uber v city .jpg

Web app vehicle company Uber is battling with the city of Birmingham over its public transportation rules. (Vehicle, screenshot from Uber's web page (left) City of Birmingham seal (right)

BIRMINGHAM, Alabama -- A Birmingham City Council vote Tuesday to revise transportation rules could either make or break the entry of Uber into the Birmingham market.

While city leaders call the code revision a way to update and expand what is defined and regulated, Uber officials describe Birmingham's current and proposed revised policies as over-burdensome and opportunity-shattering.

Uber plans to bring its UberX service model to Birmingham.

"We look forward to the possibility of connecting riders and drivers in Birmingham, however, if Tuesday's ordinance passes as written, we will likely focus on bringing our reliable transportation alternatives to more innovation friendly markets," Uber spokesman Billy Guernier told AL.com, responding to several questions about the company's opposition to city rules.

The city on Friday also received a detailed response from Dave Barmore, Uber public policy specialist.

Most of Uber's objections revolve around provisions already in place, including those requiring all transportation companies to obtain a business license, a public need certificate, undergo vehicle inspections and agree to driver background checks.

"What the proposed ordinance does is attempt to regulate a 21st century transportation alternative in a 20th century fashion," Guernier said.

Just as prohibitive to business, Guernier said, are rules that would require UberX drivers to carry full-time commercial insurance, even though those drivers would only use their personal vehicle for part-time commercial use.

Uber provides primary commercial insurance up to $1 million for each trip made by its drivers. All drivers must also have their own personal insurance.

"When not utilizing the Uber platform, UberX drivers rely on their own insurance coverage. When a partner isn't using his/her car to provide rides, they're using it to go about their daily lives, and personal insurance is what is required of them," Guernier said.

While proposed revisions to the code would add wording to cover ride sharing services, Uber officials want a separate classification for ride sharing services, with different requirements than the traditional services.

New classifications have already been adopted in other cities, the company argues.

For example, Uber also opposes current rules requiring certificates of public necessity and convenience for vehicles and the city's schedule of pricing for taxicabs and other public vehicles as prohibitive to new models of business such as theirs.

Uber objects to Birmingham's mandatory minimum rates for transportation companies, calling artificially high rates prohibitive to fair competition.

And while the city code requires inspections for the public transportation providers, Uber maintains it has its own system to ensure quality by collecting feedback from riders and drivers after each trip.

"Real-time feedback about drivers means Uber can correct issues big and small - while ensuring that only the best drivers stay on the road," Guernier explained. "If we receive vehicle quality reports, we will deactivate the partner until they are able to demonstrate that the issues have been rectified."

Responding to the company's detailed position presented by the company, Councilwoman Kim Rafferty, chairwoman of the council's transportation committee, said some of the city's positions remain firm because they are part of required public protections.

"...at this time, it would be quite egregious and pre-emptive to consider editing our transportation code or prepared edits designed to deal with the present transportation industries operating in Birmingham for an outside interest," Rafferty wrote to Barmore.

Rafferty said it is unfortunate that Uber had not provided its detailed feedback earlier in the process, before the debate between the city and company became contentious in social media.

"I cannot commit to any fast track or immediate response (as that could be construed as a backroom deal and unethical) but I can promise fair consideration and negotiation with Uber moving forward when additional information is collected, due process is initiated, and discussion is had," Rafferty wrote.