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Luxury car app scores victory against DC fare regulation
In a victory for smartphone app Uber, the D.C. City Council on Tuesday shelved a proposal that would have set a minimum fare for the luxury car service.
The amendment authored by D.C. councilmember Mary Cheh would have established a price floor that required Uber to set its minimum fare at no less than five times the base price used for taxis.
Cheh made the abrupt decision to put aside the amendment after receiving pushback from Uber and other members of the City Council.
Uber argued that the proposal would have prevented its car service from being an alternative to taxis in D.C. and the council’s intention was to safeguard the city’s taxi industry. The current minimum fare for Uber is $15.
While Uber may have won the fight this time around, Cheh is still mulling whether to bring up the amendment during a later legislative session, according to DCist.
The Consumer Electronics Association lauded the shelving of the amendment, saying the city’s lawmakers should be encouraging new business models like Uber rather than stifling them.
“Uber represents the type of innovation lawmakers should embrace, not stifle; Uber’s business model should be encouraged, not prohibited,” said CEA Chief Executive Gary Shapiro. “Legislating higher prices and fewer choices for Washington-area residents and visitors is atrocious public policy for the D.C. City Council, and would harm the region’s growing reputation as a livable and business-friendly city.”
Uber is a popular smartphone app that allows people to reserve a private car transportation service.
— This story was updated at 6:22 p.m. to correct the city where Uber is located.
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