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Annapolis Taxis Unaffected by Maryland’s Agreement with Uber

Uber agreed to allow the state to regulate its limousine and sport utility vehicle divisions but not the one opponents say competes with taxicabs.

(Tribune News Service) -- Annapolis cab drivers didn't get any relief from the state settlement announced Thursday with the ride-sharing company Uber.

Uber Technologies Inc. agreed to allow the state to regulate its limousine and sport utility vehicle divisions but not the one opponents say competes with taxicabs. City taxi operators say Uber is not abiding by the rules they must follow or paying the costs they have to meet.

The state's move comes a month after Annapolis Mayor Mike Pantelides said the city would warn, then fine UberX drivers who had not registered their vehicles with the municipality as taxicabs. The mayor said the city would start fining UberX drivers on Feb. 15.

Pantelides said he's happy the Maryland Public Service Commission ruled on two of Uber's services. That helps set a precedent for new technology-based firms, he said.

The mayor said he hopes the state will rule on UberX, because any law the city passes would be superseded by state law.

Until the state rules on UberX, Pantelides said, the city must do what is fair for all taxi services and enforce the rules.

"I stand by what we did," he said. "It was a proactive action and the right thing to do."

Alderman Joe Budge, D-Ward 1, chairman of the city's transportation committee, said he has not heard if any fines have been issued under the city regulation.

The state's agreement with Uber covers only nontaxicab for-hire carriers. Uber's subsidiary, Drinnen LLC, agreed to be treated as a common carrier and will file a motor-carrier permit with the PSC.

Drinnen will also provide the names of all drivers who accept trip requests through Uber's app in Maryland.

In addition, the subsidiary will file a schedule of its times, rates and charges, which may include maximum and minimum rates and surge pricing. This information will be made available to the public on the Internet.

All Drinnen drivers are required to have Maryland passenger-for-hire driver's licenses and will use vehicles that have Maryland operating permits. The drivers will not be exclusive to Drinnen and may contract with other licensed motor carriers.

Uber contends it is not a taxicab firm. Instead, it says it provides smartphone technology allowing independent drivers to schedule rides with passengers. Uber receives 20 percent of the fares of UberX drivers.

Uber spokesman Taylor Bennett said the state should follow the lead of Washington, D.C., and Virginia, which have enacted "sensible" laws to "embrace Uber's innovative business model.

"While today's action only addresses one part of our business —UberBLACK— it doesn't change the fact that Maryland still needs to modernize its transportation laws to ensure the PSC isn't forced to regulate Uber with 20th-century transportation rules," Bennett said in an emailed statement.

Robert Eades, owner of the Neet-N-Klean Taxi Co. in Annapolis, doubts Uber will ever agree to be regulated like a taxicab firm.

"I don't ever see them falling into line," Eades said. "I hope they don't. We have enough cabs in the city of Annapolis."

On Jan. 26, Pantelides said fines for individual violations of the taxicab regulations will range from $25 to $100. City Manager Tom Andrews said accumulation of multiple fines could cost drivers up to $2,000. Drivers, not Uber, will be fined, Pantelides said.

Pantelides said last month Uber officials ignored the cease-and-desist demand in a July 2014 letter from the city.

"We need to take a more aggressive approach," he said in January.

©2015 The Capital (Annapolis, Md.) Distributed by Tribune Content Agency, LLC