Ride-hailing operator sees benefits of state bill to regulate industry

The operator of a local ride-hailing venture sees no problem with a bill in the Missouri Legislature that would regulate his company and others like it.

"It benefits us more than it hurts us," said Gunnar Knudtson, who operates the newly launched carGO ride-hailing program in which customers can summon rides from their smartphones.

Knudtson said he and business partner Kyle Campbell designed their business with a view to being able to meet any future state regulations.

"Missouri is one of the last states to get its hands around ride-sharing," Knudtson said.

Similar legislation stalled last year in the Missouri Senate.

The House last month overwhelmingly approved legislation that would require ride-hailing companies to pay a $5,000 annual license fee to the Missouri Department of Revenue and perform background checks and vehicle inspections.

Companies also would have to meet insurance coverage requirements. It would establish criteria for fare charges and customer receipts.

It would exempt such companies from paying local taxes or needing local permits.

The area's Republican House members voted for the measure, which is before the Senate. They included state Reps. Kathy Swan of Cape Girardeau, Donna Lichtenegger of Jackson, Rick Francis of Perryville and Holly Rehder of Sikeston.

Rehder said in an email the legislation is a priority of House Speaker Todd Richardson, R-Poplar Bluff, "who hopes to create a statewide framework that will allow private enterprise to thrive in a free market."

Thirty-eight states have passed similar legislation, Rehder said.

The legislation is designed to allow transportation network companies such as Uber to expand beyond municipalities that have passed ordinances governing the industry, she said.

Uber operates in Missouri only in Kansas City, St. Louis, Columbia and Springfield, Rehder said.

Knudtson said if the legislation in the Senate becomes law, it could make it easier for ride-hailing companies to expand throughout the state.

Uber, a national leader in ride-hailing, has said it has thousands of drivers across Missouri. If the legislation becomes law, Uber has promised to create as many as 10,000 jobs.

Knudtson said his company has policies in place similar to provisions in the legislation.

He said his company requires its drivers to be fingerprinted and undergo criminal background checks, which are conducted by the Cape Girardeau Police Department.

CarGO has about 70 qualified drivers, with more in the application process.

"We have insurance," Knudtson said, adding the coverage kicks in as soon as a driver clocks in.

Knudtson, the son of former Cape Girardeau mayor Jay Knudtson, said he discussed his venture with Gov. Eric Greitens when he visited Cape Girardeau earlier this year. Knudtson said the governor appears supportive of the industry.

While the legislation would allow ride-hailing companies to operate without municipal permits, Knudtson said his company will continue to work with municipalities.

"We have to have local engagement," he said.

mbliss@semissourian.com

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