Charlotte Cab Companies Want State To Stop Uber

January 21, 2015

Audrina Bigos,

[gtxvideo vid=”5paNWVyA” playlist=”” pid=”Bbt3TRDe” thumb=”http://player.gtxcel.com/thumbs/5paNWVyA.jpg” vtitle=”uber suit”]

CHARLOTTE, NC – Charlotte cab companies want the ride-sharing service Uber shut down until the state starts to regulate the business.

Cab owners say the smartphone-based company is competing unfairly.

“We’re not scared of Uber. We’re not scared of competition,” said Obaid Khan, co-owner of Diamond Cab.

But Khan, who helps run his family-owned business, says he wants to play fair.

Diamond Cab has been operating in Charlotte for 15 years, spending thousands to stay in business.

“Here we are paying the City of Charlotte for medallions, driver permits and company renewals every year, and here’s a company that has an app–anybody can get an app,” said Khan.

Uber, which allows you to call for a ride on your smartphone, has already been ordered to shut down in South Carolina until licensing and regulations are in place.

Now, Charlotte cab companies want the same thing done in the city.

Right now, more than 24 states already have rules and regulations in place for ride-sharing companies like Uber.

Those rules include requiring drivers to undergo a background check and vehicle inspection and show proof of insurance. Driving records are also checked.

Khan would also like to see the state regulate how low Uber can drop its rates. Local cab companies have a fixed rate of $2.50 per mile.

“We’re sitting here with a set price for the City of Charlotte, so we can’t compete with them. If we want to drop it down to a dollar, we can’t do that right now,” said Khan.

North Carolina lawmakers on the Revenue Laws Study committee put together a report on the issue. It lists major concerns with the Uber business model including compliance with existing state law, background checks for drivers, fares, commercial license plates, and insurance.

WCCB took those concerns to Uber, which operates in 10 cities in North Carolina.

“There needs to be rules in place that protect consumers, and there should be regulations that ensure consumer safety, and we welcome regulations,” said Taylor Bennett, an Uber spokesperson.

Lawmakers will meet to discuss this later this month.

A spokesperson with the City of Charlotte say a proposed ordinance to regulate Uber is on hold until state lawmakers introduce and vote on legislation this year.