Uber to launch in Meridian Friday; Service expected be popular among young people, tourists

Published 2:45 pm Wednesday, August 16, 2017

An Uber car service app on an Apple iPhone in New York in 2014. The ride-sharing company has 's driver-passenger matching technology, flexible labor supply and exemption from licensing regulations that hurt efficiency are giving it a leg up when it comes to securing customers and keeping the meters ticking, according to a new National Bureau of Economic Research paper.

The popular ride-sharing company Uber is bringing its service to Meridian Friday, and Mayor Percy Bland says the service could be a big hit with younger people.  

The company released the statement on their website on August 9, adding that with new service areas in the Golden Triangle and the Mississippi Delta it would grow to cover the entire state.

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“They don’t have some of the regulations that our local cabs have and they have a different business model,” Bland said about the news.

Bland said he believed there would be a demand for the service, especially for the younger people in the area.

“A lot of people that use the app are part of the younger demographic,” Bland said. “It could also offer younger people an opportunity for part time employment by being a driver.”

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Bland said Uber had to conduct a market study to justify expanding service to Meridian, Tupelo and more which indicated there had to be a demand.

However, Bland said he didn’t think the service would compete against the bus service offered by Community Regional Transportation or the local demand for cabs.

“The person that chooses Meridian transit buses and the people that utilize taxis are two different markets,” Bland said. “And those who would use the Uber app are a different clientele than the other two.”

Angeleque Adams, the executive director of the Meridian Cab Company, thinks differently.

“I think it will ultimately impact us as it has across the country,” Adams said. “There’s been (cab driver) protests in New York and lawsuits as close as Jackson.”

But Adams agrees with Bland that the service will likely draw the younger crowd, adding that tourists could also use the app.

“I’m from Houston myself so I’ve used Uber,” Adams said. “It’s great for travelers and tourists.”

However, Adams said the taxi customers may not be as tech savvy and trusting of Uber.

“There’s the question, ‘Who’s picking me up?” Adams added, “We’ve been around for 40 years and some of our riders have a personal relationship with their driver.”

Adams said that because Uber doesn’t have the same regulations as cab companies, they can operate without incurring the expenses and bypass the lengthy process for getting cab drivers approved.

“It’s harder to recruit drivers… because it’s a 60-90 day process from start to finish (for approval),” Adams said, listing the various requirements of cab drivers. “Some of my drivers are retiring.”

Even now, with 2,000 to 2,500 rides per month and nine drivers, Adams said the company has difficulty meeting demand. As drivers retire, and as the city grows, that demand will only increase.

“I’m with the East Mississippi Business Development Corporation, I’m the president of the Minority Business Alliance with (the EMBDC). I know that business is coming to Meridian,” Adams said. “Something needed to happen and no other cab company is coming to Meridian and stepping up.”

Dede Mogollon, the director of Lauderdale County Tourism, said Uber could be a great option for tourists staying in hotels and wanted to explore the city.

“There’s definitely a demand with as many people as are in our hotels,” Mogollon said. “Especially for those that want to explore our city but don’t know how to get somewhere. It’s a bonus for our city.”

Mogollon said people visiting Meridian often ask about local transportation options, especially from the airport to their hotel or to sites within the city.

“One thing we hope for is that it will allow our travelers the opportunity to explore our community more,” Mogollon said. “Instead of just staying at their hotel near the interstate, maybe they’ll explore the north side of town or whatever.”

To request a ride, users download the Uber app onto their smartphone, provide their name and add a credit card to the account. Then, users put their destination into the app and a nearby Uber driver accepts the ride. However, the service warns that wait times may be longer than usual in new service areas as riders and drivers learn more about Uber.

On its website, Uber says drivers can make their own money and schedules, with a chance of earning tips through the service.

The website’s calculator couldn’t estimate fare yet, but the coverage area for Meridian includes Philadelphia, Newton, Scooba, Carthage and Quitman, ending just outside of Laurel. It doesn’t cross the state line or extend to Jackson.