Uber needs right balance of regulation

For many Texans, regulation not a kind word.

The idea of increasing regulatory requirements on a company that has harnessed the power of the free market to revolutionize the ride-for-hire industry sounds like the oppressive hand of big government.

But in the case of Uber, the app-based car service now operating in Fort Worth and Dallas, more regulation seems reasonable, and perhaps necessary.

Unlike traditional cab services, which can require waiting on hold for a dispatcher or furious and sometimes futile arm-waving, Uber users barely have to lift a finger to order a private car — literally. They can summon a ride with only the swipe of a smartphone app.

Because the service is wholly app-based, money never exchanges hands between the driver and fare — it’s paid for by credit card through a smartphone. Prices are competitive, and users are able to provide driver feedback, an evaluation tool the company says it takes very seriously.

But Uber has also garnered criticism, particularly from traditional cab companies, which point to Uber’s less-stringent insurance and security requirements.

Unlike cab companies, which are regulated by cities and localities that enforce vehicle inspections, insurance requirements, criminal background checks and drug testing, Uber has been able to avoid many business burdens. It also circumvents operating fees that cost cab operators thousands each year.

That cab companies are complaining about a new, tech-savvy model that is cutting into their business is no surprise. That’s the nature of competition.

But the critics have a fair argument when it comes to safety concerns. Uber drivers, who usually drive vehicles they own, aren’t subject to the same inspection process as cab drivers. Uber’s website says it requires “robust” insurance coverage, but it appears less stringent than that required by cab and limousine services.

And while the company performs its own background checks on drivers, it’s not unreasonable for a city or locality to also require that drivers-for-hire be subject to additional controls.

The Fort Worth City Council will be briefed in January on options for regulating Uber and other app-based businesses.

The council should adopt policies that encourage competition but put public safety first.

This story was originally published December 23, 2014 at 5:27 PM with the headline "Uber needs right balance of regulation."