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Hi, I’m Brad Feld, a managing director at the Foundry Group who lives in Boulder, Colorado. I invest in software and Internet companies around the US, run marathons and read a lot.

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The Colorado PUC Trying to Shut Down UberDenver

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In yet another insane move by government against entrepreneurs and job creators, the Colorado PUC is proposing a new set of rules that would shut down Uber in Colorado. This is protectionism and misuse of power in an egregious form. Government supporting powerful incubants (the taxi industry) that are threatened by disruptive innovators through regulation. Yuck.

As a Colorado entrepreneurial community, we shouldn’t stand for this. As citizens and tax payers in Colorado, we shouldn’t stand for this. And as innovators, looking forward, we shouldn’t stand for this. My call to action is at the end of this email – if you do nothing else, go sign the petition right now. And tell everyone you know.

I think our governor, John Hickenlooper, is awesome. I hope he focuses on this quickly and demonstrates his own background as an entrepreneur, as an innovator, and as a proponent of innovation. Given the launch of his new effort to rebrand Colorado for the next 20 years, I hope he focuses his brandCO effort on innovation, entrepreneurship, and the future, rather than protecting incumbents in regulated industries through the misuse of power, especially in areas – such as the taxi industry – where the service, at least in Colorado, is uniformly poor. Colorado’s new brand shouldn’t be “backwater protectionist state” – yeah – that doesn’t sound very good to me.

The Uber story has already played out in a number of other states. The regulators quickly back down from the powerful lobby / industry groups that are influencing the new regulations. In some cases, it’s a simple misuse of power. In others, it’s a lack of understanding of what is going on. And in others, it has been a backward looking regulator, or government, that momentarily forgets that it serves its citizens, not a small constituent of incumbents.

The PUC rule changes are extensive, but there are several cleverly woven in that effectively shut down Uber if implemented. Read the following examples and be appalled.

- Section 6301: Uber’s pricing model will be made illegal: Sedan companies will no longer be able to charge by distance (section 6301): This is akin to telling a hotel it is illegal to charge by the night.

- Section 6309: Uber’s partner-drivers will effectively be banned from Downtown — by making it illegal for an Uber car to be within 200 feet of a restaurant, bar, or hotel. This is TAXI protectionism at its finest. The intent is to make sure that only a TAXI can provide a quick pickup in Denver’s city center.

- Section 6001 (ff): Uber’s partner-drivers will be forced out of business — partnering with local sedan companies will be prohibited.

These rules are not designed to promote safety, nor improve quality of service. They are intended to stop innovation, protect incumbents, hurt independent drivers, and shut down Uber in Denver.

There are several things you can do right now.

1) Contact Gov. Hickenlooper and tell him, “Save Uber in Colorado! Withdraw PUC Rules Changes to sections 6001, 6301, & 6309.”

Email Gov. Hickenlooper

Write on Gov. Hickenlooper’s Facebook Wall

2)  Contact the Colorado PUC Directly:

Email Joshua Epel, Chairman

Email Doug Dean, Director

3)  Sign the petition that shows the PUC your #UberDENVERLove.

Disclosure: I am NOT a direct investor in Uber, although I have personal investments in several VC funds that are invested in Uber. However, my ownership is tiny and the amount I’ve spent on Uber services since they launched several years in the bay area dwarfs the amount of money I’d ever expect to see from my indirect investment. I’ve written this because I love the service, love the company, and love their innovation. Society improves when innovators like Uber are able to do their thing – it’s a deeply held belief of mine – that’s why I’ve written this post.

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