« swipe left for tags/categories
swipe right to go back »
UberDenver and Uber CEO Travis Kalanick are hosting a rally at Galvanize after the Colorado Public Utilities Commission holds a public hearing on proposed rules changes that could shut UberDenver down.
I’ve had a number of private conversations since I wrote my post The Colorado PUC Trying to Shut Down UberDenver. I continue to think the whole situation is insane especially given our state government’s strong position on advancing innovation in Colorado. The PUC’s behavior is clearly protectionist, anti-innovation, and undermines many of the efforts of entrepreneurs in Colorado to advance and amplify innovation here.
Apparently, the FTC agrees. I just read the FTC comments on the proposed rule changes and they do a very direct job of addressing 6001(ff), 6301(a), and 6309(d) which are the things I called out in my original blog post on 1/30/13. The punch line from the FTC memo is “FTC staff is concerned that these three proposed changes may significantly impair competition in passenger vehicle transportation services, including innovative methods of competition enabled by new software applications (“applications”) that allow consumers to arrange and pay for services in new ways that they might prefer, and thus harm consumers.”
Given that the PUC’s stated mission (on their website) is to “serve the public interest by effectively regulating utilities and facilities so that the people of Colorado receive safe, reliable, and reasonably-priced services consistent with the economic, environmental and social values of our state” I’m hopeful the PUC comes to its senses and serves the public interest in this case, rather than try to create new rules that protect entrenched and incubent companies.
I’ve been told in the private conversations that I’ve had that this will be resolved soon in a way that makes sense. Until then, I continue to encourage anyone in Colorado who is pro-innovation to support Uber’s efforts here and, if you are around Monday, head down to Galvanize between 6pm and 9pm for an UberRally.
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.”
2) Contact the Colorado PUC Directly:
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.