Uber plans push for upstate NY expansion

ALBANY – The ride-sharing service Uber on Tuesday plans to start on an upstate tour to get state legislation to legalize its company in upstate New York and the New York City suburbs.

And they are traveling with a report that predicts 13,000 full- and part-time jobs in upstate New York in the first year that would produce 500,000 trips per month. The company bases its estimate on its experience in other Uber cities.

“If New York’s leaders allow ride-sharing across the state, a significant economic impact will be felt in every corner of the state,” the Uber report, obtained by Gannett’s Albany Bureau and set for release Tuesday, states.

The one obstacle for Uber and fellow ride-sharing service, Lyft, is the state Legislature. The companies said they need a law to allow for group insurance for its workers and mandate third-party background checks of its drivers.

So far, though, the measure has stalled. Lawmakers return to the Capitol in January.

“What we need is a comprehensive statewide solution,” said Josh Mohrer, general manager for Uber NY.

The San Francisco-based company said that 350,000 New Yorkers outside New York City, where the service is already operating, have downloaded the Uber app, a sign of its popularity. The company operates in 325 cities across the globe, and it has 26,000 drivers in New York City.

Uber operates by allowing customers to request a ride through the app by using GPS to let them pick vehicles in the area and pay a fare. Drivers can work part time or full time to pick up riders.

Lyft, too, is lobbying the state to pass a law to let it operate in upstate New York, but the movement faces opposition from existing livery companies.

Kevin Barwell, president of the Limousine, Bus, Taxi Operators of Upstate New York, said Uber and Lyft should live by the same rules that are required of other taxi and livery companies.

“If they want to come in like any other business, like I did when I started or anyone else started, and they want to operate the same way, we have no problem with that,” Barwell, who owns a limousine company in Buffalo, said. “But to give one entity an unfair advantage because it’s Uber or Lyft or some company that everyone thinks is cool, that we have a problem with.”

Lyft moved into Buffalo and Rochester last year, but shuttered after entering an agreement with the state Attorney General’s Office to operate exclusively in New York City. The move came because regulators said the company did not comply with state insurance and licensing laws.

But support for the companies continues to grow, and there are already some services discreetly available in the lower Hudson Valley.

Uber said it views upstate as three markets: the New York City suburbs, areas with college campuses and mid-to-large cities.

The state Assembly held a roundtable discussion Monday in New York City on the effort to have a statewide law, and another one is planned Wednesday at the Capitol.

On Tuesday, Uber is organizing a rally at the Capitol to launch its upstate marketing campaign, with stops planned in Buffalo, Rochester, Syracuse and Binghamton in the coming weeks.

Advocates said the ride-sharing services would be valuable in upstate New York, which has fewer taxis and a limited public transit system compared to New York City.

“Transportation options available in New York City are much harder to come by elsewhere in the state,” David Mack, director of public affairs for Lyft said in a statement. “We’re excited that elected officials are working towards the return of ride-sharing in upstate New York.”

In New York City, Uber alone provides more than 100,000 rides a day.

Uber is gaining a foothold in Westchester County, even though it isn’t licensed to operate there, the Journal News reported last month.

While Uber users can take a rider to Westchester if they are traveling to or from the city, they can’t operate in the county alone. This year, for example, Westchester has issued roughly 1,000 tickets to Uber drivers for operating without a proper license.

The situation is complicated by the fact that local governments can have their own regulations regarding livery services, which Uber notes as a reason why statewide legislation is needed.

In Ithaca, city officials are considering revisions to its taxi laws to cover ride-sharing services.

Any statewide legislation needs to be crafted so it doesn’t hurt existing businesses, said Assembly Majority Leader Joseph Morelle, D-Irondequoit, Monroe County. Morelle is one of the sponsors of the bill that would aid ride-sharing services.

Morelle said there will likely be new legislation for next year’s session that incorporates concerns from Uber and Lyft, as well as the current livery companies in upstate.

“You need to make sure that you encourage innovation, but not to the point where you are creating two completely different sets of rules for people who are basically doing the same thing and competing in the same space,” Morelle said.

JSPECTOR@Gannett.com

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