Uber, Lyft drivers need business license in Dewey

Uber, Lyft and other internet-based ride-sharing drivers take note: Dewey Beach expects the purchase of a $109 business license.

Transportation network companies are the same as any taxi service, and they should be treated as such, said Commissioner Dale Cooke during a Feb. 13 commissioners' meeting, when Dewey Beach commissioners voted unanimously to modify the town’s business license to require these companies to purchase business licenses to conduct business within town limits.

Using the state’s definition, Dewey has defined a these companies as those that use a mobile application or website to connect riders with drivers. It continues by saying these drivers use their personal, noncommercial vehicles with the intention of making a profit.

“If it quacks like a duck,” said Mayor Diane Hanson, implying the app-based companies are similar to taxi and limousine services.

The discussion during the meeting was brief, but the vote was the culmination of a months-long discussion amongst the town, ride-sharing drivers and local taxi companies.

Harris Marx is the local Uber driver who spurred that discussion after he said he was harassed by the town’s police officers for dropping off and picking up clients without a business license.

From the very beginning, Marx has said app-based drivers shouldn’t be required to buy a business license.

In a Feb. 15 email, Marx said he was shocked to hear Dewey’s decision to charge the full $109. This fee is unjustified, and a small percentage of the earnings for a taxi or limousine service, he said.

“For a TNC driver it would be a very high percentage,” he said. “For example, I just did my taxes, and if I had to pay the $109 fee, it would have been 50 percent of my net earnings that I did in Dewey Beach last year. I find that ridiculous and offensive.”

Marx said town commissioners have now affected the safety of people who drink in Dewey during the summer. He predicted the issue will continue to be a public-relations nightmare, because fewer cars will be available for rides home.

“In addition, Uber drivers could protest by creating traffic jams in the town during the summer, which is easy in Dewey because of Route 1 being the only way to get in and out,” he wrote.

David Hastings, president and owner of Jolly Trolley, stood fast on his position.

“Fair is fair,” he said. “It’s awesome technology, but that fact should not preclude them conforming to rules for basic safety and community unity.”

Prior to the vote, Commissioner Mike Dunmyer suggested the town work with app-based companies to see if they would pay the town’s licensing fee to cover all drivers using the technology. This is the evolution of how people are using transportation, and it’s going to be a growing issue, he said.

“This was a chance for the town to be a leader on the issue,” he said after the meeting.