Getting taken for a ride

Much has been made in the last few days of Uber’s arrival in Las Vegas. What many fail to realize, however, is that Uber is in willful violation of Nevada’s laws.

Nevada Revised Statutes 706, enacted by Democrats and Republicans alike, exists to protect the safety of residents and the 40 million tourists who are the lifeblood of Southern Nevada’s economy. Nevada’s laws have created a unique taxi model, which has repeatedly been recognized as the No. l taxi industry in the United States. The reasons for this success include: driver employees; FBI background checks on drivers; drug screening of drivers; extensive driver training; accident avoidance systems in vehicles; cameras in vehicles; and daily inspection of vehicles and constant government oversight of both vehicles and drivers.

Uber offers none of these safety precautions and seeks to use Nevada’s roads and highways while paying no taxes to Nevada. To make matters worse, Uber states that it is not a transportation company, in an effort to avoid liability for accidents. Furthermore, Uber claims that its drivers are independent contractors, in order to avoid all liability for its drivers’ actions.

Rather than obtaining primary insurance that would protect the public, Uber maintains umbrella policies for insurance to avoid paying claims. Uber’s business model is dedicated to driving expenses down by failing to pay licensing fees and taxes in Nevada. Uber’s business model — characterized by inadequate insurance, derelict driver screening and a failure to maintain vehicles — exists at the expense of passenger safety. In Las Vegas, where tourism is our lifeblood, we cannot afford Uber’s irresponsible business model.

When riding in Uber cars, the public is exposing itself to an unacceptable safety risk. For example, in San Francisco, an Uber driver struck and killed a 6-year-old girl with his vehicle. Uber denied any responsibility.

In addition, an Uber ride exposes the public to Uber’s infamous “surge-pricing” model, in which the same ride can cost $20 one day and $100 the next.

Uber was recently given an $18 billion valuation and can afford to comply with Nevada’s laws, implement proper safety plans and adhere to regulated fares. Instead, Uber is above the law and avoids its duty to the public. Uber’s practice of operating without a license is no different than a casino opening on the Strip and thumbing its nose at the Gaming Control Board. Nevada should not have to endure companies that break its laws.

The Las Vegas limousine industry already has “e-hailing,” similar to Uber. The Las Vegas taxi industry is in the process of testing e-hailing technology that will perform just like Uber. The difference is that these systems will be available for licensed and regulated taxi companies, which provide the safest ride to the public.

If Uber wants to operate in Nevada, it should comply with Nevada’s laws, operate as a responsible transportation company and apply for licensure with the Nevada Taxicab Authority or Nevada Transportation Authority, like other licensed Nevada transportation carriers.

As former chairwoman of the Nevada Transportation Authority and now a representative of the commercial transportation industry, I welcome competition. It is good, but not if it’s illegal, and certainly not if it means risking the health and welfare of the public.

Kimberly Maxson-Rushton is executive director and general counsel for the Livery Operators Association and was chairwoman of the Nevada Transportation Authority under Gov. Kenny Guinn.