Uber is official in Delaware
Uber is official in Delaware after company and state officials announced an agreement on guidelines regulating the smartphone-powered private car service.
Over the last few months, representatives from the San Francisco startup have met with lawmakers at Legislative Hall in Dover and the Delaware Division of Motor Vehicles to work on regulations.
The agreement establishes background check requirements, sets minimum insurance requirements, and prohibits drivers from taking fares outside of train stations and airports.
"Uber offers a new, innovative, and in-demand model of providing public carrier services, and the effort to establish this agreement shows Delaware's continued commitment to embracing the innovations of our new economy," said Governor Jack Markell in a written statement.
Uber uses smartphone apps to connect drivers with customers who need rides. Drivers use their own vehicles and the transaction is booked and processed using the app.
Delaware law does not address mobile car services like Uber, and state regulations do not lay out how those car services must operate. But the memorandum clears the path for Uber to formally begin operating in Delaware under clear rules.
Still, Uber has operated in Delaware since late last year.
Delaware's regulated taxicab drivers have criticized state officials for allowing Uber to operate unregulated. The service has been stealing their customers, cab drivers say, while not having to follow the same regulations they do.
But now, under the memorandum, Uber drivers are prohibited from soliciting riders in a designated area, like train stations and airports. Uber will also be subject to frequent comprehensive audits and their minimum insurance coverage will exceed that of normal taxi cabs. Other, similar operations, like Lyft, will be subject to the same standards should they choose to operate in Delaware.
"We look forward to continuing to work together to create a permanent regulatory framework for ridesharing, connecting residents and visitors with safe, affordable and reliable rides and creating jobs along the way," said Jon Feldman, General Manager for Uber, in a written statement.
Uber launched in San Francisco in 2009 and now operates in 56 countries. Both Uber and its primary U.S. competitor, Lyft, have faced sharp opposition from the traditional taxicab industry, and calls for additional regulations to address how the mobile car services must operate as they expand.
Uber operates in neighboring Pennsylvania, including Philadelphia, but the service is unregulated in the city.
The company, whose executives include former Obama campaign manager and Delaware native David Plouffe, has argued that its drivers work freelance and shouldn't be held to the same regulatory standards as taxicab operators.
In Delaware, cab drivers must pay about $5,000 in fees and taxes and submit to inspections every six months. State law also prohibits those convicted of certain drug, child abuse and sex crimes from obtaining a license to drive a cab.
According to the memorandum, Uber drivers cannot operate if they have have ever been found guilty of a Class A or B felony, like a crime against a child, a felony sexual offense or any felony homicide, including vehicular, or if they have been found guilty of a DUI in the last seven years.
The background check also includes bans if a driver has been found guilty of more than 3 moving violations, like driving with a suspended license, or speeding in excess of 20 miles per hour, in the last three years.
"I am happy that the Department was able to come to an agreement with Uber on the terms of its operations here in Delaware. Transportation Network Carriers have the potential to provide the public with new options for transit, and this MOU ensures that those options are provided to Delawareans in a responsible way," said DelDOT Secretary Jennifer Cohan in a written statement.
Contact Jon Offredo at (302) 678-4271, on Twitter @JonOffredo or joffredo@delawareonline.com