UPDATE: After watching the replay of the press conference, I got even more concerned. It seems that a city councilor (Erickson) a private citizen (Greg Lafolette) and a Minnehaha County Commissioner (Dean Karsky) were working on this deal secretly behind the scenes without letting in their peers on their respected elected bodies. While I think the council should be in on negotiating these deals, it should be the ENTIRE body. This is why they have committees to deal with these things. I also think the mayor thumbed his nose at traditional cab companies. I agree that competition is a good thing, but when one of those service providers doesn’t have to follow the same rules, that is not fair. Just another day in the closed government of Sioux Falls.
While I’m all for having a ride-sharing service in Sioux Falls like Lyft, I’m a little puzzled by this;
Lyft comes to South Dakota as a result of the work of a private citizen, the Sioux Falls mayor’s office and city council.
The city website goes on to say this;
A team of City and State officials, as well as resident Greg LaFollette, have been working for months to attract Lyft to the city. Lyft is expected to launch operations in Sioux Falls as soon as they can recruit enough drivers. It’s possible that could be as early as spring 2018.
I wonder why this had to be some kind of top secret committee behind the scenes to accomplish this? I know that some of the city council and Minnehaha County Commission had no clue these negotiations were going on. Maybe it was to save them some embarrassment with UBER falling thru;
In 2015, the Sioux Falls City Council passed an ordinance that changed licensing requirements to allow transportation network companies to operate in Sioux Falls. In 2016, the South Dakota State Legislature approved a measure that changed insurance laws to allow companies like Lyft to operate in the state.
Yet UBER has struggled to operate in the state. I wish Lyft lots of luck. But it seems on the government side of all this they have learned nothing about transparency. Would love to see the deal that was cut with the state and city.
Uber changed CEO’s and has had discrimination lawsuits. They’ve lost contracts in the US and overseas. Likely, they’re not adding new smaller markets. Uber has become known for under compensating their drivers. They are behind in technological advancement.
LYFT is a better choice. They’re more solvent and especially focused on the US market. They have backing from a car manufacturer and other principle investors. They are working on a system of electric car rental stations and unmanned driver vehicles.
Erickson has been behind bringing in LYFT. Likely, the council had a secret meeting and appointed her. Perhaps this is a case where Huether agrees with the council without his usual stubborn veto.
Greg LaFollette has or had a position on a City Board. What Board is/was that?
Does he have a personal stake in bringing LYFT to SF?
Many questions about Lyft and Uber.
Number 1. If I give a Lyft driver a $20 toll, how much of that 20 goes to the driver, who as a point of fact, is providing 95% of what it takes to make this a business?
Another example of governments picking winners in the “Free Market System”. Why did this need any government involvement?
Sounds like you need to do a public records request to get to the bottom of yet another secret government agreement.
Are you upset that the entire council wasn’t involved so Theresa couldn’t leak the details to you? Lol.
Greg LaFollette is chair of the Board of Ethics, which leads to other questions…
Lyft drivers assume all the risk, yet get only 20% of the fare. Who gets the other 80%? Lyft fare rates are also set by demand. So if you think you are going to get a competitive rate from a newyears eve party, think again. Is it a franchise type operation? If it is, what role does lafollete play in that? As the chair for the city ethics board, I have way too many questions for lafollete, the mayor, erickson, and karsky.
WP, inside baseball all the way on this one. I’m just wondering when the city is going to drop all the regs for the other indy cab companies in town? Let’s make this a level playing field. This is another reason why this was done on the lowdown, they knew if the traditional cab companies found out they were wheeling and dealing with Lyft they would bitch.
“Sounds like you need to do a public records request to get to the bottom of yet another secret government agreement.”
Yeah, so we can spend another $200K trying to keep it secret from taxpayers?
I need a taxi twice a year. Once, to the airport, and the second when we return. I try to make sure that 100% of what I spend stays here locally. Cannot say that with lyft. Will never use.
Greg Jamison was the guy that originally killed Uber and Lyft from coming to town. It’s too bad because they have a superior product to what the local taxi cabs have. You call a local cab in SF and you can wait 15 min or an hour you never know. If you order a Uber or Lyft you know right where the car is and how close it is to picking you up. Much better product.
Speaking to our citizens about how we are spending their tax dollars is a GOOD thing.
We need more accountability and openness on the Council…not secret deals.
What is there to “deal” or negotiate ?
And, especially from the perspective of Minnehaha County ?
The City changed an ordinance to allow these services to legally operate. The state changed an insurance statute.
[Lkke any other business] If they apply for a sales tax license and proper business licensss, they are in business.
This whole press conference demonstrates a deeply-seeded psychological need for people in this part of the country to receive validation [for living here, I guess]. “We aren’t really anything until we get [insert name of chain restaurant de jour].”
Proof: It was a big deal to Huether, Erickson and Karsky. So big, they needed to call a press conference. For Lyft – not so much. They didn’t even bother to reply to an e-mail inquiry from a local reporter.
This is a nice development. But, I hope the hell Cheesecake Factory doesn’t choose to establish a Sioux Falls location during the dwindling days of the Huether administration. What a presser that will be! Tears and crying, probably.
Yeah Guy, that’s a great question, if all of these things were in place, why were there negotiations? I guess we will never know unless we want to spend another $100K or so in legal fees fighting the city on every secret meeting they have.
My concern as a City Council member is that time after time we are asked to approve a project that has been anointed by a “select/secret committee”. We don’t get to review the other options on the table before we cast the yes or no vote on the chosen “winner”. We are told to trust the decision made by the secret committee. I believe the councilors have a right to review all the proposals before we vote,to ensure we are making the best decision possible for the citizens of Sioux Falls. Let’s not forget who we are working for as elected officials. The citizens, not the City bureaucracy.
So this is getting interesting. I’m hearing over lunch that another mayoral candidate BESIDES Entenman was planning on making an announcement soon about helping UBER get a foot hold in Sioux Falls and the State by working with state government. The Mayor caught wind of it so the Lyft press conference was held earlier than planned (if at all) to take the wind out of their sails and to help Entenman. Erickson I guess now is on team Diamond Jim.
What’s happened in other markets is regular taxis lower their rates and offer better service. If LYFT becomes a threat, regular taxis could convert to contractors only. Then, they have no benefits package and all income stays local. LYFT is but another passing fad. We need something new to gossip with our neighbors about. Eventually, LYFT will be less prominent because their Fortune 500 rates can’t compete with local entrepreneurs.
This is another way for the mayor and council to get free political attention. This is more interference that deserves antitrust attention. But then, a city owned hotel and public paid private indoor tennis went without state and federal intervention.
I just threw up in my mouth a little – “You are the great convener,” LaFollette told Huether. “You can get these people to the table and make it happen.”
http://www.argusleader.com/story/news/city/2017/10/17/how-retiring-accountant-helped-lure-millennial-lyft-sioux-falls/773016001/
That being said, the garbage state of public transit in this town gives Uber/Lyft a built-in market…. until the shine wears off…..
“The mayor at one point offered to fly to Lyft headquarters in San Francisco, which it turned out wouldn’t be necessary.”
Of course. When will this clown realize he’s merely the biggest carp in the stock dam and not a real “player in the market”. Glad this free vacation fell through for him.
https://www.youtube.com/watch?v=c412hqucHKw
Erickson on team Diamond Jim? Hard to imagine that since I’ve heard from several folks that he bullied her to stay out of the mayor’s race. Maybe he offered her a week in February at his Mexican timeshare? You really need to post that picture again.
The excitement over the Lyft announcement wouldn’t be if the local cabbies weren’t gouging customers. $40 for a one-way cab ride from downtown to the southwest side of town is ridiculous. This isn’t midtown Manhattan!
None of this gonna matter after Amazon locates HQ here.
Yep, Amazon is just going to take over the entire Foundation Park area and use Chill to help facilitate their Whole Foods acquisition…. No wonder Amazon agreed to start collecting sales taxes from SD shoppers…. (jk) 😉
I heard they were gonna move into the Badlands Pawn building.
“You are the great convener”
I wonder rather if Mr LaFollette intended to write “You are the great conniver” and that his autocorrect changed this to “convener”.