As Uber attempts to clear a path for business in South Carolina, state agencies and city law enforcement continue to throw up roadblocks, saying the mobile app and ride-sharing company is operating illegally.
Beginning on July 10, Uber launched its lower-cost UberX service in Greenville, Columbia, Charleston and Myrtle Beach, but friction between the company and the state has mounted ever since.
A law enforcement officer for the South Carolina Office of Regulatory Staff (ORS) attended a meeting in Columbia designed to recruit drivers for UberX and attempted to attend another in Charleston but was asked to leave, said Dukes Scott, executive director, ORS.
The officer wanted to attend both meetings to obtain information on Uber’s recruitment practices, he said.
The Nerve, a project of the South Carolina Policy Council, reported that a ruckus ensued once Uber officials learned of ORS’ presence at the meeting.
The article included a statement from Dawn Hipp, director of ORS’ Office of Transportation, Water/Wastewater and Consumer Services.
ORS officials spoke at the meeting but were asked not to come back and shown the door, she said. “As it stands, Uber is breaking South Carolina law.”
Uber officials maintain their willingness to work with state and local agencies.
The company has been working with officials across the state, said Taylor Bennett, Uber spokesman.
“We look forward to continue working with officials to demonstrate the value that safe and reliable transportation options offer residents and visitors, and to develop sensible regulations that embrace consumer choice and economic opportunity,” he said.
The Charleston Post and Courier reported last week that the city’s police department decided to discourage local drivers from offering the car service after meeting with local taxi companies.
According to the article, Charleston police also plan to engage in sting operations to begin issuing warnings to UberX drivers who are violating local and state codes by driving their personal vehicles for fares. Eventually, undercover police will begin handing out citations with a maximum fine of $1,049 instead of warnings.
Bennett said that any effort by law enforcement to discourage drivers from partnering with Uber is the equivalent of discouraging people from pursuing entrepreneurship, making a living and contributing to the economy.
“Instead of listening to taxi companies complain about competition, authorities should listen to the people of Charleston who have embraced more choice and greater access to opportunity,” he said.
The City of Charleston issued a statement on July 22, saying that the state and city regulations require drivers to obtain a chauffer’s license, confirm their commercial liability insurance, outfit their vehicles with the appropriate license plate conveying the vehicle is for hire, get their vehicle inspected, and submit to a regulated fee structure on the City of Charleston peninsula, that includes a $5 charge for any licensed vehicle ride.
Uber told the Upstate Business Journal in an interview last month that the ride-sharing service is not a transportation company and the regulations for those business models do not apply.
“We’re a technology company that connects riders to drivers,” said Taylor Bennett.
Current transportation regulations are antiquated and were created long before Uber, but “we want to help modernize those policies and look forward to continuing conversations with city and state officials to find a permanent home for Uber in South Carolina,” he said.
The Office of Regulatory Staff filed a petition with the state’s Public Service Commission saying that it is illegal for the company to operate in South Carolina.
The petition states that Uber has been actively engaged in the recruitment of “partner” drivers and the advertisement of its transportation services in the State of South Carolina and intends to begin offering transportation passenger carrier services through its app to the general public.
A hearing is scheduled for Aug. 26 in Columbia so the Public Service Commission can determine if Uber or its drivers should be subject to the regulatory authority of the commission.
A spokesperson for the Greenville Police Department said they are not aware of any issues involving Uber in the city and are waiting on results of the hearing in late August.
Interim City Attorney Robert Coler agrees, saying Uber may become a good thing for the citizens of Greenville, but the city’s position will remain objective until the state determines their business model.
“As the city’s attorney, I will not authorize any police resources to investigate Uber’s operations,” he said.
