Wilmington taxpayers spending $8,000 on Uber billboards

A city-funded billboard campaign featuring a photo of Mayor Dennis P. Williams welcoming the ride-hailing service Uber to Wilmington has irked taxi drivers, who say taxpayer money shouldn’t be used to publicize a business that is undercutting them.

“The people that used to ride with us, they do not ride with us,” said Anthony Eber, owner of New Castle-based Family Taxi Co., which operates in Wilmington.

The city Office of Economic Development is spending $8,000 under a one-month contract for four billboards with the message “Wilmington proudly welcomes UBER” and a picture of Williams. The billboards also include a website address where residents can apply to become a driver for the service.

The billboards are on West Lea Boulevard near North Market Street, Lancaster Avenue near DuPont Street, Augustine Road near West 18th Street, and South Walnut Street near the Amtrak station.

Uber uses a smartphone app to connect drivers and customers who need rides and pay by credit card.

Officials for Uber and the state Division of Motor Vehicles last month reached an agreement to write guidelines for private car providers to operate legally in Delaware. Previously, Delaware regulations were unclear about whether the service was allowed, and drivers operated in a gray area. Uber drivers often were seen around the Amtrak station in downtown Wilmington.

Williams met with Uber officials last year and advocated for the company to enter the Wilmington market, over the objection of cab drivers who said the service is an unfair competition.

“It’s an open market,” Williams told The News Journal in November. “If the cabbies are doing a good job, I don’t think they should worry about competition. That’s the way I feel about it.”

Williams did not respond to an interview request for this story, but his spokeswoman, Alexandra Coppadge, in an email said the billboards deliver a message the city wants to send.

“Uber provides a safe and convenient new transportation option for the city of Wilmington, but more importantly, it provides the livability of our city by making it easier for people to move around and get from place to place,” she said. “As Uber is a new, innovative business, the city is looking to welcome and attract more businesses of that nature.”

Under the state agreement, drivers for ride-share services must undergo a background check, have minimum insurance and can’t pick up fares from outside train stations and other areas.

Delaware requires taxi cab operators to pay about $5,000 in fees and taxes annually and undergo inspections twice a year. The state has 64 registered cab companies.

Hamid Messari, who owns Emerald Cab Co. in Newark, said cabs are more reliable and safer than Uber cars because the service is regulated more stringently. Messari said he and other cab company owners are considering unionizing to fight the expansion.

“At least then, our voice will be listened to,” Messari said.

Uber also operates in neighboring Pennsylvania, New Jersey and parts of Maryland. The company, launched in 2009, operates in 52 countries and has been the subject of ongoing regulatory and legal issues, including a government probe into whether it violates labor laws. A class action lawsuit in San Francisco also seeks to reimburse 160,000 California drivers for mileage and tips.

Statistics about the exact number of registered Uber users in Delaware were not immediately available. Company spokesman Taylor Bennett in an email said it has “hundreds of driver partners in the state.”

Bennett said Uber officials “appreciate Mayor Williams for ensuring Wilmington residents are aware of not only the safe and reliable rides available through Uber, but also of the greater economic opportunity to earn an income.”

Wilmington Economic Development Director Jeff Flynn said it is the first time the city has done a billboard campaign for a new company establishing itself in the city. The money is from the department advertising fund, which mostly is used to publicize events.

Coppadge said they decided to pay for the Uber ads because the company is unique compared to other businesses coming to the city, in that community members can immediately start earning money. The web address on the billboard lets residents get more information about signing up to drive for the company. The city consulted with Uber about the design, she said.

“You’d be surprised how many people don’t know that Uber is here,” Coppadge said. “Not just for the opportunity to use the service but to start earning an income.”

Eber said he already gets calls frequently from people asking for his rate and hanging up without requesting service. He said he thinks they are comparing his price to Uber. Cab prices are more expensive, he said, because of the cost of state regulations placed on the companies, and questions the motivation of Williams to sponsor ads for a competitor.

“He is trying to create a big problem,” Eber said.

The ads will be in place through Aug. 31.

Coppadge said city officials believe that Uber service will not impact the bottom line for cab companies because taxis primarily service the Wilmington Amtrak station and hotels, while Uber cars will service homes and locations where cabs are not normally spotted.

“I think it is important to recognize that this, like any other business, there is competition,” Coppadge said.

Contact Jenna Pizzi at jpizzi@delawareonline.com or (302) 324-2837. Follow her on Twitter @JennaPizzi.