Taxis drop downtown security to compete with Uber

Des Moines taxi companies have stopped providing weekend security at a downtown taxi stand in an effort to better compete with Uber, an app-based ride-sharing service launched in the city in September.

Trans Iowa, the organization that oversees most of Des Moines' licensed taxicabs, has abandoned the taxi stand and will instead pick up bar and restaurant customers at the doors of businesses in the Court Avenue entertainment district.

"In order to compete with (Uber) we go to the front door just like they do," said Bill Lillis, legal counsel for Trans Iowa, state's largest transportation provider.

But the change will mean fewer off-duty police officers providing security on downtown streets Friday and Saturday nights.

For eight years Trans Iowa hired off-duty officers to monitor late night crowds near the taxi stand at Court Avenue and Third Street. It created a safe, efficient process to connect riders and cabbies, according to Randy Sackett, president of Trans Iowa.

Some drivers refused to serve Court Avenue before the taxi stand due to safety concerns, he said.

The stand also helped taxi companies provide order in a sometimes chaotic nighttime scene. By requiring fares to line up at the taxi stand, the cab companies could avoid people jumping into taxis ordered by others.

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"We just thought 'you know, we're spending all this extra money and we can pick up at the door, too,' " Sackett said.

His company dropped Court Avenue security about two weeks ago. He said the cost of security was about $500 per weekend.

Lillis, who also represents several Des Moines limousine companies, voiced concerns Monday about a new vehicle-for-hire ordinance presented at a Des Moines City Council work session.

The proposal would loosen local regulations for taxis, limousines and ride-sharing services like Uber.

"There's really no teeth for the drivers," Lillis said. He advised the city to alter the existing rules rather than scrapping them for a new set of regulations.

Pooneet Kant, Uber's manager of operations in Iowa, also attended the Monday meeting.

"We appreciate the continued work from the city," Kant said. But the company is still at odds with parts of the proposed ordinance.

Kant told The Des Moines Register that Uber remains concerned about disclosing the names and contact information for its drivers.

"Once you start to involve the city having that information and controlling that information, who gets to see that, I think it makes people nervous," Kant said.

Some Uber drivers have been reluctant to share their names with reporters, saying they also work full-time jobs with traditional cab companies.

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Kant also takes issue with a rule that would require visible markings on the exterior of any vehicle for hire in the city.

Des Moines City Council members also raised issues with Uber and how it collects fares for rides.

Councilman Bill Gray mentioned the potential for "technological discrimination" against residents who only use cash. Uber only accepts payment through its smartphone app, which requires a credit card to use.

"Some of our neighborhood (residents) they only have cash," Gray said.

City Councilman Skip Moore said he remains concerned about whether Uber is charging and collecting state sales tax for rides.

Despite the reservations, Kant and City Council members both said they are closer to reaching a viable transportation ordinance that ensures safety and ride-share options for residents.

Since launching in Des Moines in September, Uber has won over many former cab customers.

Businesses and events have also partnered with the San Francisco-based company, including the Blue Ribbon Bacon Fest, which created a designated Uber pickup lane Jan. 31 outside the Iowa Events Center.

The Des Moines City Council could consider the new vehicle-for-hire ordinance as soon as Feb. 23.