Joe Sneve

jsneve@argusleader.com

Uber is coming to Sioux Falls.

Rasier LLC, a subsidiary of the transportation network company Uber, has filed paperwork to begin operating in Sioux Falls, according to the city attorney's office.

The application was filed last week along with the annual license fee of $1,500, which allows Sioux Falls drivers enlisted with Uber to use the company's smart phone application to connect with others looking for rides.

“Even though they’re applying now, they will have to renew before Jan. 31, 2017,” Jamie Palmer, Sioux Falls licensing specialist, said Monday.

Uber spokesperson Carla Jacobs wouldn’t comment when contacted by email Monday morning, other than to say additional details about when it will begin operations in Sioux Falls will be provided in the coming weeks.

“I unfortunately don't have an update for you right now, but I'll let you know when I do. Hopefully in the next week or so,” she said.

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Getting Uber and other application-based ride-hailing services to Sioux Falls has been a storied saga. In the past year, state and local lawmakers have worked to retool driver-for-hire rules and differentiate between traditional taxi cab companies and transportation network companies. The Sioux Falls City Council in November established TNC regulations, requiring background checks for drivers and basic insurance requirements.

In March Gov. Dennis Daugaard signed into law new rules that allow TNC drivers to operate without commercial license plates, something required of others who earn a wage from driving services. It also requires Uber or other TNCs to protect their drivers and customers with their own insurance policies.

For state Rep. Mark Willadsen, the Sioux Falls Republican who introduced the Uber rules in the Legislature last winter, the news of TNCs preparing for operations in South Dakota is welcome. Not only will Uber’s presence drive competition among transportation companies, it also sends a message that the state is embracing an evolving market.

“The people that I’ve talked to that have traveled and used Uber are so happy with it. They don’t see it as an alternative. They see it as the only way to go,” he said. “People that come from out of state to Sioux Falls — and we don’t have Uber — are surprised by it. They’re taking a step back in time.”

The new state law regarding TNCs takes effect July 1, the soonest date Uber could begin operations in South Dakota. But before City Hall can process Uber's application, the TNC must obtain a sales tax license through the South Dakota Department of Revenue and provide proof of it to the city licensing office. As of Monday, that hadn't happened yet.

“I have not done anything with it (the application) yet. I can’t until July 1,” Palmer said.

Follow reporter Joe Sneve on Twitter at @Argus_Joe.