CBS4 Investigation Finds Illegal Ride Services Rampant In LoDo

DENVER (CBS4)- A CBS4 undercover investigation found a number of car services that have been operating illegally in Denver's Lower Downtown neighborhood. The investigation was sparked by two separate cases where women got into cars they believed were legitimate ride services and were sexually assaulted by the drivers.

According to the Colorado Public Utilities Commission, only licensed taxi cabs can pick up passengers who hail them on the street. All rides from car services, including limousines, Uber and Lyft, must be pre-arranged ahead of time.

On a Saturday night, CBS4 Morning News Anchor Britt Moreno teamed up with CBS4 Investigator Rick Sallinger to see how often drivers were illegally picking people up off the curbs.

Moreno's night started by approaching a black SUV on Market Street, just blocks away from the place where a woman hailed a ride and was raped last October.

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"Are you with Uber? Can we get in your car?" Moreno asked, flanked by a CBS4 producer wearing a hidden camera.

The driver said he would take her to the 16th Street Mall for $16 in cash. He said he could only accept a cash payment since she did not use the online app to book the ride.

A few minutes later back on Market Street, Moreno hopped in a second black SUV.

"You don't mind giving us a ride?" she asked.

"Yes. If you pay me cash," said the driver, "No problem get in."

It is against the law to offer rides called "street hails," so when the trip was finished Sallinger approached the driver who claimed he did nothing wrong.

"So you say you legitimately picked them up?" asked Sallinger.

"They called," said the driver.

"No, they didn't," responded Sallinger.

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In just over an hour, Moreno was able to hail four illegal rides from drivers who claimed to work for the legitimate ride services, Uber or Lyft, but were clearly working outside of the parameters of the law.

"It's reliable transportation," a third driver explained. "You call and we pick you up."

"We didn't call and you picked us up," responded Moreno.

The Colorado Public Utilities Commission enforces the state law that regulates ride services.

"If we can catch them in the act of doing that the penalty is severe," said PUC spokesperson Terry Bote.

To be fair, not all the cars would accept cash for illegal rides.

One driver Moreno approached claimed he was working for Uber and couldn't take her unless she booked the service through an app that tracks the rides.

"Is it illegal to just hop in your car?" Moreno asked as she was denied a ride.

But many others were willing.

"I work for Uber," said another driver. "But I can take you if you want to pay cash."

When Moreno left this car, Sallinger approached the driver.

"Should you be picking up rides on the street like this?"

"No, I just dropped people," said the driver, not knowing Sallinger and Moreno were working together.

The head of Uber in Denver, Will McCollum, says he's heard rumors about rogue drivers.

"Whenever we hear drivers are taking cash for trips deactivation is the next step," McCollum said. "We have a zero tolerance policy in place."

The drivers are cheating Uber and also stealing the fares of legally licensed taxis. Kyle Brown, the general manager of Metro Cab, likens it to hitchhiking.

"I would avoid it," Brown warned. "Wouldn't even touch it because you don't know who is behind the wheel."

To end the night, Sallinger hailed a fifth car that had just dropped passengers using an app.

"Are you a driver? Can you take me to the 16th Street Mall?" he asked.

After his ride, he asked the driver if he knew what he was doing was wrong.

"Should you be picking up people on the street corners like this?"

"No," admitted the driver.

The Public Utilities Commission said it would look at what CBS4 uncovered and step up enforcement if it feels it is necessary.

- Written for CBSDenver.com by CBS4 Investigator Rick Sallinger, CBS4 Morning Anchor Britt Moreno and CBS4 Investigative Producer Mark Ackerman