Marco Santana

msantana@dmreg.com

© 2014 Des Moines Register and Tribune Company

A popular ride-sharing service will debut today in Des Moines despite opposition from officials who say the company is not welcome unless it goes through the city's permitting process.

Uber, a San Francisco, Calif.-based company that operates in more than 200 cities worldwide and more than 100 in the U.S., is expected to start booking rides at noon today.

However, City Councilwoman Christine Hensley says the company would be violating city ordinances that govern taxicabs and shared transportation. Chief among them is a requirement that drivers be licensed as a cab service.

"We have to underscore how significant this is in the fact that they will need to meet taxicab regulations or we will pursue them and take appropriate legal action," Hensley told The Des Moines Register. "We will be looking at it and try to determine what that would mean."

Uber officials say they will continue to communicate with the city to create guidelines that can be beneficial to both parties.

"The approach we take with all the cities is we look forward to working with them, hoping to craft common sense regulations that will recognize that this is coming," said Pooneet Kant, Uber's general manager for regional expansion.

John Stineman of Des Moines said bringing the company to the city would mean convenience, as well as lower prices. He regularly dials up the service when he visits other cities.

He says the backlash aimed at Uber is common when new ideas take shape.

"Uber is disrupting a very settled marketplace," said Stineman, executive director of the Heartland Technology Alliance. "Every so often something comes along that sets everything else on its side. When consumers rush to it, you have to take notice."

Local transportation companies said opposition to Uber has to do with keeping passengers safe rather than limiting competition.

"Public safety is largely the area of major concern," said Mike Beecher, spokesman for Trans Iowa, which operates Yellow Cab and Capitol Cab in Des Moines. "Competition is always going to be there and we have no issues in that regard."

Uber's service recruits drivers to offer rides to others using their personal cars. Using a smartphone application, customers can request a driver to pick them up and get them to their destination.

Uber has been one of the most successful to take on ride-sharing, along with companies like Lyft, also based in San Francisco.

But as it navigates in an arena dominated by taxicab and limousine services, the company has fought numerous unfair practices charges.

German officials this week banned Uber because the company violates Germany's Passenger Transport Act, which governs who can transport others.

Closer to home in Omaha, city officials last week cited Lyft and Uber drivers for misdemeanors for violating state laws related to for-hire transportation.

It appears the company may be headed for the same fate in Des Moines.

In other markets, Uber has announced it would pay for tickets received by its drivers and also announced in Germany that it would continue to operate, according to reports.

"Uber has an almost unbelievable amount of arrogance," said Dave Sutton, spokesman for the Washington-based Taxicab, Limousine & Paratransit Association. "There have been cities that have said you must cease and desist. The company has publicly announced that it would continue to operate in those cities."

Sutton said his organization takes issue with Uber's approach to the industry, essentially skirting laws established long ago that ensure passenger safety.

"They are circumventing the rules and are attempting to self-regulate," Sutton said. "Long ago, in cities across America, there was a great deal of risk involved when you had people transported in vehicles by strangers. Because of this risk, they established laws to make sure the consumer is protected. Uber is circumventing these laws."

The company has created a background check for drivers that examines driving records, county and federal courthouse records, motor vehicle records and the sex offender registry, according to a news release.

Nick Gerhart, Iowa's insurance commissioner, said his office has no issue with Uber. In fact, he says, he has used the service in other cities.

However, last month he released an advisory that warned potential drivers to make sure their insurance covers any possible scenarios related to driving others.

"If someone wants to use this service to make a little bit of extra cash, we want them to understand what their coverage does and does not cover," he said. "The last thing we want is for someone to get in an accident and think they are covered when they are not."

Kant said an increasing number of Des Moines residents had been researching the company's website, hoping to see that Des Moines was next on Uber's list. That led to the decision to launch in central Iowa.

"It's another choice for consumers so we are excited to provide that," he said. "A lot of areas around Des Moines are not served well by the taxis in this area. There are a lot of dead zones where it will be far easier to get an Uber ride. I don't think we are being competitive. It's just a new option in places where they didn't exist before."

To help promote the service, Uber will offer five free rides in Des Moines for any user during the first week.

The company has spent the last several months recruiting and training local drivers, spokeswoman Jennifer Mullin said. Uber did not share the number of drivers it has in the Des Moines area, but Kant said the company could use more.

Uber's impending arrival has been debated at City Hall on a regular basis and Hensley said, ultimately, the service needs to be monitored through licensing.

Stineman says the fact that Uber chose Des Moines, whether the city welcomes it or not, shows the area's progressive nature.

"They are doing very well and being selective about where they go," he said. "For Des Moines to be on that list, it puts us in good company to be on the map with Chicago, Minneapolis and Washington."