Uber pledges jobs for region, but faces hurdles
The ride-sharing business Uber claims it would create more than 1,000 jobs in the Rochester region and, catering to the college crowd, provide 40,000 rides monthly during the school year, if allowed to operate here.
Local business leaders and state politicians joined Uber executives Wednesday in Rochester, making a pitch for statewide legislation that would clear away regulatory hurdles. Those hurdles, namely local licensing requirements, forced competitor Lyft to shut down Rochester and Buffalo operations last year, and pay the state a $300,000 fine for its unauthorized run. Assembly Majority Leader Joe Morelle, D-Irondequoit, said he hopes to pass legislation in next year's session.
"Places like Rochester are missing out," said Josh Mohrer, general manager for Uber NY.
The gist of the pitch is that Uber is the future, a technology driven transportation service where millennials are the target customer base. It is accessible (you can schedule a ride on your smart phone) and affordable, while providing flexible employment to "entrepreneurs."
Details on fares and, thus, wages, have not yet been determined for the Rochester market. More than half of Uber’s drivers work no more than nine hours per week, according to Uber CEO Travis Kalanick, as reported by Fortune.
Critics raise concerns over passenger safety, while also noting that these are lower-paying, independent contractor jobs without benefits. What that means, according to Joann Weiner, professor of applied economics at George Washington University, writing for The Washington Post, is that if you work enough to gross $62,500 in fares, your take-home after Uber takes its 20 percent cut and you pay for gas, car maintenance, and taxes, would be around $27,600.
Still, New York is among the last states, certainly of any size, to allow the San Francisco-based company to operate. Buffalo is second only to Birmingham, Alabama, in large cities without Uber, according to the company, and the only city with an NFL franchise to not permit ride sharing.
"It's about jobs. It's about transportation," said Robert Duffy, president and CEO of the Rochester Business Alliance. "I think it's a great thing."
Duffy spoke of the opportunity as supplemental income, for someone whose finances are tight but needs money to fix the roof, for example. Uber can provide a transportation alternative for places without bus service. He expects that, "People will use this (Uber) far more than they use taxi cabs." The ride-sharing industry has faced its stiffest opposition from traditional cab companies. But Morelle said he tells those industry officials to use this moment as an opportunity to look at their business, as well as the regulations, and push for change.
"Uber is a technology company," Mohrer said, seeking to differentiate the service from taxis or limousines, which face strict local regulation and licensing.
Said Morelle: "Cab companies in Rochester or wherever else are going to have to adapt." The move to Uber (company officials expected more than 300 driver applicants at a job fair on Wednesday in downtown Rochester) is being driven by consumers, he said. As for the drivers (who must undergo a third-party background check and vehicle inspection), ride-sharing companies like Uber and Lyft are "jobs you can turn on or turn off," he said, for those who need to make extra money but have unpredictable schedules with young children or other commitments.
There also was an effort to spin Uber and ride sharing as a boost to the city's poor, both for the jobs and the affordable transportation.
"Anything that creates jobs, creates opportunity," said Mark Peterson, president and CEO of Greater Rochester Enterprise.
BDSHARP@Gannett.com