West Hollywood will consider cutting license fees by 40% for taxi companies, which have reported a 40% decline in trips with the advent of services such as Uber and Lyft.
On Monday, the council voted in favor of a proposal by Councilmember Lindsey Horvath to delay the annual taxi licensing process, which is set to begin next week, for 60 days. That will give city staffers time to develop a proposal for the licensing fee reduction, which the council must approve
The city collects various fees from taxi cab companies and drivers. According to a report on Horvath’s proposal prepared for the city council, the annual taxi fee per taxicab in West Hollywood is $1,215, which is a combination of the franchise fee, vehicle inspection fee and annual coupon enhancement fee. Those fees totaled $695,460 in the 2014-2015 fiscal year. A 40% reduction would mean a loss in revenue of $278,199. Taxicab drivers pay an annual permit fee of $55. Driver permit fee revenues were $35,875 in the 2014-2015 fiscal year. A 40% reduction in the driver permit fee would reduce revenue to the city by $14,350.
In May 2012, the city council approved a five-year extension of the taxicab franchise agreement. The agreement authorizes seven taxi companies to operate in West Hollywood and specifies a certain number of cabs for each. The total number of cabs authorized is 569. The final year of the agreement begins next month.
West Hollywood already has underway a study to determine the number of taxis needed to serve the city.
The study will determine the impact of transportation providers other than taxi companies and take that impact into account when developing recommendations. The study is expected to be done in the next 60 to 90 days.
The city’s regulations could be voided if the state legislature passes AB 650, a bill introduced by Assembly member Evan Low (D-Campbell). It would give the state Public Utilities Commission the authority to regulate taxicab services throughout California, shifting the regulatory authority from local governments to the state. AB 650 would let taxi companies set their own prices, streamline the licensing and background check process and insurance requirements and eliminate restrictions on the number of cabs allowed to operate in an area. It is one of several bills intended to loosen restrictions on taxicab companies to make them more competitive with transportation network companies such as Lyft and Uber.
Instead of addressing the motivations moving the Council to act with their hearts and the city’s money to take on a business enterprise for profit, that is now getting its hit (pretty late compared to almost all industries as we entered the digital age – reshaping all businesses along the way.) 1. I’ve seen no caring, action and certainly no money from city funds over the last 20 years, as various (large and small) changes in our economy that actually cost residents of weho to suffer on a personal human level from an unforeseeable change. There has been a shortage… Read more »
Its pretty clear that Uber and Lyft do a superior job over the taxi companies creating a good experience for the passenger. The taxi companies are creating a market by their tone in many cases. But, its fair for the city of west hollywood to work with these taxi franchises to compromise some fees but its not fair to have taxi stands around town that are exclusively licensed so that only these companies can pick up and are not for uber and lyft. The city might consider asking uber or lyft drivers to register with the city and pay a… Read more »
I took a cab the other night for the first time in years and nothing had seemed to change. Once started, the driver told me ‘no credit cards.’ I moaned about it but said I had cash. The fare was $12.50 (normally it’s $5-6 on Uber or Lyft for the same trip). I handed him a $20 and asked for a 5 back. That’s when he told me ‘oh, I don’t have any change for that. I only have 20s and 100s. then had the nerve to tell me “c’mon a $7 tip is nothing!’ I told him this is… Read more »
Couldn’t have said it any better Jimmy.
i cannot tell you how many taxi drivers have told me they are going broke because of uber and lyft. at least give them a fair shot. lower or remove the fees or find a way to regulate the others . i dont begrudge any of the company’s from making money, but the cab drivers should not be penalized. they have played by the rules for years.
this is a good idea, allowing the city and cab companies to further study the impact and viability of services like uber and lyft.
the more the merrier, as far as providing transportation options for residents.
When AB 650 (Low) originally passed the Assembly it was related to horse-racing. In the State Senate, the bill was amended to remove the subject of horse-racing and added the subject of taxicab regulation. If the bill passes the State Senate, it will need to be voted on again by the State Assembly. Here is a link to the current language of the bill as of May 27, 2016. (http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB650) If you have comments related to the bill’s current subject matter (taxicab regulation), please share your comments with the Office of Assemblymember Richard Bloom by visiting his website: http://www.assembly.ca.gov/bloom and… Read more »