Gov. Phil Bryant signed the bill into law in May.
The law exists “to provide for the licensure and regulation of businesses that use a digital network to connect riders to drivers who provide prearranged rides.”
The new law will have the greatest impact on ride-sharing services like Uber and Lyft. Both operate from smartphone apps that allow users to request rides digitally. HB 1381 makes it so these companies are regulated state-wide as opposed to by individual cities, as they previously were in Mississippi, which made it extremely difficult for the companies to operate in certain areas due to local laws.
The act also requires that the companies pay a $5,000 license fee yearly and that drivers be insured for carrying passengers.
Ride-sharing services were previously not allowed to operate in some Mississippi cities, including Oxford, because of local ordinances. HB 1381 overrides any attempts by local government to ban these companies from operating within certain areas.
Walker Sturgeon, an Ole Miss alumnus living in Horn Lake, drives for Uber in the Memphis area.
“I was a teaching aid in Olive Branch. Starting in January, I started Ubering to get some extra cash,” Sturgeon said. “Now that school’s out, I do it full time.”
He said the nights he works generally start in Mississippi and end in Memphis.
“Sure, I’ve put some extra miles on my car, but I’ve long since made up the difference in wages,” he said.
On average, Uber drivers earn $19.04 per hour, while taxi drivers earn $10.97 per hour, according to Uber’s website.
Sturgeon said he thinks Uber will benefit Oxford and the Ole Miss community.
“It’ll significantly cut down on alcohol-related problems, for one,” he said. “It’ll also open up money-making opportunities for students with tight schedules.”
What makes Uber different from taxi companies is that drivers set their own schedules and use their own vehicles. Users can view information about the driver and vehicle, view the driver’s location in real-time, pre-select a drop-off location and get a fare estimate.
At the end of the ride, the user who requested the ride is automatically charged on the credit card attached to his account. There is no tipping or cash payment. Multiple riders can split the fare, but only if they all have Uber accounts.
This is different from the way things work with taxi companies in Oxford, which charge (for rides within the city limits) based on the number of riders and stops, not the distance covered. Uber charges a base fare with added rates for time and distance covered. This system could benefit users in small towns like Oxford, where a person might only need to ride a short distance and, by riding with Uber, could avoid paying the flat rate taxi companies charge.
But some people have concerns about the safety of companies like Uber.
Alfonzo Jordan, owner of Zoe’s Taxi in Oxford, said he believes using a trusted taxi company like his is much safer than riding with Uber in a small town like Oxford.
“Uber is designed for big cities,” Jordan said. “I’ve been to Washington, New York City, Chicago – Uber is fine for big cities like that.”
According to Jordan, the police in Oxford know all the taxi drivers, and all taxis are required to have cameras in them. He also said taxi drivers undergo thorough background checks before they’re able to operate.
Jordan said he doesn’t plan on making changes to how he runs his business now that Uber has arrived. He said he believes people will continue to use local taxi companies, especially when Uber’s surge charges – charges applied when there is a large number of people requesting rides and few drivers available – are in effect, like on major event weekends.
After Austin Blake, owner of Austin Taxi in Oxford, posted on his Facebook page about his concerns regarding the arrival of Uber, he saw an outpouring of support and comments from his customers pledging their continued support of his business. His post received more than 500 likes.
“I pray that with the love I have given, my customers will stay loyal,” Blake said.
