(Washington, D.C. -- WAMU) The battle between Uber the taxi hailing app and the District of Columbia is over.
After clashing for months over proposed regulations that Uber's CEO once claimed would cripple his business, the D.C. Council voted Tuesday to approve legislation creating a sedan class of vehicles-for-hire – separate from taxis – that will allow Uber to charge its customers fares based on distance and time as "digital dispatch" vehicles.
D.C. had been one of the more drawn out and contentious efforts to expand for Uber, and that says a lot. Uber has taken a confrontational approach to growing it's business from it's start in San Francisco a few years ago. Chicago sued the company for violating local regulations on pricing disclosure and safety. San Francisco has fined the company for breaking regulations on driver insurance. This summer Boston issued a cease and desist order to Uber. New York chased the company out of it's iconic yellow cabs saying it violated safety regulations among others. Taxi unions in several cities have also filed suit against the upstart tech company.
The D.C. ruling isn't likely a harbinger of amity between those other cities and Uber. The D.C. council created a separate class of cab that can use Uber. Official metered city taxi cab drivers still can't use the app to snag passengers. New York, for example, already has such a category for non-metered livery cars that are permitted to use Uber all they want.
The ruling is, however, is certain to embolden Uber's confrontational growth strategy.
“Today was a fantastic victory for Uber but also for innovation, for our consumers here, and the drivers that partner with us,” said Rachel Holt, Uber’s general manager in Washington, D.C. She thanked customers for helping convince the council as well as the District’s taxi cab commissioner to back away from more stringent regulations CEO Travis Kalanick once described as “from the draconian to the inane.”
“It's not about anything we did or won. I think what really won was that the fact that we have a passionate consumer base here,” she said. Over the past several months Uber customers flooded council members with complaints about proposals that threatened the company’s business model.
Uber’s black sedans are not hailed on the street. Instead, customers use Uber's smart phone app to order a car to their location using the phone’s GPS and pay with a registered credit card number.
The new legislation requires greater pricing transparency.