Ride-sharing comes to Iowa

IOWA CITY - As the city council navigates a proposed taxi ordinance, officials could have to face the controversial ride-sharing industry as it moves closer to home.

A smartphone app called Uber moved to Iowa for the first time on Friday, launching its rideshare program in Des Moines. Uber functions as an alternative to taxis where people use their personal cars to drive others around for a negotiated price.

'It's my understanding that in the places where Uber has been successful it's almost revolutionized the taxi business,” said Iowa City Police Chief Sam Hargadine.

But in some cities, including Des Moines, the company sparked controversy about the legality of its business model.

The Iowa Insurance Division issued a warning to customers about participating in Uber and Lyft - another ride-sharing company. The warning advised customers to talk to their insurance companies to 'avoid devastating financial losses due to non-covered claims.”

In cities with Uber, people can use the app as an alternative to taxi rides. Uber matches users with nearby drivers using GPS. Riders can fill in where they want to go and find out the price of the ride, including gratuity, before the car even arrives. Uber then automatically deducts the money from the passengers account at the end of the ride.

The current taxi system in Iowa City somewhat resembles the Uber design of individual drivers with personal cars operating under one company name.

However, Police Chief Sam Hargadine said Uber brings a level of rate stability and driver accountability that's absent from much of the Iowa City taxi system.

Hargadine said the stability of knowing the rate upfront, and accountability of user-rated drivers, 'could be quite a paradigm shift for cabs.” He has proposed five regulations to the city council in response to a series of alleged sexual assaults last fall and winter. Hargadine says his proposal would hold cab companies more accountable for drivers and vehicles operating under each company's name.

Sue Dulek, assistant city attorney for Iowa City, said Uber would likely not fall within the city's current taxi regulations such as requirements for a central dispatch, company insurance for each vehicle and city-facilitated cab inspections.

'From my understanding of those basic concepts, (Uber) would not fit on the books,” she said.

As of Friday evening, Uber could not be reached for comment.

The Police Department met with Iowa City cabdrivers and companies on Tuesday to discuss the proposed taxi regulations. Dulek said the city council does not have a date set to vote on the regulations.