Myrtle Beach continues to look at uberX ride-sharing service

After initial backlash to the arrival of uberX to Myrtle Beach in July, city staff issued a stern warning to those who participate in the ride-sharing service.

Police issued four citations to three uberX drivers in late July through “sting operations” and all three drivers requested jury trials. No trial had been set as of mid-December. Officers have not issued any citations since July, police spokesman Lt. Joey Crosby said.

“We’re monitoring their activity and we’re investigating what they’re doing,” Crosby said.

A judge in Charleston found uberX driver Taft Navarro guilty Dec. 5 for violating transportation rules, the first known ruling in the region. He was ordered to pay $437 for operating a ride-for-hire service at Charleston International Airport without the necessary permit.

Uber paid the fine in Charleston and representatives have said it will stand by their drivers, paying for any tickets or court costs.

UberX, the low-cost wing of Uber Technologies Inc., allows those needing a ride to connect with local drivers at a price the company says is cheaper than those offered by taxicabs. As of noon on July 10, uberX said drivers would be available in Myrtle Beach and three other S.C. cities – Charleston, Greenville and Columbia.

Myrtle Beach officials immediately responded saying that were uberX drivers to pick up passengers in city limits, they would be cited for operating without proper licensing. In order to operate in city limits, drivers would need a business license and a certificate of convenience and necessity, also called a medallion.

Taxi drivers told City Council that Uber undercuts their prices and urged council members to ensure the service operates legally.

Katilin Durkosh with Uber Technologies Inc. said the company is “continuing to work with state officials to find a permanent home for Uber across South Carolina.”

The company was scheduled for a hearing with the S.C. Public Service Commission on Sept. 18, but it was continued.

The commission began the process in June to hold a hearing that would determine if Uber is a passenger carrier. Uber spokesman Taylor Bennett has said that the company is not a transportation, but is a technology business.

The hearing has not yet been rescheduled.

Uber has come under fire across the country in recent months, with the state of California suing Uber over it’s driver background checks and other allegations.

Bennett has said that all drivers must go through a “stringent and rigorous background check,” which includes seven years of driving history and a criminal check that looks for a history of sex offense, violence or gun-related crimes, reckless driving and other crimes.

But California attorneys say the company exaggerates the extent of background checks.

“Uber continues to misrepresent and exaggerate background checks on drivers,” Los Angeles District Attorney Jackie Lacey told The Associated Press. “It’s not our goal to shut them down. What we’re saying is their advertising is false.”

Uber drivers across the country also have drawn negative attention to the company. For example, a driver was arrested in San Francisco in September and charged with felony assault on suspicion of using a hammer to attack and seriously injure a passenger who complained about a route.

A Nevada judge temporarily banned Uber’s operations statewide.

Closer to home, North Carolina lawmakers heard presentations on Uber, as well as similar ride-sharing service Lyft and short-term rental sites such as Airbnb. Legislators said that services such as Uber, Lyft and Airbnb represent a new business model that needs to be studied ahead of the next general session, which begins in January.

Charlotte had been set to consider regulations for Uber, but tabled the proposed regulations in September, deciding to wait to see what the N.C. General Assembly does next year.

Uber officials have pointed to regulations passed in September by the District of Columbia’s City Council as a model. Among other measures, D.C.’s law requires a third-party background check going back seven years, annual safety inspections and insurance coverage of $1 million while driving passengers.

UberX drivers continue to operate in the Myrtle Beach area.

The Associated Press contributed to this report.

This story was originally published December 27, 2014 at 12:00 AM with the headline "Myrtle Beach continues to look at uberX ride-sharing service."