Uber

State lawmakers are looking at ways to regulate Uber, a popular ridesharing service.

(Courtesy | Uber)

LANSING, MI -- Transportation network companies like Uber and Lyft allow users to summon a car from their smartphones, but some Michigan lawmakers want to make sure the drivers and cars are safe before Michiganders hop in.

"I'm very concerned that Uber is out of control and would like some controls to be put into place. We're not trying to control the app, but I certainly think we could control the drivers," said Sen. Rick Jones.

Senate Bill 0184, introduced by Jones, R-Grand Ledge, would hold cars in a transportation network company to the same safety inspection and insurance standards as limousines. It would also and allow local municipalities to regulate transportation network companies.

Senate Bill 0188, introduced by Sen. Dale Zorn, R-Ida, would define what insurance a transportation network company's vehicles had to carry and also require drivers to carry a chauffeur's license. It also requires the company to do background checks on drivers.

Mike White, general manager of Uber in Michigan, said Uber already does checks to ensure its vehicles are safe, including a robust series of background checks on drivers. Requiring drivers to get a chauffeur's license would mean added cost and time.

"All of these things are barriers for a part-time driver like an Uber X driver to be able to quickly and easily get onto the platform, and they're not actually addressing a safety question," White said.

Uber has sent out e-mails to its users asking them to call their senators and oppose the Senate legislation.

But some of what Jones is hearing from constituents doesn't sit well with the lawmaker. He's been told of Uber drivers picking up "drunken co-eds" and then having them request a ride through the app. He heard once of a small child accompanying a driver, which he didn't think was appropriate.

Currently, Uber is regulated piecemeal by local municipalities. In communities like Lansing and East Lansing local governments welcomed the company with open arms. It's been more contentious in cities like Ann Arbor.

White said that for Uber, the concern is that lawmakers will try to sandwich them into an outdated model.

"We want there to be legislation that establishes a standard. The problem with this legislation is it's trying to force transportation network companies into the old model of limousine companies, and you undermine all the progress that we've been able to make when you do that," White said.

In the House, Rep. Tim Kelly, R-Saginaw, has introduced House Bill 4032, which would regulate transportation network companies at the state and not the local level. It too would require a chauffeur's license and carry a specific amount of insurance.

Legislation that would have regulated transportation network companies failed to pass the House of Representatives last session.

"I'm sure Uber is going to thrive and do very well in Michigan, I just think if we're going to give cab and limo drivers rules that we should certainly have rules for Uber drivers," Jones said.

Emily Lawler is a Capitol/Lansing business reporter for MLive. You can reach her at elawler@mlive.com, subscribe to her on Facebook or follow her on Twitter: @emilyjanelawler.