Cabbie v. GOLIATH

Business is “call, call, call” and “go, go, go,” says Grace, a 44-year-old single mother of three, who ferries customers for Uber in Fernandina Beach, where the popular ride-share service is making inroads with non-professional drivers seeking to earn money on their own schedule and residents and travelers needing a ride. This is a city without public transportation and with about 20 licensed cab drivers who may or may not be nearby, or in service, when it’s time to go out or return to the house or hotel. So, when the Uber mobile app reports to your cell phone that a driver is minutes from your location and available for reservation, there’s just one thing to do: tap ‘reserve.’

Grace, who asked that her last name be withheld, for privacy, became a driver for the ride-sharing service six weeks ago, and on Saturday night she handled three calls in her first hour behind the wheel. “It’s been really great,” said Grace, while talking with a passenger on the way to Publix Supermarket.

Like all Uber drivers, Grace uses her own vehicle, a red 2015 Nissan Altima, and says she answered the company’s “Drivers Wanted” ad for the money. “I could use some extra cash, so I thought, ‘Why not?’” she said. Grace says she likes Uber’s flexible hours and “exceptionally nice” customers. She drives several evenings each week, including Friday and Saturday, and estimated her weekly take-home pay is $150.

But the presence of Uber and drivers like Grace has local cab companies and drivers crying foul. According to local code, ride-sharing services, such as Uber and Lyft, are not permitted to operate within the city of Fernandina Beach, though on any given day it is possible to summon a ride with an Uber driver within city limits. Local taxicab drivers and operators consider this an affront to their businesses, complaining that they must follow local regulations on licensing, insurance, background checks, and vehicle inspections and also are required to have company names and numbers posted on three sides of the vehicle in four-inch reflective lettering, while Uber is operating without these restrictions.

“They’re just merrily riding around, taking our business,” said Nico Findeisen, 73, who operates Heritage Transportation in Fernandina Beach. He estimates that his fares are down 40 percent since Uber arrived in the city about nine months ago.

With its easy-to-use cell phone app and network of everyman drivers, Uber has seamlessly inserted its ride-sharing service into the transportation network of cities around the country, as well as some overseas. While the company is entrenched in Jacksonville, Uber is only now gaining traction in Fernandina Beach despite prohibitions.

Jeff Kurtz, who promotes business in the city’s downtown retail and restaurant district as the executive director of the city’s Florida Main Street Program, said that ride-sharing is a valuable transit option, especially for people who shouldn’t get behind the wheel after a night out. “There is definitely a demand for transit,” said Kurtz. “People need rides home.”

While the city has not officially embraced the share economy, it has not rejected it, either. The city commission is scheduled to meet Nov. 15 to discuss the issue and local drivers say they will be in attendance.

Justin Carroll of Amelia Transportation Group says he fears the city commission will support a “Silicon Valley behemoth at the potential demise of locally owned and operated business.”

Uber spokesperson Javi Correoso rejects the idea that the city will show any favoritism to the company because, in his opinion, local rules do not apply to ride-sharing services. “The regulations are for cabs and limos,” said Correoso, who works in Uber’s Miami office. Still, he said, the company launched talks with local officials last spring in an effort to secure legal approval. “We hope the conversations we’ve been having lead to a regulatory framework for ride-sharing,” said Correoso.

On May 18, Uber lobbyists met with city leaders, including Mayor Johnny Miller and City Attorney Tammi Bach, and later presented a model ordinance for consideration, according to Bach, who provided Folio Weekly with a copy of the six-page document. Miller did not respond to several requests for comment, both in person and by email.

In the model ordinance, Uber calls itself a transit network company and not a “common carrier,” like taxis and limos, and recommends a $1,000 city permit fee. The company said in the document that it will conduct a national criminal background check on drivers and provide a $1 million liability insurance policy, though there are restrictions on when coverage applies, including being logged into the digital network and meeting conditions for a “pre-arranged ride.”

“Please take a look and let me know if you have any questions or concerns,” said Stephanie Smith, who works in Uber’s public policy office, in a June 6 email to Bach.

Talks stalled over the summer, said Bach, because of a heavy workload. Bach said a major development review for a heavy manufacturing plant took priority. Also, a series of bad storms, including Tropical Storm Colin, Hurricane Hermine and Hurricane Matthew, interrupted business activity, she said.

While the conversation is picking up again, drivers say they have not been included in talks. “That’s another reason why we’re so mad,” said Findeisen, who is licensed to work in Nassau, Duval and St. Johns counties and approved by Homeland Security to pick up fares at Jacksonville International Airport.

There is expectation that state lawmakers will take action on the matter. Ride-share regulations are expected to be addressed in the 2017 legislative session, said Bach. Last year, the Florida House of Representatives approved a measure but it didn’t make it through the Senate.

Bach said the share economy is a complicated issue and she is studying agreements Uber has worked out with other communities, including Duval and Broward counties and the cities of Miami and Orlando. In a phone interview Oct. 21, Bach said the city must work its way through new rules and regulations for ride-sharing services and while changes are being considered, Bach said, “right now we’re not permitting them.”

Still, no one is asking Uber drivers to get off the road and, further, authorities have — for now — stopped issuing citations to Uber drivers. Bach and Fernandina Beach Police Chief James Hurley said they have installed the mobile app and can see activity on their cell phones. “I’ve even seen those black cars riding around here,” said Bach, referring to Uber’s luxury sedan and SUV service.

There may be an effort to keep things cordial. Officials did not say. But Uber is well-funded and has been in court in other cities.

There is a lot at stake. As licensed commercial drivers focus on holding onto their businesses, Uber is also pursuing new business opportunities and taking aim at delivery services. Correoso, the media representative, said that in Tampa, several restaurants have signed on for the company’s takeout food delivery service UberEATS, and in Pinellas County, Uber and Lyft have partnered with the county’s public transportation agency to provide subsidized or free rides for seniors. Undoubtedly, Uber is finding new ground to cover and sees an open road.