to operate in the city, and Uber officially started its ride-sharing service in the city Dec. 29.
Mountain Brook passed its ordinance Nov. 23, with Homewood following on Dec. 7 and Vestavia Hills on Jan. 4.
Mountain Brook City Manager Sam Gaston said city officials were swayed in their decision by residents who had used Uber in other cities.
“A lot of the younger generation who have lived in some other areas are used to having Uber, so Uber is something they want to see allowed here,” he said. “Of course, it gives residents alternative transportation options.”
Although local laws regulating TNC services are similar in some respects, they differ in other ways.
Requirements for background checks, licensing, inspections, insurance and driver eligibility differ from city to city.
For example, Birmingham requires an annual fee of $8,000 from the company and requires drivers to obtain a $30 business license, which is renewable each year. Homewood requires the TNC to pay an annual $500 licensing fee and requires drivers to carry proof of at least $1 million in liability insurance. In Vestavia Hills, the TNC must pay $500 each year for a business license to operate within the city.
Hoover was scheduled to vote on its ordinance at its Jan. 4 meeting but delayed action to make changes to make the ordinance more public-safety friendly.
For example, the revised proposal requires TNCs to provide ID numbers for drivers who pick up customers in Hoover. The city’s Police Department can chose up to five drivers to make sure they have no red flags on their driving records, conduct criminal background checks, and verify that their vehicles have passed inspection. The proposed ordinance also has other public safety requirements and safeguards.
Following its suburban sister cities, Hoover also would require an annual $500 business fee from the company.
Lyda said that with events such as the SEC Baseball Tournament and SEC Media Day, Hoover needs more transportation options.
“We remain the largest piece in the Birmingham area that has not embraced the service yet, so I’m hopeful that my colleagues join me in supporting this ordinance and bringing this service to Hoover,” he said.
