Adrian D. Garcia

Fort Collins residents will soon be able to hail a private driver with a few taps on their smartphone.

Silicon Valley startup Uber is contracting drivers and plans to be available within the city before the end of the year, according to Will McCollum, Uber’s general manager in Colorado.

All residents will have to do is install the app, enter their credit card (or PayPal) information and push a button to request a ride. Then the nearest Uber driver will take them where they need to go. The company also allows drivers to use their own vehicles to pick up customers through its lower-cost service called “uberX.”

Uber knows there’s already a demand for the company to expand to Northern Colorado based on how many people have opened the app in the region, McCollum said.

“Wherever our followers want rides, that’s where we want to be,” he said. “We want to be the leaders in the country on how to do ride-sharing right.”

Starting things “right” in Fort Collins will take some time. The company is gathering drivers and preparing to tactfully enter the market.

“We’re not the kind of company that says we’re gonna provide service and then when you open the app, nothing is there,” McCollum said.

It’s great that the company is adding Fort Collins to the more than 100 metro areas it already serves throughout the world, State Rep. Joann Ginal said.

“Uber offers regular citizens an opportunity for more of a choice,” Ginal said. “These ride-sharing apps will give people a new and cost-effective way to get around town.”

The Fort Collins Democrat helped pave the way for Uber, Lyft and other modern taxilike services to operate in Colorado when she reviewed Senate Bill 125 with the the House Transportation & Energy Committee in April. The bill created the nation’s first operating regulations for transportation network companies, or TNCs — organizations that prearrange rides for people via digitally-enabled apps and platforms.

“I thought it was a great, novel idea,” she said. “These are new and pretty entrepreneurial companies. I’m glad they’re coming to Fort Collins.”

Ginal and a large majority of other lawmakers passed the bill. Gov. John Hickenlooper signed it into law last Thursday. TNCs like Uber are now legally required to provide insurance coverage, perform vehicle safety inspections and conduct driver background checks.

Regulations for TNCs are still not as strict as they are for traditional taxi service companies, said both Genesis Car Service owner Lynnea Graves and Yellow Cab general manager Todd Michels. Both services provide rides in Fort Collins.

Businesses like Graves’s and Yellow Cab are licensed through the state’s Public Utilities Commission. The PUC has a different set of background checks and insurance coverage requirements for taxi companies. Hickenlooper has asked regulators to review this issue.

Graves expects to lose business when Uber enters Northern Colorado, she said. Her company has served Loveland and Fort Collins for two and a half years.

“I don’t think there’s a need for them,” she said. “I think Fort Collins is too small per capita for them to come.”

Yellow Cab also serves Larimer and Weld counties. The cab service is concerned with how Uber operates.

Uber’s price levels are based on demand and its vehicles aren’t handicap accessible, Michels said. “Yellow Cab is confident in the service we provide. We will not discriminate passengers who don’t have smartphones or credit cards.”

As a whole, Uber is a large company to compete with.

Last Friday, Uber announced that it raised $1.2 billion in primary capital from international investors. It was founded in 2010 and is valued at $17 billion. Another $200 million will likely be raised before the current fundraising round is finished, according to a news release from the company.

As of December 2013, the company has 450,000 active users worldwide and about 85,000 new sign-ups, based on information leaked to a Gawker media blog and later confirmed by Uber.

Readers react

The Coloradoan asked its Twitter and Facebook followers on June 5 if they would use the ride-sharing service Uber. Here are some of the responses we received. Feel free to add yours in the comment section.

“I’ve used them in San Francisco. Felt like a very safe experience in a very unfamiliar place to me. Also they were there super fast and very professional. I’d use them if I needed a ride in Fort Collins.” — Blair Greenwood, via Facebook

“Absolutely! I would love to have another option than Yellow Cab.” — Stefanie Mecklenburg, via Facebook

“I’ve used Uber in several cities and have never had a bad experience.” — Charlie Radman via Facebook

“Yes ... much faster to respond and cheaper than a taxi. Also a good chance it will reduce DUI’s in Ft Collins” — @Ribsic via Twitter

“Definitely! When does it start?” — Greg Spalding, via Twitter