Stories indexed with the term ‘limo versus taxicab’

Ann Arbor taxicab board meeting (May 22, 2014): Two topics addressed by the board at its April 23, 2014 meeting received additional conversation this month. First, the board discussed the possibility of deregulating taxicab fares, or setting them at a much higher maximum. The board also continued discussing whether to recommend that the city council enact an ordinance to regulate all drivers for hire – taxicab drivers, limo drivers, as well as those who drive for Uber and Lyft.

Both topics will also be considered at the board’s next meeting on June 26.

Consideration of a general driver-for-hire ordinance comes in reaction to the recent entry of Uber and Lyft into the Ann Arbor market. However, taxicab board chair Michael Benson stressed during the meeting that the point of the possible new ordinance was not to “target” Uber and Lyft, but rather to ensure that all drivers for hire are registered with the city. Those two companies, which coordinate drivers and passengers through software applications, have been sent cease-and-desist letters by the Ann Arbor city attorney’s office – for aiding and abetting the violation of a state statute regulating limousines. [.pdf of cease-and-desist sent to Lyft] [.pdf of cease-and-desist sent to Uber]

But the board heard from a University of Michigan student during public commentary time, who reported that the cease-and-desist letters, dated May 14, 2014, were having no impact – as he’d used one of the services three times the previous evening. In the course of his remarks, the UM business undergrad outlined several advantages of Uber and Lyft, including price, convenience and efficiency.

The board had voted at its April 23 meeting to ask the city attorney’s office to draft general driver-for-hire ordinance language for consideration at its May 22 meeting, but that draft was not yet available.

So at its next meeting on June 26, the board is expecting two possible proposals to be ready for consideration: (1) a new rate structure proposal; and (2) a draft ordinance on regulating all drivers for hire. The taxicab board could forward a recommendation to the city council to enact either proposal. A decision on enactment rests with the city council.

Discussion of the driver-for-hire issue at the May 22 meeting included themes familiar from the board’s April 23 conversation, mostly centering on the desire of board members to ensure public safety for patrons of businesses that operate on the public right-of-way. They want to ensure that drivers who are being compensated for their work are registered with the city, that their vehicles are inspected, and that they are adequately insured.

The rate changes to be considered by the board on June 26 come in the context of board interest in seeing the taxicab industry able to compete with limousine services, as well as with services with business models like those of Uber and Lyft. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time.

Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more. Taxicab board member Robert Goeddel supported setting a significantly higher maximum, saying that if the taxicab industry does not survive, he does not want it to be because the basic costs of doing business can’t be covered.

City CFO Tom Crawford, who sits on the taxicab board as an ex officio member, noted that it’s a challenge to consider changes in rate structures at the same time as new entrants have come into the market – who have a lower cost structure than the taxicab industry. He expressed some concern that the result could be a “race to the bottom” for pricing that could work to destroy the taxicab industry.

In other business, the board elected its officers for the next year – an annual task. Benson and Stephen Kunselman were re-elected as chair and vice chair of the board.   [Full Story]

Ann Arbor city taxicab board meeting (Jan. 24, 2013): The taxicab board’s agenda included two main items: (1) an appeal from a driver who’d been denied a taxicab license when he applied last year; and (2) scheduling of future meetings.

The driver’s application had been denied by the city based on the fact that he currently has 7 points on his license – stemming from a right-on-red violation and a speeding violation. The city’s ordinance stipulates that a license to operate a taxicab doesn’t have to be granted if an applicant has more than 6 points on their license. The board quizzed the prospective driver about past traffic infractions and his intentions for future employment, before deciding to grant his appeal.

The outcome of the board’s discussion on meeting time led to a decision to fix its regular meeting time for the fourth Thursday of the month at 5:30 p.m. That’s a decision that applies to the next six months. Before deciding to commit to that schedule, the board weighed the fact that its newest member – Eric Sturgis, whose appointment had been confirmed by the city council just two days earlier – had applied for appointment with the understanding that the regular meeting time was 8 a.m. Sturgis wasn’t able to attend the Jan. 24 meeting.

During public commentary, the board heard from representatives of taxicab companies who complained about limousines that operate as taxicabs – which appears to be an ongoing problem. Under the city’s ordinance, it’s not possible for a vehicle to be licensed as a limousine under the state’s rules and simultaneously operate as a taxicab. The board heard the specific complaint that limousine companies violate the “top light” rule, which prohibits “for hire” lights on the top of vehicles – unless they are licensed as taxicabs.

At the meeting, the board’s city council representative, Stephen Kunselman (Ward 3), responded to the complaints by indicating that the board is very aware of the issue. He added that the city’s lobbyist is working on that issue with the state legislature.

The responsibility of the city’s taxicab board is “to enforce the taxicab ordinance, hear appeals of those who are aggrieved by any decision made by the administrator and adopt regulations to facilitate the administration of the taxicab ordinance.” [Full Story]