Uber supports proposed state regulations, eyes Iowa expansion

DES MOINES - Ride-sharing companies such as Uber, which operates in the Cedar Rapids and Des Moines metro areas and is eyeing the Quad Cities and Sioux City, would be regulated by legislation being considered by state lawmakers.

Uber and other ride-sharing companies, including Lyft, create online portals through which people can request and offer transportation, similar to a taxi service.

Such ventures are relatively new, and states are beginning to create regulations for the burgeoning ride-sharing industry.

Six states have passed laws - Colorado was the first, in June last year - and roughly 40 others are considering legislation, according to the National Conference of State Legislatures.

Iowa Senate committees this week are considering an updated version of a bill that recently passed the Iowa House, 95-5. The bill would set minimum insurance levels for drivers, require certain disclosures and regulate many other subjects, such as payment methods and vehicle inspections.

Some cities have created rules for the ride-sharing companies. The state law, if passed, would overrule the city ordinances.

Sen. Jeff Danielson, D-Cedar Falls, who is managing the bill in the Senate, called it 'landmark” legislation in a Twitter post and praised the interested parties for working together.

The updated Senate bill includes a recent national agreement between the ride-sharing companies and large automobile insurers.

'We would prefer to have what's in front of you, which is a statewide ordinance that sets ground rules for companies to operate in the state of Iowa,” Mike Triplett of Uber told lawmakers at a committee meeting this week.

The legislation would require ride-sharing drivers to carry $1 million in liability insurance, drive vehicles that pass an inspection and pass a criminal-background check, among other regulations.

Banking officials at the committee hearing expressed concerns with potential insurance coverage gaps for ride-sharing drivers, and airport officials said they would hope to retain the ability to charge a fee to ride-sharing drivers just as they do taxis.

Danielson urged the parties to work with each other and lawmakers to resolve the issue and said he planned to have the bill passed out of the Senate Transportation Committee this week so it survives a legislative deadline.

Uber already operates in Cedar Rapids. Pooneet Kant, an Uber representative, confirmed the company is looking to introduce service in Davenport, and although it has no discussions with officials there, it also has Sioux City on its development map.