Business/Economy

Ketchikan will vote on whether to ban Uber, other ride-sharing companies

The Southeast Alaska town of Ketchikan will consider whether to ban Uber and Lyft.

Ketchikan City Council members on Thursday decided to let the public vote on an ordinance that would prohibit transportation network companies — Uber and Lyft are the two largest — from operating within city limits. That ordinance will go on the Oct. 3 ballot.

Transportation network companies, also called ride-hailing companies, use smartphone apps to connect people with rides.

Alaska, trailing behind the Lower 48 where these services have been available for years, recently allowed ride-hailing companies to start operating in the state in June. State law prevents municipalities from regulating such companies, except in the case of voters deciding whether to ban them entirely.

In communities around the country, cab drivers and companies have been some of the loudest opponents of Uber and Lyft, which can be cheaper than a cab ride.

"The council had been hearing from the taxi companies all through the bill going through the Legislature," said Katy Suiter, city clerk in Ketchikan.

At the Aug. 3 meeting, people spoke both in favor and against the potential ban.

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"We need options for transportation in this town," said Joey Tillson, who drives for Uber, at that meeting. "We need options that are affordable for our community. We also need economic growth."

Some were concerned about what Uber and Lyft drivers would mean for traffic congestion and safety around Ketchikan's port, and whether ride-hailing companies would take a chunk out of tour operators' profits.

"I think you guys should believe in local business, not just an Uber driver or somebody coming in and taking local business," Martha Thomas, owner of Alaska Discount Tours, told the council.

Council members also discussed the issue of how to enforce ride-hailing drivers paying their sales tax. Transportation network companies themselves aren't responsible for paying sales tax — that's up to the individual drivers.

Multiple council members at the Aug. 3 meeting said they assume voters will want to keep Uber and similar companies in the community.

Annie Zak

Annie Zak was a business reporter for the ADN between 2015 and 2019.

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