I-Team: Cheap Rides at Risk?
CHICAGO (WLS) -- The I-Team is looking into those cheap rides, some as low as $6 from Lincoln Park to the Gold Coast, but managers from the ride sharing app Uber say low prices and convenience are being threatened.
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There is currently legislation pending which will affect riders. That legislation can be vetoed or signed by Governor Pat Quinn any day now. Proponents want statewide regulation, for the safety of the riders, drivers and pedestrians, but the general manager of Chicago's Uber says that the bill could threaten a popular way to get around.
The ride-sharing app Uber uses GPS to get a cab, black car or an Uber X, which is a non-licensed driver in their own car. Some rides can be dirt cheap, like one around downtown for $4.
"If the governor does not veto, this bill it will take a way a service consumers love it will not be available in the same way," said Uber GM Chris Taylor.
Taylor says he hopes a 79,000 rider-signed petition against the bill will convince Governor Quinn to veto the legislation.
"This bill gives the riding public the assurance of knowing they are getting into a vehicle with a driver that has been vetted," said Mara Georges, Illinois Transportation Trade Association.
In addition to current city regulations, the state bill would require Uber X partners who drive more than 36 hours every two weeks to take classes and purchase a chauffeur license for about $20. It would also require all Uber X drivers to get a $350,000 commercial insurance policy. Uber says that's red tape and costs that will mean fewer drivers.
"So this bill puts up a lot of cost restrictions it's going to take dollars out of drivers pockets," Taylor said.
Uber says drivers already undergo nationwide criminal background checks and vehicle inspections and that the electronic itinerary and vehicle information are additional safeguards.
Uber also says its drivers are covered by its insurance.
"If they get pinged for a request, go hop in their car, they have accepted a request at that point, they are covered by a million dollar policy," said Taylor.
When they're not on a trip, Uber says drivers are covered by their own, personal insurance.
Not so, claims the ITTA.
"The gap arises when a driver gets into a vehicle, turns on the app and has not yet accepted a passenger request," Georges said. "But if you go home and look at your personal insurance policy you'll see that it excludes commercial activity."
She also showed the I-Team an annual report, saying Uber's insurance provider, "James River," paid out $33,000 in 2013. She says that's what the cab industry pays out in a day, nationwide.
"If they got this wonderful policy why are there no payouts?" Georges said. "Why in places like San Francisco, where a little girl was hit by an Uber X driver, why are they denying coverage?"
Uber has publicly said that the driver in question during that deadly crash in San Francisco in January, was not providing services for Uber at the time.
It also stands behind its million dollar policy for drivers, as they are providing Uber services. Governor Quinn must either veto or sign that Uber bill by mid-September or it automatically goes into effect.
FOR MORE INFORMATION:
Uber Legislation House Bill 4075
Uber Legislation House Bill 5331
To sign veto petition: www.uber.com/veto
