Taxi Industry Inquiry – State of Victoria
Taxicab Regulation
In North America
Taxicab Regulation in
North America
Prepared for:
Taxi Industry Inquiry
State of Victoria
By:
Hara Associates Inc.
Bayswater Square, 1066 Somerset Street West, Suite 406, Ottawa, Ontario, K1Y 4T3
613-722-5528, 613-482-4901(Fax), hara@haraassociates.com
Hara Associates Reference: 1518
April 28, 2012
Acknowledgements. This paper was prepared for the State of Victoria Taxi Inquiry by Dr. Dan Hara
and Dr. Charles Mallory, with the assistance of representatives of participating jurisdictions.
Responsibility for errors and omissions is the authors’. Research assistance was provided by Chad
Bracken.
TABLE OF CONTENTS
1
Introduction to the Sample Cities ___________________________________________ 1
2
Terminology ____________________________________________________________ 4
3
Jurisdiction _____________________________________________________________ 4
4
Taxi Licensing and Entry Management _______________________________________ 5
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
LICENSE ISSUE .................................................................................................................................................... 5
CLASSIC REGIME ................................................................................................................................................. 6
OWNER-DRIVER REGIMES ................................................................................................................................ 11
REGULATION OF DRIVER LEASE RATES ............................................................................................................ 13
UNDERSERVED NEIGHBOURHOODS – LICENSE REQUIREMENTS ..................................................................... 14
NEW YORK – A HYBRID REGIME ....................................................................................................................... 14
LOS ANGELES – THE FRANCHISE SYSTEM ......................................................................................................... 15
OPEN ENTRY REGIMES ..................................................................................................................................... 15
OPEN-ENTRY – TAXIS PER CAPITA – AND POTENTIAL FOR UNREALIZED SOCIAL SURPLUS ............................. 18
5
Vehicle Requirements & New Technology ___________________________________ 20
5.1
5.2
DRIVER SAFETY & TREND TO CAMERAS ........................................................................................................... 20
NEW TECHNOLOGY WAVE – PASSENGER BACK SEAT EXPERIENCE & DATA COLLECTION ............................... 22
6
Data Collection & Performance Monitoring __________________________________ 23
6.1
6.2
LOS ANGELES – COMPREHENSIVE REPORTING FOR TWENTY YEARS ............................................................... 23
OTHER CITIES IN CANADA & USA ..................................................................................................................... 24
7
Driver Training & Testing _________________________________________________ 25
8
Accessible Taxis_________________________________________________________ 25
9
Integration with Other Modes _____________________________________________ 26
10
Adjustment of Meter Rates & Fares ________________________________________ 26
11
Potential Lessons from the North American Experience ________________________ 28
12
Individual City Profiles ___________________________________________________ 29
APPENDIX A: List of Interview Respondents
Taxicab Regulation in North America
The State of Victoria has established a Taxi Industry Inquiry to investigate all aspects of the taxi and hire
car industry. The Inquiry will recommend a set of reforms to the government focused on achieving
better outcomes for the travelling public. This research paper has been commissioned by the Inquiry to
document current practice of taxicab and vehicle for hire regulation in Canada and the United States.
North America represents a large pool of experience and a variety of experiments in taxicab regulation
and reform. The United States and Canada also share a common underlying legal tradition with
Australia. This paper seeks to identify useful ideas, options, and lessons learned from the North
American experience.
The work is based on 12 selected North American cities, supplemented by broader context drawn from a
variety of sources. Analysis is also supported by Hara Associates’ 20 years of practice in advising taxi and
vehicle-for-hire regulators in the United States and Canada.
The paper begins by introducing the sample cities, and clarifying terminology. Cross-sectional analysis
follows on a variety of topics, ending with observations and lessons learned. Topics include:







Licensing regime for taxicabs and brokers (companies), and methods of managing entry to the
industry.
Vehicle standards, including safety, new technology and wheelchair accessible taxicab service.
Licensing regime for drivers, and training and language requirements.
Licensing regime for meter rates.
Innovation in monitoring performance standards relative to passenger concerns such as
dispatch times and shortest route.
Approaches to integrating taxicab service with other modes of transportation.
Advantages and disadvantages as perceived by the regulators of these jurisdictions.
The paper concludes with profiles of each of the regimes, providing detail on current practice and their
history of regulatory reform.
1 Introduction to the Sample Cities
Twelve regimes were selected on their representativeness of current practice, the innovative alternative
they offer, or their experience with regulatory reform. These are:

Boston. Boston went through a reform period where the quota of taxicab licenses was
expanded significantly, without apparent long run impact on the market value of taxicab
licenses (termed medallions). This suggests Boston as a possible example of how potential taxi
demand is underestimated when current low supply leaves some market segments unserved.
Along with New York, Boston is also one of the leading cities in requiring technology-based
passenger information systems in taxicabs, requiring this information to be shared with the
regulator (although analysis is not currently used to track individual company performance).

Chicago. Chicago is a classic North American regime that maintains a limit on the total number
of taxis serving the street-hail and dispatch markets. Its main reform initiatives have been to
expand permitted taxi numbers in combination with promoting owner-drivers, and quotas to
serve outlying and low-income areas. Pursuant to an extensive review, a new ordinance will take
effect July 1st of this year, but detailed regulations are not yet public.
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2 Taxicab Regulation in North America

Indianapolis. Indianapolis is a large U.S. city that moved from a cap on the number of taxis to
an open-entry regime in the 1990’s. In contrast to experiments with full deregulation in the
1970’s by other cities, Indianapolis continued regulating in other areas, including caps on meter
rates. Thus it is an example of the “open-entry” option that is often suggested as an alternative
to deregulation.

Las Vegas. Las Vegas is a well-known North American example of what can be done when a
jurisdiction makes taxicab service a civic priority. Las Vegas is a city built on tourism, and wants
its visitors to spend as much time as possible at entertainment centres rather than in taxis.
Regulated at the state level by the Nevada Taxicab Authority, Las Vegas gets high marks from
visitors on the quality of its taxi service. Many of the licenses are limited by time and
neighborhood to address peak-load and neighbourhood service. Las Vegas is also an example of
a public convenience and necessity regime. New entrants must demonstrate the need for their
services in hearings, where other affected parties may intervene, including current operators.

Los Angeles. Los Angeles is the longest running example of a franchise system. Taxi companies
are awarded service areas for 10-year periods based on bids and maintaining performance
standards. Taxi numbers are adjusted using performance reports on dispatch times and
telephone answer times.

Minneapolis. Minneapolis is another city that has moved recently from a license-limited to an
open-entry regime. Limits on taxi numbers were completely removed as of January 2011. As
with Indianapolis, this is an example of open-entry as opposed to the deregulation experiments
of the 1970’s.

New York. New York’s yellow cabs are a well-known example of a regime that caps the number
of taxi license availability. When new licenses are auctioned by the city, they can yield as much
as $1 million for the right to operate a single yellow taxi. Less well known is that New York’s
dispatch market is open-entry. There is no limit to the number of vehicles that may enter the
dispatch vehicle-for-hire market. New York also undertook major technological reform recently
leading to the regulator having close to real-time access to each taxicab trip in terms of fare,
origin, destination, and route.

Phoenix. In the late 1970’s a number of U.S. cities experimented with full deregulation of taxis,
lifting limits on taxi numbers, deregulating meter rates, and other restrictions. Most of these
cities were unsatisfied with the results and restored more traditional regimes. Phoenix is of
interest because it retains an essentially deregulated environment, with unregulated meter
rates and minimal vehicle standards.

San Francisco. San Francisco is an example of a mature system that switched to driver-owned
taxi licenses and forbade transfer of licenses. It provides a long-term view of the advantages and
disadvantages of moving strongly to protect driver income. Among the current challenges are
the increasing age of taxi drivers, who must remain active to retain their licenses.

Seattle. Seattle is another city that deregulated in the late 1970’s. In contrast to Phoenix,
Seattle is one of the many cities that returned to setting a cap on the total number of taxis.

Toronto. Toronto is a classic license limited regime. It has two points of interest for this study.
One is that it has experimented with a large increase in the taxi fleet using a special license
restricted to owner/drivers, whose drivers had to complete substantial additional training.
Toronto also has a large and well-established taxi driver-training program that it markets to
other jurisdictions. Toronto has launched a thorough review of taxi bylaws, with results
expected this year. It also has a standardized language proficiency test established within a
broader Canadian standard of graduated language proficiency for different occupations.
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Taxicab Regulation in North America 3
City
Boston
Chicago
Indianapolis
Las Vegas
Los Angeles
Minneapolis
New York
Phoenix
San
Francisco
Seattle
Toronto
Washington
DC
Table 1: Population and Taxis Per Capita
Approx.
number of
taxis
Population
(including
Taxis per
(US Census
dispatch
10,000
Jurisdiction
2010)
only)
people
City of Boston
617,594
1,825
29.6
City of Chicago
2,695,598
6,900
13.9***
City of
Indianapolis and
903,393
800
8.9
Marion County
Clark County
1,951,269
(includes Las
Las Vegas
2,409
12.3***
Vegas)
583,756
City of Los
3,792,621
2,361
6.2
Angeles
City of
382,578
687
18.0
Minneapolis
New York City
8,175,133
51,353
62.8
State of Arizona
6,392,017
(including
Phoenix
2,000
13.8
Phoenix)
1,445,632
City and County
of San
805,235
1,500
18.6
Francisco
1,110
City of Seattle
608,660
14.0
City of Toronto
District of
Columbia
Estimated
number of
drivers
6,000
10,500
5 km fare
($USD)*
$10.90
$7.64
900
$9.21
4,700
$11.18
8,000
$10.94
1,300
$10.49
50,000
$8.31
2,000
Not
regulated
7,000
$11.49
1,200
$10.02
2,615,060
4,968
19.0
10,000
$12.85
601,723
7,000
116.3
8,000
$7.41
* 5km distance fare excludes any time charges for slow traffic or when the taxi is stopped. Fares are calculated on a
pro-rated basis, rather than "on the nickel" to ensure a smooth comparison between cities. U.S.fare distances
converted from miles to kilometers.
** Canadian fares converted to $USD. Canadian 2011 Census population used.

Washington DC. Washington DC is one of the few large U.S. cities to retain an open entry
system. While the number of taxis is not capped, a temporary freeze on new company permits
was imposed in November 2010, and has recently been extended. (Established companies can
still put additional cars on the road.) Washington has one of the highest per capita taxi service
levels in North America. While taxi availability is generally very good, concerns about quality led
to the suspension of new permits pending a thorough review.
Because this sample has been selected for interest, there is an over-representation of unique cases. The
analytic sections will indicate which cases are closer to the norm (where a norm can be said to exist).
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4 Taxicab Regulation in North America
The selected cities include the three largest U.S. municipalities (New York, Los Angeles, and Chicago) and
the largest Canadian municipality (Toronto). The other cities are also large, ranging from the sixth largest
U.S. city (Phoenix) to the 48th largest (Minneapolis). The sample is representative in the sense that it
covers a good portion of the population served by taxis. Table 1 shows population and taxis per capita of
each city.
2 Terminology
Terminology in taxi regulation varies widely from jurisdiction to jurisdiction. The meaning of the same
term may vary from city to city, and country to country. For example, vehicle for hire tends to be a
generic term in North America, referring to licensed vehicles that provide any kind of public service,
whether it is prearranged, dispatch, or street-hail. In other countries, the phrase for hire may refer to a
vehicle that is only permitted to take prearranged or dispatched fares. For the purposes of this paper,
the following terms will be used:

A taxi, taxicab, or cab is a vehicle that is licensed to pick -up street hails and/or stand in
designated public areas to wait for customers. In most North American jurisdictions, a taxi may
also take pre-arranged fares by dispatch, cell-phone, or internet application.

A limousine is not taxi. With exceptions in some jurisdictions, a North American limousine is
commonly a separately licensed class of service that takes prearranged calls. In most regimes,
the limousine is required to be a luxury vehicle, and is required to charge a fare that is usually
much higher than a taxi. These restrictions are imposed to prevent limousines, which are not
limited in total numbers, from competing with taxis, which are usually limited in numbers. The
net result is that both taxis and limousines may serve the dispatch market, but limousines end
up serving a smaller luxury market. A common further restriction is that limousines must be
booked a number of hours in advance, as opposed to on-demand dispatch service.

A medallion or plate is the license to operate a taxi vehicle. They take their name from the
identifying device the taxis must display. For example, the New York medallion takes its name
from the metal medallion bolted onto the hood of taxis. Other cities may use the term
medallion even though a taxi license takes the form of the usual square metal numbered plates.
Such cities may also reserve the use of the term “license” for drivers’ licenses, and refer to
vehicle licenses as permits.

Open entry, as opposed to “deregulated,” best describes a jurisdiction that has deregulated
entry requirements, removing the cap, but has retained other forms of regulation such as
maximum meter rates, relatively stringent vehicle standards and driver training.

Street-hail is literally the hailing of a taxi from the street by a customer. This is not legal in all
cities. Thus the street-hail market may also include other forms of walk-up traffic, such as fares
taken from a taxi stand.

Taxi stand is a location where taxis line-up to await fares. Most cities have designated curb
spaces for taxis to stand. Private properties may also establish stands, such as hotels, bars, pubs,
airports and railway stations.
3 Jurisdiction
Similar to Australia, responsibility for regulating taxis and vehicles for hire fall to individual states within
the U.S., and the provinces of Canada. Most states and provinces choose to delegate responsibility to
individual municipalities, with the following exceptions:
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Taxicab Regulation in North America 5

Direct State Administration. The States of Arizona and Nevada control taxi regulation at the
state level. For instance, the city of Phoenix, Arizona, has very light regulation, established at
the state level, while Nevada has established a state-level agency, the Nevada Taxicab Authority,
which deals only with Las Vegas and surrounding Clark County. Washington D.C., receives its
mandate directly from the federal government, as it is not in any state. The Washington Taxi
Commission is appointed by the elected municipal government through delegated federal
authority. The State of New York, while delegating most authority to the city, fixed the total
allowable number of taxicabs in state legislation, making it particularly hard to change.
Limousines in the U.S. are also commonly regulated at the state level, with open entry regimes.
On occasion this leads to a lack of cohesion in the broader car-for-hire strategy.

County delegation. Most large cities in the U.S are not fully independent entities. Instead, they
fall within counties. The U.S. Census bureau uses the county, rather than the city, as their base
unit for population reports. Functions are split between county and city levels. For the present
work, this distinction in jurisdiction is usually not material. For example, the cities of Boston and
Los Angeles fall under their respective counties, but both are also the administrative seat of the
counties, and taxis for each are administered at the level of the city. Other cities are formally
consolidated into one entity (city and county of San Francisco, city of Indianapolis and Marion
County), or share the same borders as the county (New York). Seattle provides an interesting
case where the city and surrounding King County have a formal co-operative agreement,
resulting in a seamless service, reducing administrative burdens.

Selected Canadian Provinces. Three of Canada`s thirteen provinces and territories administer
taxi regulation directly. Quebec and takes direct responsibility for numbers of taxis permitted to
operate, and meter rates; while delegating other aspects municipally. British Columbia does the
same through its provincial Passenger Transportation Board. Manitoba has only one major city,
Winnipeg, whose taxis are regulated by a provincially appointed body.
4 Taxi Licensing and Entry Management
As with many parts of the world, the vast majority of North American cities limit the total number of
taxis permitted to operate. This often termed closed entry, or the medallion system (as per New York).
The history and rationale for closed entry centres on excess supply during economic recessions – a topic
discussed further below under open-entry regimes.
The rights to these permits can acquire significant value, up to $1 million in the case of a New York
medallion. Control of these licenses, and how they are issued, is a key defining characteristic of taxi
regulatory regimes. Table 2 summarizes the licensing regimes of the sample.
4.1 License Issue
Most regimes do not have a formula or regular annual process for assessing the number of licenses
required, or for issuing additional ones. In the sample, only two cities have a formula; Seattle and
Toronto:

Seattle. Seattle’s formula is not a precise one. The municipal code empowers the regulator to
issue up to 35 additional licenses per year, if needed, based on the following factors: average
service response times, total number of taxi rides, total paid trips per taxicab, and average
operating hours per taxicab, and any other factors that may affect the supply and demand for
taxi service within the city limits.

Toronto. In 1998, a guideline formula was established based on a weighted average of
population growth, employment growth, public transit (TTC) ridership, and convention
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6 Taxicab Regulation in North America
delegates. The weights were estimated statistically by analysing the relationship between
potential demand factors and growth in taxi demand, measured indirectly using statutory
declarations of driver incomes required by Toronto at that time. At present, this formula has
fallen into disuse following a massive expansion in taxi numbers through the issue of
owner/driver vehicle permits. Permits are slowly being withdrawn from active use, as
surrendered permits are not reissued.
A 2010 study by Hara Associates found a similar pattern in other cities (Table 3).1 Of the ten cities2, only
the Canadian city of Mississauga actively applies a formula annually. The city of Ottawa has a per capita
formula in its bylaw, but it is not applied.
More generally, cities with license limits tend to review the numbers of licenses only intermittently, such
as when shortages or declines in service become severe enough to drive a review. Where cities do have
a formula embedded in their bylaw, as in Ottawa, this does not necessarily mean the formula is applied.
Unless the bylaw also establishes a mechanism for determination and distribution, and assigns
responsibility for execution, there is no guarantee of application.
An alternative to license issue that falls short of open entry is the public convenience and necessity
regime (PC&N). Las Vegas (Clark County) is an example. This is an older model that has a long history in
transportation licensing for everything from trucking to airlines. New entrants must apply for a license.
In addition to proving they are qualified, the new entrant must prove that their services are needed,
meeting the tests of public convenience and necessity. Applications brought to public hearings, where
other interested parties may intervene, notably the current service providers. Since the burden of proof
is on new entrants, the PC&N regime is often criticized for creating significant entry barriers for new
competitors. One modification to this approach is seen in Denver, Colorado, where the burden of proof
is shifted to interveners to show why the entrant’s application should be denied.
4.2 Classic Regime
The classic North American regime, as most closely represented by Boston, Chicago, and Seattle,

is a closed-entry with a cap on the total number of taxis; and

places control of the taxi vehicle permit with the owner, who may be a driver, a taxi company,
or any other party seeking to operate the vehicle as a business; and

permits transfer of the vehicle permit between parties, either independently bundled with the
vehicle.
Typically, licensed taxis serve both the hail and the dispatch markets. Taxi drivers who do not control a
license pay a lease rate for a shift or for full control of the vehicle to either a taxi company or, in the case
of a second shift driver, to the first driver. The terms of the lease are usually fixed fees per shift, per
week, or per month. Drivers keep the actual fares collected as a residual, motivating them to work long
hours and to allocate themselves efficiently among neighbourhoods and dispatch zones.
In mature regimes, significant value has accrued to taxi permits as the issue of new licenses falls behind
civic growth and associated expansion of taxi demand. This in turn affects industry structure. To protect
their ability to operate, and possibly to deter entry, larger taxi companies tend to consolidate control of
1
Hara Associates (2010). Taxi Supply Demand Ratio for Calgary: Phase I.
Los Angeles and Toronto were included in the 2010 study but have been excluded from Table 2 in favour of the
updated Table1 information.
2
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Taxicab Regulation in North America 7
licenses, resulting in relatively few companies. Vertical integration also occurs. For example, taxi vehicle
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8 Taxicab Regulation in North America
Table 2: Licensing Regime
Jurisdiction
Approx.
Number of Taxis
Method of
Managing Entry /
Licensing Regime
Regulated
Leasing Rate
(/shift)
If
Transferable,
Market Value
Adjustment
Formula
Discretion of
Police
Commissioner
Method of
Issue
Boston
1,825
Fixed cap
$77
$400,000 –
$525,000
Chicago
6,900
Fixed cap
$57
$275,000$300,000
No formula,
reviews based
on PC&N
Auction
Indianapolis
800
Open entry to
qualifying
applicants
Not regulated
No
Not
applicable
On demand
Not regulated
No
No formula,
burden of
proof on
applicants
Granted to
successful
applicants
Not regulated
$10,000$50,000
depending on
franchise
Companies may apply for
increases in vehicle numbers
during franchise term.
$85
No
Not
applicable
On demand
No formula
Auction
Las Vegas (&
Clark County)
2,409
Los Angeles
2,353
Minneapolis
687
Public
Convenience &
Necessity
Hearings.
Companies with
10-year franchise
may apply for
more cars.
Open entry to
qualifying
applicants
Auction
13,237 Street Hail
taxis.
Cap fixed by State
legislation
$93
(Owner-driver)
$650,000
(company)
$1M
35,340 Dispatch
and limousine
vehicles for hire
Open entry to
qualifying
applicants
Not applicable
Not applicable
No formula
On demand
Phoenix
2,000
Open entry to
qualifying
applicants
Not regulated
No
Not
applicable
On demand
San Francisco
1,585
Fixed cap
$96.50
$250,000
(administered
maximum)
No Formula
Seniority of
drivers
New York
850 Taxis
Seattle
Toronto
260 Dispatch only
vehicles for hire
1400 new
Ambassador
(owner-driver)
plates
3,552 Standard and
accessible plates
Formula (35
per year)
Cap fixed by
ordinance
$75
Cap fixed by city
council
Not permitted
No
Formula
(disused)
No longer issued
Not regulated,
but must be
reported
$160,000
No new plates being issued
$113,000
Lottery
No Formula
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Seniority of
drivers
Taxicab Regulation in North America 9
Washington DC
7,000
Open entry to
qualifying
applicants
Not regulated
No
Not
applicable
On demand
(temporary
freeze in
place)
Table 3: Additional Licensing Regimes from 2010 Review**
Population
# of Taxis
Ratio of
All Taxis to Method/Formula For
Estimated Plate
City
2010
10,000 Additional Taxi Licenses
Value
Regular
Accessible Total
(Projected*)
Population
Calgary
1,071,515
1,311
100
1,411
13.2
Fixed in Bylaw.
$150,000
Not transferable.
No formula. Modified
Tied to company
Denver
2,554,474
1,072
30
1,102
4.3
public convenience &
operating
necessity regime.
authorities.
Non-transferable.
Edmonton
782,439
1,185
35
1,220
15.6
No formula.
$100,000
Formula. Average of
population growth and 20,000 to 40,000
Houston
2,260,918
2,170
100
2,270
10.0
growth in airport taxi
$USD
trips.
515
Formula. Based on
Transferable (except
(plus
growth in dispatch trips,
for accessible)
Mississauga 734,018
483
32
152 at
7.0
general business
$180,000 to
Toronto
indicators and taxi
$200,000
airport)
industry indicators.
No formula. Number
fixed in provincial
regulatory order.
Transferable,
Montreal
1,713,058
4,445
150
4,595
26.8
Changes subject to public $220,000
hearings. Number
unchanged for 20 years.
Per capita formula in
bylaw. Accessible taxis Transferable (except
Ottawa
925,293
1,001
165
1,166
12.6
are in addition to
accessible) $250,000
formula.
120
Transferable.
125 to
No formula. Number
Regina
198,116
plus 44
5
8.6
$150,000 to
171
fixed in bylaw
seasonal
$180,000
No formula. Provincially
408
Transferable (pre
administered public
Winnipeg
683,200
plus 80
22
501
7.3
2001 plates only)
convenience and
seasonal
$400,000
necessity regime.
No Formula. Public
Transferable
Vancouver
629,844
476
113
589
9.4
convenience and
$400,000 to
necessity regime.
$500,000
*Projected population for U.S. Cities based on 2009 Single Year Estimates, U.S. Bureau of Census. Population for Canadian
cities based on civic estimates projected to 2010 using Statistics Canada reference projections for the associated Census
Metropolitan Area (CMA).
** Source: Hara Associates (2010). Taxi Supply Demand Ratio for Calgary: Phase I.
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10 Taxicab Regulation in North America
rental happens as a separate business in open-entry cities such as Washington DC, but becomes part of
the integrated taxi/dispatch operation3. Similarly, it is common for dispatch operations to be
consolidated into the operation of the taxi company, so that only a single class of license exists for taxi
companies as a combined broker/dispatch/colours operation.
Other typical features of the classic model include:

Rate regulation. Meter rates are usually defined in regulation.

Driver and Vehicle quality regulation. Standards are set for both drivers and vehicles. Degree
of testing, training, inspection and enforcement vary substantially by jurisdiction.

Segregated limousine market. Limousines, usually defined as pre-booked luxury cars, are
typically regulated separately and not subject to limits on total number. Since taxi licenses are
limited and in short supply, there is market pressure for limousines to step in and provide ondemand dispatch and street-hail services. Allowing this would defeat the purpose of capped taxi
numbers. To keep the markets separate, it is common to impose minimum fares for limousines,
set limits on the kind of vehicle that can be used (expensive luxury cars), and/or require a
minimum time for advance booking. Further,, limousines are often required to have a copy of
the contract with their passengers if stopped by a peace officer acting for the regulator. Such
requirements are difficult to meet given the type of clientele who seek limousine service. The
well-heeled customer does not want to bother with the paperwork. The net result is limousine
companies may comply with the market separation to avoid raising the issue and attracting
higher levels of enforcement.
Common challenges faced by the classic closed entry regimes include:

Taxi Shortages and Market Failure. The issue of new licenses tend to intermittent even when
there is, in theory, an adjustment formula in place. High medallion/permit values entrench
themselves by creating strong industry interest. Interest on the user side is widely dispersed,
with few users having sufficient stake to appear at hearings. When significant medallion values
do exist, it can be shown that there is a sustainable combination of lower meter rates, shorter
wait times, and more taxis that would better serve the public..

Poor service to neighbourhoods & failure of dispatch market. As the supply of taxis becomes
restricted, fewer markets can be served. Those that are served will tend to be high volume
downtown areas, where idle time travelling to a new fare is low, and higher income areas,
where risks may be lower and tips higher. Depending on the severity of the underlying shortfall
in taxi supply, there can be a market failure in the dispatch market. At some point, taxis
dispatched to a residential address are likely to encounter a more convenient flagged fare along
the way, and fail to fulfil the dispatch call. As this behaviour becomes more frequent, dispatch
customers also begin strategic behaviour, calling more than one company and searching for
alternate means even after being promised a dispatch taxi. Increases in customer no-shows
mean taxi drivers are less willing to take dispatch calls. A negative cycle leading to very poor
dispatch service can follow. San Francisco has reported such problems. Previous studies of San
Francisco have shown dispatch failure rates greater than 50%, although this may be improving
with the integration of Internet taxi apps with company computer dispatch.
3
Also observed pre-closure in the Canadian city of Halifax. Hara (1997). A tale of two cities: Open Entry in Two
North American Cities. 1997 Annual Meeting of the International Association of Transportation Regulators (1997)
Hara Associates (1994) City of Halifax Taxi Licence Limitation Study.
Hara Associates
Taxicab Regulation in North America 11

Lagged Meter Rates. Changes to meter rates usually require approval of elected
representatives of the city or state. Given the issues surrounding medallion values, industry
stakeholders are often reluctant to bring the issue of meter rates before city council or state
bodies. As a result, taxi meter rates can go unadjusted for a number of years until rising costs
force the issue, or a spike in the price of fuel provides motivation and cover. The lagged meter
rates can exacerbate taxi shortages by allowing the inflation-adjusted price of taxi trips to fall,
expanding demand without corresponding adjustments in taxi supply.

Low Driver Incomes. Low taxi driver incomes are often a concern to regulators. Taxi drivers are
commonly understood to work long hours for low returns. Caps on taxi numbers often have
their roots in measures to protect taxi driver income during periods of economic recession and
excess entry into the industry (see open-entry discussion below).However, the caps do little to
assist the income of drivers who were not fortunate enough to have or acquire taxi vehicle
permits early when a cap was imposed. The extra income created by limiting taxi licenses
accrues to those who control the permits. Drivers who do not have permits must pay those who
do, even if they are able to provide their own vehicle. In regimes where such explicit payment is
illegal, the effective rate can be bundled with dispatch services, vehicle lease, etc. The net result
is that the permit-less driver group will include many who are earning a marginal income net of
their lease payments.
4.3 Owner-Driver Regimes
One approach to promoting driver income is to promote the role of owner-driver in the industry. The
owner-driver has direct or indirect control of their taxi vehicle permit as well as, presumably, the vehicle
itself. Owner-drivers are thought to enhance service quality through their longevity and experience.
They tend to know the city better, and know how to deliver better service and earn better tips. Their
longer-term view may also lead to investment in better and safer vehicles.
Two examples of cities that have aggressively pursued owner-driver regulatory strategies are Toronto
and San Francisco.

Toronto. In 1998, Toronto was a classic closed entry regime with full transferability of taxi
vehicle permits. In addition to a perceived shortage of taxis, there was the issue of visibility of
the lease payments by drivers to taxi permit holders. As a tradable investment, these included
investors who had little connection with the industry, such as groups of doctors or dentists. In
1998, Toronto initiated its Ambassador program. Ambassador license plates were issued to
drivers who completed an extra training course (40 days, with exam) on top of regular training,
to enable them to provide tours of the city, and otherwise function as Ambassadors to visitors.
The plates could be used only by the driver, and were non-transferable. A total of 1,400 were
issued, a 40% increase in the number of taxis (arguably 20% given that the taxis were singleshifted by definition). The increase at the initiative of council was twice the number
recommended by Toronto’s then newly developed taxi license formula. The intention was to
issue all new taxi licences under the Ambassador program, but the issue of further licenses has
been limited as the market absorbed the new taxis.
The ambassador program was largely perceived as a success relative to the old system. It added
income to a large group of drivers who had demonstrated their commitment to the industry. It
also complemented Toronto’s program to professionalize all drivers. The new driver-training
program consists of 17 days of instruction, with a graded exam, followed by four-day refresher
course every four years. In addition to increasing service quality, the training programs arguably
raises lease driver income indirectly by raising the bar for entry to the profession.
Hara Associates
12 Taxicab Regulation in North America
However, it has taken the market some time to absorb the additional taxis. The classic permits
continue to exist and have only recently recovered their old market values. Toronto has not
been reissuing some Ambassador permits that have been surrendered, and the number of cabs
in operation is slowly falling. An early challenge faced by the program was estate cases.
Children or spouses of deceased or incapacitated drivers sought unsuccessfully, through the
courts, to have the Ambassador license passed on to a qualifying family member
More recently, Ambassador Plate holders have complained that they are second-class citizens
relative to the old permit holders, since they cannot transfer or lease with the same freedom.
The issue is complicated by race and ethnicity. When the Ambassador program was established,
the majority of taxi drivers were visible minorities from recent waves of immigration to Canada.
While the initial issue of Ambassador plates was empowering for this group, after time it can be
perceived that classic permit holders are more privileged, and are less likely to be a visible
minority. Toronto’s licensing system is currently under review in a Mayor and Council-led
initiative.

San Francisco. As a result of growing concerns over inequities in the taxi industry, a 1978
binding plebiscite established an owner-driver based medallion system. The majority of taxi
permits, and all new permits are issued to owner-drivers. These medallions are non-transferable
and must be held by an active driver to be retained. These drivers must log a minimum number
of hours per year and, unlike Toronto drivers, are also entitled to lease their taxis out to other
drivers.
Success. Medallion driver incomes were successfully raised, and the attachment of these drivers
to the industry has resulted in a very experienced workforce. The industrial structure of the San
Francisco industry also appears very similar to an open entry industry. Dispatch services can and
do exist as separate entities from car leasing and taxi companies. Taxi colours (brands) are
separately registered and licensed. A colour may exist independent of dispatch or vehicle
leasing company. Competition exists between companies through competition for medallion
drivers as clients, and through attracting customers.
Challenges. As the system has matured, the long-term implications have emerged in the form of
aging drivers. Drivers keep active to retain the medallion and its valuable lease income from
other drivers. Their average age is very high, as is the average age of qualified drivers on the
waiting list – which was filled to capacity long ago. The SFMTA is currently experimenting with
an auction program allowing a limited number of older eligible drivers to transfer medallions to
those on a waiting list for a fee not to exceed $250,000. As discussed below under lease rate
controls, the income of lease drivers also remains problematic.
The experience of Toronto and San Francisco raise an important point about programs to put vehicle
permits back in the hands of individual taxi drivers. To prevent reversion to the old system as drivers
sell their permits, such programs must consider restrictions on permit transfer, and require drivers to
continue to be active. Where successful, these systems will later meet the issues of an aging workforce
and generational transfer. Even the short run, there will be cases where breadwinners acquire a
valuable permit, perhaps with some sacrifice, and encounter health issues that leave their family in
difficult financial situations – well before the investment is recovered.
A lesser-known risk also accompanies owner-driver programs among cities who have only recently
become closed-entry, or whose taxi supply restrictions are not so tight that double-shifted taxis are the
norm. As the owner-driver program becomes successful in raising driver incomes, these drivers naturally
desire to work less than the sixty hours per week they may have known. In a single-shifted
Hara Associates
Taxicab Regulation in North America 13
environment, when these drivers go home, so does their taxi. This leads to shortages in the late evening,
particularly in responding to entertainment districts and bar traffic. While such drivers could lease their
vehicles to a second or third driver, the switch point decision is not smooth. There is a fixed cost of
inconvenience in not being able to use your taxi as a personal vehicle. In addition, not all taxi drivers are
well suited to supervising a second driver, or sharing a vehicle. Thus, there will be intermediate points
where revenue per taxi is good enough to cause the driver to work shorter hours, but no so good as to
persuade most drivers to put a second shift on the taxi. Hara Associates has observed this issue in three
recently closed (within last 25 years) Canadian jurisdictions: Edmonton, Calgary, and Halifax. Each of
these jurisdictions has experienced shortages in the evening and weekend peaks as taxi driver incomes
rose.4
Los Angeles’ franchise system also has owner-driver features through its emphasis on co-operative
driver-owned companies (see Los Angeles Franchise System below).
4.4 Regulation of Driver Lease Rates
Driver incomes may be addressed by strategies other than patriation of vehicle permits to drivers. A
common strategy among U.S. cities is the direct regulation of the lease rates that drivers without
medallions may be charged for the bundle of taxi vehicle, and medallion. The focus of these policies is
the driver who lacks both vehicle and vehicle permit, as compared to the owner-driver policies above.
Regulating lease rates is not widely practiced in Canada, but is common in the United States. Six of the
U.S. cities in our sample do so (Table 2: Boston, Chicago, Minneapolis, New York, San Francisco, and
Seattle). San Francisco’s efforts complement its other initiatives promoting owner-drivers. Regulated
rates range from $57 to $98 per shift between cities, covering varying packages of services.
If the lease ceiling is less than the market would otherwise determine, and if enforcement is effective,
then regulating the leases must help drivers. However, like any other price control, there are challenges
in implementation. With a gap between the potential market price and the controlled price, there is an
incentive for contracting parties to bypass the system. This can happen illegally through tips and bribes,
or quasi-legally by bundling extra payments with other services such as insurance or dispatch service, or
access to private stands.
The regulators surveyed largely did not report problems with enforcing lease rates. However it is not
clear whether this meant the policies were working, or that the price controls were being bypassed by
the industry. For example, a progress report by Seattle raised the possibility that the lease ceiling was
set higher than the current market due to a general economic recession.5 In a different case, San
Francisco offers a unique opportunity to see the issues. Because it is an owner/driver regime, the taxi
companies are largely agents between individual medallion holders and lease drivers. This reduces the
ability of the companies to bundle extra lease payments from drivers with other services. Lease drivers
in San Francisco complain that they must pay significant tips each day, routinely passing over cash along
with their daily request for a car. Those that do not tip enough may end up going to the bottom of the
request list and waiting fruitlessly for a vehicle. In parallel, the regulator reports that medallion holders
are escaping the “gas and gate” fee regulation by moving to longer-term “affiliate” relationships.
4
Hara Associates (2007). Assessments of Changes in Edmonton Taxi Demand & Supply; Hara Associates (2009).
Hara Associates (2010) Taxi Supply Demand Ratio for the City of Calgary; Phase I Assessment of Current Service;
Forthcoming Hara Associates (2012): Halifax Airport Ground Transportation Study.
5
City of Seattle, Dept. of Finance and Administrative Services (2010); Taxicab Services Report to the Seattle City
Council.
Hara Associates
14 Taxicab Regulation in North America
4.5 Underserved Neighbourhoods – License Requirements
Two sample jurisdictions take notable measures to address under-served areas and neighbourhoods.


Chicago. Chicago has identified ‘underserved areas,’ that include all areas outside of the city
core and the airports. Multiple programs include:
o
Tax credit. Medallion holders receive credit for up to 50% of taxes due, based on the
proportion of fares either picked up, or dropped off in underserved areas.
o
One-call-a-day program. Each taxicab is required to respond to at least one call for
service originating from an underserviced area in each 24-hour period of operation.
Wheelchair accessible vehicles that pick up disabled passengers are considered to have
satisfied this requirement. Affiliated companies are also required to provide drivers
with enough requests to fill this requirement.
o
Extended trip refusal test. Drivers have an affirmative duty to accept passengers from
underserved areas. Public chauffeurs seeking to renew their license must demonstrate
that they have upheld the commitment not to refuse service based on prohibited
discriminatory grounds of race, gender, ethnicity, or geographical location.
o
Special license issue. From 1998 to 2000 licenses were issued to qualified economically
disadvantaged drivers. These taxis were required to operate exclusively in underserved
areas a minimum of eight hours a day, three days per week. They were able to
discharge passengers at any location, but could only accept passengers in underserved
locations. After an initial period, these licenses convert to regular licences.
Las Vegas. Clark County and Las Vegas have 2,393 licensed taxicabs. Only 1,361 of these
medallions are unrestricted “24/7”, while others are restricted by time or geography. About 700
are restricted by time of day to cover peak demand, while others are restricted by geographical
regions. These restrictions prevent excessive crowding in ‘The Strip’ where fares are most
abundant, ensuring service to less dense neighbourhoods. Note that Las Vegas has a strong
level of staffing funded from industry fees that may assist enforcement of geographic
restrictions.
Proposed New York Borough Taxis
In the past, license restrictions by time and geographic zone were difficult to enforce. However, new
GPS capabilities of modern computer dispatch systems, combined with reporting computer readable
data to regulators, opens new possibilities for cost-effective regulation in this area. It is possible to know
where a taxi is at any given moment, and identify violations by computer search.
A potential case of this is New York’s proposal to issue 18,000 new medallions to “borough” taxis,
intended to serve the hail market in geographic areas not well served by their current medallion yellow
taxis. See New York and Boston discussion below under vehicle equipment and performance monitoring.
4.6 New York – A Hybrid Regime
A distinguishing feature of New York’s system is its dual approach to license limitations. New York’s
yellow taxis are well-known world icons. The high price for one of New York’s limited yellow taxi
licenses, over $1 million at times, is also well known. When new yellow taxi licenses are needed, they
are auctioned, with revenue going to the City.
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Taxicab Regulation in North America 15
Less known is that the yellow taxis only serve one segment of the market: street hails. Licenses to serve
the dispatch and pre-booked market are not limited in total number. There is no value in the vehicle-forhire permit independent of the value of the actual vehicle or company. Thus the dual nature of the
approach: open-entry for the dispatch market, and controlled numbers for the street-hail market served
by the yellow taxis. A rationale for limiting the number of yellow taxis can readily be seen when looking
down on the street from tall buildings in Manhattan, the high-density island in the city centre. Yellow
taxis can make up more than half the vehicles at a stoplight. Higher numbers would lead to congestion.
The urban density of downtown New York also means very high parking costs. These in turn lead to low
car ownership, high use of yellow-taxis for travel, and a large market for “black-car” transportation by
New York executives commuting daily from more suburban locations to downtown.
A challenge for the New York system has been lack of coverage by the yellow taxis of neighbourhoods
outside of downtown, and of low-income neighbourhoods within the city centre. When a shortage
developed in the 1960’s, a “gypsy cab” industry (mainly livery cars cruising for fares illegally) began to
flourish, especially in underserved neighbourhoods. In recent years the TLC has initiated a program of
licensed community taxis who may serve a geographically limited area – providing former gypsy taxis
with an opportunity to fulfill community demand on a legitimate basis.
More recently, New York has garnered world headlines with a plan to auction 2,000 more yellow taxi
licenses, with potential revenue on the order of $2 billion. In addition, New York may license as many as
18,000 new “borough” taxis to serve the street-hail market outside of the yellow-taxi core service area
of lower Manhattan. The borough taxis will address the long-standing complaint of lack of hail service in
the outer areas.6 These will have a standard colour other than yellow, and be available at a more
affordable $1500 for a three year permit, issued on a first-come first serve basis to current licensed
vehicle-for-hire drivers.
4.7 Los Angeles – The Franchise System
Los Angeles is one of the few large North American cities in that use a franchise system, which is based
on limited term franchises to serve different geographic zones. Los Angeles’ example has been followed
in recent years by Austin, Texas, and Anaheim, California.
Los Angeles’ zone system appears to help alleviate low service problems in less central areas. Taxi
companies bid on franchises to serve particular areas of the city. The areas overlap to encourage
competition. Franchise contracts are for up to 10 years, including allowed extensions.7 The franchises
are conditional on meeting performance standards. Performance is monitored regularly through reports
prepared by companies based on data drawn from computer dispatch systems and telephone systems.
When there are systematic performance issues, a company may be placed on probation, suspended, or
fined. Repeated failure to meet service standards may result in a recommendation to the governing
Board to have the franchise terminated.
It should also be noted that all but one of the franchise holders are co-operatives organized around
owner/driver shares. Thus Los Angeles may also be considered an owner-driver city.
4.8 Open Entry Regimes
6
The borough taxi licenses are also being termed “HAIL” licenses.
Recently, expiring franchises were extended for another five years without bidding. This took place in the broader
context of an ongoing crisis in California State and local finance.
7
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16 Taxicab Regulation in North America
A final category of regime is open-entry, where the number of taxis is not capped. In our sample, this
includes Indianapolis, Minneapolis, Phoenix, and Washington DC. New York, our hybrid regime, should
also be included for its unrestricted dispatch market. Before reviewing these regimes, it is helpful to
review the history of closed- entry, deregulation, and open entry in the United States. The review will
clarify the distinction between open-entry and deregulation, two approaches that are often wrongly
lumped together.
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Taxicab Regulation in North America 17
Context & History
Limitations of the number of taxicabs became a common strategy in North America in the 1930’s. It is
generally assumed that this was because of the Great Depression, with many anxious job seekers
flooding the taxi market. This was aided by the increase in private car ownership during the 1920`s, (just
a few years after Henry Ford introduced mass production). All that was required to set up a taxi
business was a driver’s license and access to a borrowed car. The situation in New York was well
documented by Schreiber8, where rapid expansion in the 1920’s led to price wars, congestion, and
threats to public safety from poorly maintained vehicles. Cab numbers were limited only in 1937.
The vulnerability of the taxi industry to excess entry during economic downturns is generally recognized.
The consequences are thought to be a decline in service quality due to an influx of new inexperienced
drivers, with vehicles in poor condition. The influx may also drive out better quality providers and
experienced drivers, particularly in the taxi and street-hail markets, where the potential passenger has
difficulty recognizing the quality of the taxi prior to boarding.
However, closed entry also has its disadvantages. Over time, the number of taxis is rarely adjusted
sufficiently to keep up with municipal growth. The limited taxi licenses become valuable shares in a joint
monopoly, and trade for significant sums (up to $1 million in the case of New York). Whenever such
values occur, it can be shown that there is a viable combination of more taxis and lower meter rates that
better serve the public. In addition, closed entry tends to reduce competition as existing taxi companies
seek security by consolidating control over the licenses. Where transfer is permitted, a closed entry
system tends to have only a few companies sharing control of the available licenses. New entry without
the ability to field new licensed taxis is not possible. As well, limited licenses typically aggravate poor
service in some neighbourhoods, as the limited taxis withdraw to serve the more lucrative high income
and high density areas.
Failure of Deregulation in the 1970`s
The 1970’s saw widespread support for deregulation in a number of industries, ranging from telecom to
airlines to . . . taxis. As documented by Teal et al (1987), a number of U.S. jurisdictions deregulated
taxicabs. 9 In addition to removing limits to the number of taxis, controls over meter-rates were typically
eliminated, and other regulations, such as extra vehicle inspections and driver testing, were also relaxed.
The results of these taxi deregulation experiments were mixed at best. Although the supply of taxis
expanded dramatically, fares often went up instead of down, and total cab usage often went down,
which reduced incomes for companies and drivers.10 Long cab lines usually emerged at major sites like
airports, frustrating drivers. Seattle is well known for its decision to re-regulate a few years later,
removing the caps on license numbers. Many other cities followed suit.11 Phoenix, in our sample, is an
exception.
8
Schreiber, Chanoch, “The Economic Reasons for Price and Entry Regulation of Taxicabs”, Journal of Transport
Economics and Policy, September 1975, pp. 268-279.
9
Teal, Roger F., and Berglund, Mary, “The Impacts of Taxicab Deregulation in the USA, ”Journal of Transport
Economics and Policy, January, 1987, pp. 37-56.
10
ibid.
11
Of the ten cities identified by Teal and Berglund, the majority (six) have returned to closed systems at the time
of writing. The re-regulated US cities include San Diego, Seattle, Sacramento (recent freeze in 2011), Kansas City,
Oakland, and Portland.
Hara Associates
18 Taxicab Regulation in North America
Deregulation vs. Open Entry in the 1990`s
The 1990’s saw some cities revisit the question of license limits on a more limited basis. Rather than
eliminating rate regulation and quality controls, the focus was on entry management alone. For example
Indianapolis and Minneapolis have more recently removed limits to licenses, but maintained regulation
of maximum meter rates (companies can reduce their meter rates as long as the discount applies to all
cars) and other aspects of taxi regulation. This approach is best termed open-entry, and should be
considered differently from cases of broad deregulation.
Open-Entry Today
The open-entry cities in our sample represent very different policy experiments:

Phoenix. Phoenix was deregulated in the 1970’s as part of a broad deregulation of all motor
carriers by the State of Arizona. It is one of the cities that did not re-regulate. Under
deregulation its taxi numbers jumped 80%, but fares also rose substantially, the industry
suffered, and consumer abuses increased.12 Abuses at the airport were particularly marked.
Despite this experience, Phoenix has largely carried on with deregulation. Major modifications
were the re-regulation of airport taxi service by the city Phoenix, and the recent (2011) passage
of basic regulations (such as requirement for criminal record checks for drivers) by the State of
Arizona. Fares remain unregulated outside the airport.

Indianapolis. Indianapolis was converted to open-entry in the 1990’s as part of a broad review
of all civic regulations. The reform was undertaken with an awareness of the 1970’s
deregulation experience. Indianapolis retained other aspects of regulation such as driver and
vehicle quality and fares, while moving to open-entry.

Minneapolis. Minneapolis moved to open entry gradually, in phases, finally removing all limits
to taxi numbers in 2011. Taxi numbers increased from 348 prior to open-entry, to 820 in the first
year of no restrictions. In the following year, numbers dropped back to 740, still more than
double pre-reform levels. Like Indianapolis, the reform was structured to keep other dimensions
of regulation intact, in light of the 1970’s experience.

Washington DC. Prior to the deregulation in the 1970’s, and for decades earlier, Washington DC
was the largest city to have open-entry. The DC Taxicab Commission continues to regulate
meter rates and other regulatory dimensions. Taxi availability for street-hail in Washington is
quite high in the downtown, similar to New York. A passenger seeking a taxi can often simply
walk out to the street and hail. Service to some neighbourhoods remains problematic.
Washington recently froze the issue of taxi licenses to independent taxis, but existing companies
can still add vehicles to their fleet. Companies are numerous given the open-entry history to
date.
4.9 Open-Entry – Taxis Per Capita – and Potential for Unrealized Social Surplus
Figure 1 compares taxis per capita for the selected cities. Open-entry and deregulated cities are
indicated in orange. These include New York, whose per capita number is the sum of its limited yellow
cabs and its open-entry dispatch vehicles for hire.
12
Teal, Berglund et al. Urban Transportation Deregulation in Arizona. Institute of Transportation Studies,
University of California, 1983.
Hara Associates
Taxicab Regulation in North America 19
There is quite a range in per capita taxis between cities. Determining factors are not only the regulatory
regime, but also geography. Central plains cities, including open entry cities like Phoenix or Indianapolis,
are spread out and more oriented on personal vehicle ownership. The most striking feature of the graph
is how much Washington and New York stand out. New York’s high numbers may be partly explained by
the high density in the urban core and resulting high parking rates and low vehicle ownership. However,
Washington DC lacks the same density – it is heavily urbanized but largely low-rise. As the longest
standing open-entry city, its taxis per capita may indicate a potential maximum from long-term taxi
demand.
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20 Taxicab Regulation in North America
Figure 2 compares meter-rates for the same set of cities. Again, orange indicates open entry. The
Phoenix rate is for airport departures only – other rates are not regulated. New York is not counted in
this case since the regulated rate is for the limited yellow taxis, vehicles. The open-entry cities are lower
on average than the closed-entry cities, but the spread is inconclusive. Washington DC is among the
lowest, but so is Chicago – a closed-entry city with moderate per-capita supply.
In summary, the U.S. experience indicates that total deregulation has its dangers, but that open-entry
within a regulated system can work. In addition to the reform experiments of Indianapolis and
Minneapolis, we have the long-standing open-entry example of Washington DC, and of New York’s
dispatch and vehicle for hire markets.
The open-entry per capita data also indicates the possibility of much larger taxi markets than may be
occurring under many cities’ taxi license caps. This is reinforced by Boston, a closed entry city that
significantly increased its medallions; found that business volume expanded to restore medallion values
after a few years. Boston’s per capita taxis is 50% higher than its closest peers, Toronto and San
Francisco. If there is a large long-run unfulfilled demand for taxis in many cities, then there is also the
potential to realize significant net social surplus from meeting that demand.
5 Vehicle Requirements & New Technology
5.1 Driver Safety & Trend to Cameras
Taxi safety equipment in common use includes partitions separating the driver from the passenger, and
cameras. Global Positing Systems (GPS) linked to taxi dispatch are also safety devices, usually including
the capability for a driver to silently signal if there is trouble.
Partitions
The choice of partitions is often controversial. While they offer drivers some protection, many drivers
prefer to have closer contact with their passengers, both for quality of life, and for better tips. There are
also cultural factors that vary regionally. In the mid-west, for example, many passengers prefer to ride in
the front seat next to the driver. Motivations are egalitarian, comfort, view, and accommodating larger
parties of passengers. The city of Winnipeg in Canada, (not part of the sample), even has a specially
designed partition that protects the driver’s right, opening the front passenger seat for use.
Only three of the sample cities require partitions (Table 4). These are the large urban centres of Boston,
Chicago, and New York. The higher than average risks for taxi drivers in these cities trumps other
considerations. They remain optional in places like San Francisco (companies cannot forbid).
Cameras
A growing trend is to require cameras inside taxis. This is driven by the increasing capability and
reliability taxi cameras, and by increasing public acceptance of cameras in public spaces. A high-end taxi
camera system takes very good resolution infrared pictures of both front and back seats, and can be set
to record on a wide variety of triggers including door opening, meter on, engine on, rapid deceleration,
and driver request. Recording can be encrypted and the record stored in an independent theft and fire
resistance device within the taxi body. Currently, bulk purchase and installation of a top line model runs
from $700 to $900 USD. Privacy choices range from encrypted for police access only, with auto-wipe
after three days, to ownership of the data by the vehicle owner or taxi company.
Hara Associates
Taxicab Regulation in North America 21
Jurisdiction
Table 4: Vehicle Equipment
Driver Safety Features
Technology
Required
Accept
GPS and Dispatch
Partition Camera
Other
Credit
Cards?
Boston
Yes
No
Chicago
Yes
Yes
Indianapolis
No
No
Las Vegas
Los Angeles
Minneapolis
New York
Panic
button
Two-way
dispatch
radio
Must have camera, silent alarm or
GPS
Partition or camera
Must have partition, camera or
GPS
Yes
Yes
Distress
lights
Data Collection
Required
Passenger Info
System including
GPS
Meter/GPS data
sent to Police
Commission in real
time
Required
Radio dispatch and
GPS
Affiliations report
as necessary
Required
Not required
Not required
Not required
Optional
Extensive trip and
financial data
Required
Optional
Extensive
performance data
required
Not required
Required
If installed, must
be connected to
dispatch system
Technology
Passenger
Enhancement
System (T-PEP)
Meter/GPS data
sent to Taxi
Commission in real
time
Trip sheet data
Phoenix
Optional
Not required
Optional
Not required
San Francisco
Optional
Required
Optional
Not required
Seattle
No
Yes
Silent
Alarm
Required
GPS
Monthly Reports
on dispatch
response;
Meter data
downloaded
Toronto
No
Yes
Emergency
distress
lights
Not required
GPS is voluntary
No
Required to have partition,
camera, distress lights or dispatch
radio
Not required
GPS is voluntary
No
Washington DC
At present, cameras are required in four of the sample jurisdictions (Chicago, New York, Seattle,
Toronto), a selection on a menu of required items in three more (Washington, Minneapolis and Las
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22 Taxicab Regulation in North America
Vegas), and optional in most of the others. Boston and Indianapolis are the only cities that do not
require the inclusion cameras in some form.
Lower Safety Requirements in Open Entry Cities?
Consistent with its deregulation history, Phoenix has no fixed requirements for common safety
equipment items. This is also true of Indianapolis, a recent open-entry city, and to a lesser extent,
Minneapolis and Washington DC.
Care should be taken in interpreting the lower compulsory equipment requirements in such cities. The
tendency to have fewer equipment requirements is not necessarily a philosophical consequence of
market-oriented policies. In closed-entry cities, medallion holders are earning significant economic
rents, and can afford to bear the weight of increased capital requirements. In open-entry cities, this
economic surplus is not present, and owner-drivers tend to be a greater proportion of vehicle permit
holders. Without the buffer of economic rents, there is greater resistance to imposing additional capital
requirements on owner-drivers, many of who are perceived to be low-income.
Global Positioning Systems & New Technology Requirements
GPS has gone from a separate capability to an integrated feature of modern private dispatch systems.
Knowing vehicle location assists computer dispatch, reducing staff time requirement, and reducing
dependency on employees with a rare skill set (e.g. the ability to coordinate 100 to 120 taxis with a peg
board and radio). Additionally, the automation of dispatch allows integration with call-taking, which can
also be partly automated based on recognition of telephone numbers of callers.
This has resulted in a diverging market between larger fleets that have this capability as a matter of
economy and smaller firms, who either dispatch the old way or contract with larger firms to handle their
dispatch.
In this framework, regulatory requirement of GPS in taxis is more about driver safety and policy towards
smaller taxi companies (recall that the dispatch operation, fleet brand, and colours are usually
integrated in North American closed entry regimes). It is about laying the regulatory foundation for data
collection, and performance monitoring that the regulator might wish to undertake.
In Table 4, the cities of Boston, Chicago, New York and Seattle require taxis be GPS enabled. However,
the capability is common to the larger taxi companies in most cities.
5.2 New Technology Wave – Passenger Back Seat Experience & Data Collection
In the case of New York and Boston, the GPS
requirement is part of a broader revolution in
taxi equipment requirements that include
back-seat displays for customers showing
position and route, providing ads and
services, and allowing the customer to swipe
their own credit card and process credit
automatically. The presence of these units
provides passengers with a greater sense of
security about their credit cards, and the
route taken. It also provides the passenger
Hara Associates
Taxicab Regulation in North America 23
with a high-tech experience as part of the ride.
New York and Boston also took the opportunity to change the data relationship between the industry
and the regulator. In both cities, real time trip data is transmitted to the regulator. New York has gone
the furthest in making use of this data. When customers leave items behind in the taxicab, the
regulators’ customer service centre can identify the taxi within minutes, using only the time and location
of the trip’s end. A message can be transmitted to the driver display, and the return of the item can be
immediately arranged. On a systemic basis, New York has used the data to analyse the areas served, and
not served, by its yellow taxi system. This data underlies, in part, the current New York initiative to
extend a new class of 18,000 borough taxis to serve the hail market in outlying regions. The GPS tracking
reported centrally will also assist the regulator to analyse the movements of the new class of taxis and
enforce the geographic licensing conditions.
6 Data Collection & Performance Monitoring
Four regimes require extensive regular reporting of trip and performance data from taxi companies
(From Table 4: Boston, Las Vegas, Los Angeles, New York and Seattle).
However, requiring data is not the same as using it to assess system or company performance. For
example, in Boston, while there is continuous real-time data being sent to the regulator (the Police
Department) from the GPS-assisted passenger information system, there are no performance data
requirements. The Department does not typically analyse the data, although it can be retrieved in the
event of an incident.
Chicago also requires GPS, and it has performance requirements in terms of service to less-dense
neighbourhoods, but the attestation of service to these neighbourhoods is not supported by hard data.
The GPS data is held by dispatch companies that taxicabs must be affiliated with. Similarly, in Seattle, it
is the affiliates that must be able to monitor their cars in real time.
New York is the only jurisdiction with required GPS that uses their system to monitor cab trips. With
electronic support, this is much more comprehensive. Minneapolis, for example, also requires trip sheet
data, but it is typically just a sample. Other jurisdictions that require comprehensive reporting do so by
more conventional means. Seattle uses data dumps from meters at the time they are inspected for quite
sophisticated analyses, including cab utilization rates that figure in the estimation of the need to issue
licenses. The Nevada Taxi Commission, responsible for Las Vegas, requires and publishes on the net
summary data on total trips, industry revenue, and mode share. Nevada’s focus is financial, consistent
with the needs of their public convenience and necessity regime.
6.1 Los Angeles – Comprehensive Reporting for Twenty Years
Los Angeles has the most extensive performance reporting system, consistent with monitoring
performance standards under its franchise system. Going far beyond simple dispatch-response
measures, performance scores are formalized in a Taxi Service Index, with weighted scores of telephone
response, on-time response, complaints, vehicle inspections, driver and operator violations, etc. There
are also monthly and quarterly reports from franchise holders with service data for dispatch and phone,
driver lists, complaint records, accident and affirmative action employment records, as well as annual
financial and business plan updates.
It is worth noting that Los Angeles has had this system in place for twenty years (two renewal cycles of
the 10-year franchise system. While new technology has brought data onto the agenda, older systems
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24 Taxicab Regulation in North America
have always been able to generate computer readable reports, sometimes with a little bit of
customization. Telephone switches generate call-answering information that can be exported to
personal computer spreadsheet programs (e.g. Microsoft Excel) and used to generate reports.13
Computer dispatch has been present for a long while as well.
6.2 Other Cities in Canada & USA
An earlier 2010 survey by Hara Associates found a similar lack of data collection in additional cities
outside the present sample (Table 5). Even where bylaws require taxis to provide trip sheets, this
requirement is infrequently enforced because of the burden of processing hand-written documents.
Table 5: Other Cities from 2010 Survey*
City
Approach to Data Collection & Service Quality Monitoring
Bylaw Notes
Calgary
No regular collection. Good cooperation with industry for sharing
data with administration on an ad hoc basis.
Power to require trip
counts for past 90 days,
and administrative
authority to impose
other requirements for
broker’s licence
consistent with bylaw
objectives.
Denver
Annual provision of financials and trip volumes from taxi brokers.
Trip volumes are estimates from sample taxis.
Financial submissions a
condition of licence
renewal
Edmonton
No regular collection. Good cooperation with industry for sharing
data with administration on an ad hoc basis.
Right to request
information from taxi
companies.
Houston
No regular data collection. Airport taxi volumes collected via
airports. Service quality is not part of the regulatory mandate. It is
left to competition between companies.
Mississauga
Trip counts Collected annually from sample taxis. Good cooperation
with industry for sharing data with administration on an ad hoc
basis.
Montreal
No regular data collection.
Ottawa
No regular collection. Good cooperation with industry for sharing
data with administration on an ad hoc basis.
Regina
No regular collection. Good cooperation with industry for sharing
data with administration on an ad hoc basis.
Bylaw has requirement
for taxi trip sheets that
may be collected by
regulator
Winnipeg
No regular data collection. Good cooperation with industry for
sharing data with administration on an ad hoc basis.
Taxi brokers are not
within the jurisdiction
of the regulator.
Vancouver
No regular data collection. Data may be forthcoming in application
hearings before provincial Passenger Transportation Board.
13
Ironically, it is reported that this standard feature in old office telephone switches is often absent from the
cheaper versions of new models.
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Taxicab Regulation in North America 25
*Source: Taxi Supply Demand Ratio for the City of Calgary; Phase I: Assessment of current service.
7 Driver Training & Testing
Two jurisdictions, Arizona (Phoenix) and Indianapolis, do not specifically require prospective drivers to
take a training course, but only Arizona does not test drivers for knowledge of, for example, local bylaws
and geography. This is consistent with Arizona’s long-standing deregulation approach. An Arizona
driver’s license and a criminal background check are all that are required.
Most jurisdictions approve appropriate courses. For example, Washington has approved a 60-hour
course with the University of D.C. A few jurisdictions, such as San Francisco, Indianapolis and
Minneapolis, actually administer the tests themselves.
Toronto has the most comprehensive training and testing. New drivers are required to take a 17 day
primary course that covers geography, safety, professionalism, and business practices. The dedicated
Training Center is the largest in North America and trains approximately 5,000 drivers annually.
Applicants must receive at least 70% on each course, with a cumulative average of 80%. Three-day
refresher courses are also required every four years.
Since 1998, Toronto vehicle licenses have only been issued to owner-drivers, under the Ambassador
program. Ambassador owners must undergo an additional 20-day training course that covers topics
related to owning a taxicab, such as financial planning, city bylaws, and marketing in addition to the
topics covered in the Primary Course. The Ambassador course also covers an in-car, rough weatherdriving component. The passing grade is 70%, with a required cumulative average of 80%.
Although not in use in Toronto, there exists a general Canadian standard for language competency
termed the Centre for Canadian Language Benchmarks (CCLB). This national standard was developed to
serve occupational testing and placing in private sector and government employment programs for new
Canadians. The city of Edmonton, Canada, applies this standard to taxi drivers. There, drivers must
provide evidence of English language proficiency at level 5.0 or above under the CCLB. After one year of
driving, the level must be 7.0 or higher. Level 5.0 requires only basic functionality, such as understanding
“Take me to 52 Elm Street.” Level 7.0 requires a greater understanding of context, such as “. . . but first I
want to stop at the dry cleaners.” The graduated approach takes account of the taxi industry’s role as a
source of employment for newcomers. Testing typically costs $150 at educational institutions licensed
by the CCLB. The testing services are generally available as it serves many industries.
8 Accessible Taxis
The Americans with Disabilities Act (ADA) requires public transportation agencies to provide wheelchair
accessible transportation. However, private taxi companies are largely exempt from the ADA, except
under special circumstances.14 Accordingly, accessible taxi service varies widely from one city to
another. This is also true in Canada, although provinces like Ontario are in the process of implementing
standards that include taxi service.
Table 6 summarizes accessible taxi service by jurisdiction. The type of licensing regime is shown because
it has an impact on the approach to accessible service. Wheelchair accessible taxi vehicles cost
significantly more than other taxi vehicles. The most common choice is a family passenger van, custom
14
For example, the purchase of new vans to use as taxis may trigger an ADA requirement, but used vans brought
into service do not.
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26 Taxicab Regulation in North America
modified to install a wheelchair lift. The van is usually purchased new to spread the cost of modification
over a number of years. Other choices are purpose-built taxis, such as the London Taxi, the Ford Transit
Connect, or the MV1. Closed entry jurisdictions use their high medallion values to incentivize accessible
taxi service. New medallions may be offered whose value exceeds the extra cost and inconvenience of
operating an accessible vehicle.
The percentage of the fleet varies 0.2% in Washington to a high of 10% in Minneapolis. Minneapolis is
surprising, since it is an open-entry jurisdiction and lacks the medallion value. Instead, Minneapolis has
imposed a requirement on taxi companies that 10% of their fleets must be wheelchair accessible.
Other open entry regimes, Phoenix and Indianapolis, leave provision of this service to private markets
and the numbers of accessible taxis are not known.
9 Integration with Other Modes
In one sense, taxis are very well integrated with other modes of transport in all cities. Taxis traditionally
serve transportation modes like airports and railway stations. However, taxis are often thought to have
significantly more potential, since they offer a low volume, low cost alternative to buses and other
ground transport. For example, one can imagine that low-volume, suburban bus routes might be
replaced by taxis meeting trains and trunk routes at their end-points, providing seamless no-waiting
service to public transit passengers.
However, very little of such innovation is reported. In the words of one regulator “I saw a
comprehensive State transportation plan claiming to address all transportation modes, but no one had
spoken to me about taxis!” One area where there is some alternative experimentation is licensing
shared ride or jitney services. Chicago licenses jitney vehicles to operate on fixed routes, responding to
hail fares. This helps address low taxi service in areas outside the downtown core. New York has a
special class of license for commuter vans that provide private pre-arranged multi-origin-destination
service. Another area is potential innovation by regulators who also have governance of public transit.
The San Francisco Municipal Transit authority now permits taxis to use bus-cut-aways at the curb for
passenger pick-up, thus reducing traffic congestion from illegal stops for hail fares.
10 Adjustment of Meter Rates & Fares
As discussed earlier, the nature of closed entry regimes and high medallion values tends to lead to the
infrequent adjustment of meter rates. Thus a formal system of annual review of taxi fares is more the
exception than the rule.. This may be changing as volatile fuel prices lead to demands for meter rate
increases, only to be followed by a period of falling fuel prices. San Francisco and Chicago are both
engaged in major reviews at the time of writing which may lead to a more systematic approach to
adjustment.
There are two cities within the sample that employ a Taxi Cost Index. A taxi cost index works similarly to
a consumer price index, except that it measures the per cent change in the cost of operating a taxi,
rather than the per cent change in the cost of living to the average consumer. Each cost component
receives a weight proportionate to its share in total costs of operation. For example, if fuel costs were
half of total costs15, then a 10% increase in fuel would result in a 5% increase in the cost index. Changes
in the cost of other elements would have a similar proportionate impact.
Proponents of cost indexes cite these advantages: It responds to actual costs of operation, it can be
customized to the cost profile in each city; it can easily be updated using published government data on
fuel prices, cost of private vehicle maintenance, etc.; and it can be applied annually without requiring
15
The proportion of "half" is chosen to keep the mathematics simple – not a real number.
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Taxicab Regulation in North America 27
extensive consultations or discussion. Both Los Angeles and Toronto use cost indexes to manage
adjustment of their taxi meter rates.
Table 6: Accessible Taxi Service
Accessible T axis
Jurisdiction
Total
Taxis
Boston
Chicago
Accessible
Taxis
% of
Fleet
1,825
100
5.5%
6,900
147
2.1%
800
Not known
Not
known
2,393
62
2.6%
Los Angeles
2,353
222
9.4%
Minneapolis
687
69
10.0%
232
1.8%
New York
13,237 Street Hail
taxis.
35,340 Dispatch
and Limousine
Vehicles for Hire
Not known
Not
known
Indianapolis
(and Marion
County)
Las Vegas
(& Clark
County)
Phoenix
2,000
Not known
Not
known
San
Francisco
1,585
92
5.8%
Seattle
850
45
5.3%
Toronto
1400 Ambassador
(owner-driver)
plates
85
1.7%
Notes on Approach
Taxis must give priority to accessible calls
Quota based on number of medallions held.
Sliding scale for companies or individuals
holding more than 15 taxi permits.
Maximum rate is one accessible taxi per 25
permits. All accessible taxis in Chicago must
register with a common dispatch service, in
addition to their regular dispatch.
No requirements
As with other services, application must be
made under public convenience and
necessity regime
Franchise terms require a total of 222 across
franchises.
Companies are required to have at least 10%
wheelchair accessible taxis.
232 Medallions are required to be
wheelchair accessible. These numbers are
expected to increase significantly as part of
the issue of new Borough medallions for
street-hail.
City of Phoenix sells subsidized coupons for
accessible taxis to seniors and persons with
disabilities.
There are 92 Medallions requiring accessible
vehicles. There is also an incentive program
for these vehicles to serve wheelchair
customers.
Accessible taxi permits are not subject to any
type of cap. When issued, these licenses
must be held for 5 years before it is possible
to transfer them.
Accessible taxis serve exclusive passengers
with disabilities.
3,552 Standard
Washington
DC
7,000
20
0.3%
The 20 vehicles were introduced in 2011.
Previously, accessible taxis from
neighbouring jurisdictions were permitted to
operate within Washington DC.
Hara Associates
Method of
Managing
Entry /
Licensing
Regime
Fixed cap
Fixed cap
Open entry
Public
convenience
and necessity
Franchise
system
Open entry
Fixed cap
Open entry
Open entry
Fixed cap
Fixed cap
Fixed cap
No longer
issued
Open entry
28 Taxicab Regulation in North America
11 Potential Lessons from the North American Experience
The North American experience offers a variety of possible lessons for the design of a new taxicab
regulatory regime. Based on this review, the following hypotheses are worth considering:

New technology offers significant benefits.
o
Affordable and effective taxi cameras now offer increased safety to drivers and more
effective enforcement.
o
The joint initiatives of New York, Boston and other large U.S. cities have created
affordable back-seat systems that give passengers a much better experience and control
over their credit cards. GPS displays show the passengers their route, or alternatively
display local tourist information. The economies of scale established by the purchases of
these cities now make these units generally available at reasonable cost.
o
The now common computer dispatch and GPS enabled vehicles support cost-effective
full reporting of trip data to regulators, and open new possibilities for licensing taxis by
time and geographic area.

Data collection and performance monitoring is a matter of choice – not new technology.
While New York and Boston have taken the opportunity of new technology requirements to
start collecting trip and performance data, such data can also be collected with equipment
commonly in use in most cities. Los Angeles’ comprehensive performance monitoring system,
under its franchise system, has been in effect for more than twenty years.

Accessible taxi service is sustainable, even without incentives. Minneapolis has one of the
highest percentages of wheelchair accessible vehicles in its civic fleet. It achieved this by
requiring taxi companies to meet a 10% requirement. While many cities are able to impose
these requests by offering valuable taxi medallions, Minneapolis is an open-entry city without
appreciable medallion value.

Regulating driver lease rates has drawbacks. US.. cities commonly try to improve the income
of taxi drivers by setting ceilings on the lease rates they may be charged for vehicles and vehicle
permits. As with any other price control, there will be efforts to get around them. The
experience reported by San Francisco drivers is an example of some the less desirable
outcomes. Tips and bribes may become an unpleasant way of life, or, alternative contractual
arrangements may bypass the controls.

Promoting owner-drivers may affect weekend shortages. The experience of owner-driver
regimes like Toronto and San Francisco show that driver incomes can be successfully raised for
those who receive the vehicle permits. However, in cities where double-shifting of taxis is not
the norm, there is the risk that higher incomes will cause taxi drivers to work more normal hours
– leading to shortages on weekend evenings.

The potential taxi market may be much greater than revealed under closed-entry. Taxis per
capita in Washington DC and New York are three to five times higher than most closed-entry
cities. Washington DC has been open-entry for long enough that passengers can adapt their
lifestyles and vehicle ownership patterns to the higher availability. New York has also been
effectively open-entry for a long time through its unlimited licensing of dispatch vehicles-forhire. These two cities demonstrate that many other cities may have a potential long-run
demand for taxis that is much greater than has evolved under entry restrictions. This potential is
independent of the choice of closed entry or open entry. The closed entry cities of Boston and
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Taxicab Regulation in North America 29
Toronto also experimented with large increases in their taxi fleets. Medallion values fell in the
short-run, but ultimately recovered as new taxi users met the new supply. These observations
are complemented by recent international experiences, such as the close to tripling of the Irish
taxi market following a court-driven move to open-entry.

Complete deregulation has proven dangers. The negative experience of U.S. cities who
deregulated licensing, fares, and license limits in the 1970’s shows that the underlying rationales
for some forms of taxi regulation are sound.

Open-entry is not deregulation. Open entry is different in concept in that it removes any cap
on total taxi permits, while maintaining meter rate regulation and other forms of regulation.
While open-entry may have drawbacks, its long-term viability is demonstrated by the long
existence of the Washington DC regime and by the successful moves to open-entry by
Minneapolis and Indianapolis. New York too is arguably a long-standing open-entry regime,
despite the well-known medallion system of its yellow hail-market taxis.
Each choice of taxi regime has its advantages and disadvantages. It is hoped that the observation of
United States and Canadian experience will help clarify the choices to be made.
12 Individual City Profiles
Individual city profiles are provided below, in alphabetical order by principal city served.
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30 Taxicab Regulation in North America
Boston
Taxi fleet:
1,825 Taxicabs, Livery/Limousines
Jurisdiction Served:
Population (est2010)*:
Taxis per 10,000 Population
Plates Transferable?
Market value of
plates/medallions:
Drivers:
Meter Rate - 5 kilometers
(distance only):
*2010 US Census.
The City of Boston
617,594
29.5
Yes, with approval of the Police Commissioner
Average values are over $400,000, with a top sale value of $525,000
Approximately 6000
$10.90
In Boston, the responsibility for taxi regulation rests with the Police Department. According to the City of
Boston website, the Hackney Carriage Unit is the oldest specialized unit in the Police Department,
founded the same year as the Department in 1854. This unit is headed by a Superior Officer, the
Inspector of Carriages, and who regulates the industry as directed by the Police Commissioner.
Taxis can pick up passengers at stands, by street hail, or through radio dispatch services. Limousines,
which are restricted to dispatch, are regulated by the State of Massachusetts.
While Boston has maintained a quota system for medallions for more than 80 years, it is of interest
because it significantly expanded the quota without apparent long run impact on the market value of
taxicab licenses. This may be an example, not only of how low supply may hide under-estimated
potential taxi demand leading to a failure in service, but how conventional quota systems can improve
results. Along with New York, Boston is also one of the leading cities in requiring new technology-based
passenger information systems in taxicabs, although the data is not currently used to track company
performance data, such as dispatch response times and service in low density neighbourhoods.
1.
Regulatory History
When the Massachusetts Legislature conferred new powers on the Boston Police Department to
regulate the taxi industry in 1930, it fixed the number of hackney licenses at 1,525. That number
remained fixed until 1992. In the middle of the 1990’s, 300 new medallions were released by the Boston
Police Commissioner. They were auctioned in successive annual lots of 100, with a third of the new
licenses going to wheelchair accessible vehicles. There was no material effect on the value of
medallions. The change in values was partly influenced by changing economic circumstances.
2.
The Taxi Fleet and Industry Structure
In order to operate a taxicab in Boston, a Medallion is required. All Medallion holders are required to be
affiliated with a taxi radio association.
There are currently 1,825 Medallions available, which can be transferred, subject to the approval of the
Police Commissioner, usually on advice from the Inspector of Carriages. The cost of purchasing a
Medallion in 2011 averaged more than $400,000, with a top sale value of $525,000. 300 medallions
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Taxicab Regulation in North America 31
were auctioned between January of 1999 and June of 2003. The auction values did not significantly
depress the value of transfer sales during this period, which averaged between $166,000 and $181,000.
In the years following, prices increased every year except 2009, reaching an average of $421,000 in
2011, with a top value of $525,000.
Accessible vehicle Medallions are issued as required by Public Interest and Necessity. As noted, 100 new
Medallions have been wheelchair accessible vehicles (WAVs). Vehicles may be leased, subject to
regulated rates. These are:
12 hour shift - $77
24 hour shift- $139
Weekly Rental -$700
Two driver weekly rental - $800
Max medallion only lease - $500 week
Clean Taxi Premium – $18/12 hour, $33/24hour, $170/week
New Car (4 model years or less) premium: $18/12hour, $33/24hour, $170/weekly, $8840/year
a.
Vehicle Standards
All vehicles, when brought into service must meet inspection standards and regulated specifications. A
number of vehicle models have been preapproved as meeting the required specifications which deal
with size and seating capacity. These vehicles include the Ford Crown Victoria, Lincoln Towncar, Honda
Odyssey, and the Dodge Caravan. No taxicab is allowed to operate for more than 6 model years, with
the exception of vehicles operated by the medallion holder which may operate for 7 years.
All Taxicabs are required to install safety partitions. A GPS must also be installed which includes a panic
button capable of notifying the dispatcher of an emergency situation.
b.
Accessible and Green Taxis
Accessible vehicle Medallions are also issued as required by Public Interest and Necessity. As noted, 100
new wheelchair accessible medallions were issued in the mid-1990’s. There is a special course required
for WAV operators, involving both equipment handling and dealing with the disabled.
Boston has recently made reforms to promote a more fuel efficient taxi fleet. As of August 2008, all taxis
coming into service must pass fuel efficient standards. The required vehicle specifications are slightly
different for hybrids. Some preapproved hybrid models are the Ford Escape, Toyota Camry, and the Ford
Fusion.
c.
New Technology
Boston taxicabs are required to accept credit and debit cards. The driver pays the credit card fee which
is regulated to be a maximum of 6%.
Boston taxis are among the first to be required to have a passenger information system with a monitor
able to display the vehicle location, fare information and other messages to passengers. This system
combines older technology features, like credit and debit processing with new features.
The GPS technology is Boston must record trip and fare information as well as vehicle locations, such as
date and time of taxicab dispatch, location and time of passenger pick-up and drop-off. This information
is available in real-time to dispatch companies, and to the Inspector of Carriages.
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32 Taxicab Regulation in North America
3.
Drivers
There are approximately 5000 licensed drivers in Boston. To obtain a license to drive a taxicab, an
applicant must be 21 years old, hold a valid Massachusetts driving license, and have held a drivers
license for at least two years. A driver cannot be a habitual traffic offender, not have any felony or drug
convictions within 5 years, and cannot be a registered sex offender.
Drivers must also attend mandatory training and pass required tests. The Director of Carriages can
prescribe a required test for drivers, with testable material. Drivers must also demonstrate English
language proficiency.
4.
Meter Rates
Boston has a prescribed meter rate fare system. The meter system applies to most local Boston trips.
Trips which go into suburbs, neighbouring cities and states are subject to an extensive list of flat rates.
Current Meter rates:
Entry and first 1/7th mile: $2.60
Additional 1/7th miles: $.40
Tolls are additional.
Idling Time: $28.00/hour
Passenger pays all tolls from Boston proper, to Logan Airport and North Shore Communities
Passenger pays no tolls from Boston proper, to East Boston, not including Logan Airport.
People who are 65 and older, or who are disabled can buy a $10 taxi voucher for $5. A total of two $10
vouchers can be purchased 2 per month.
A number of communities are subject to flat rate fares. These are rates typically to outlining
neighborhoods, and cities in neighboring states. For example, the flat rate between Boston and
Montreal is $1,008. To New York City, the rate is $700.80. The City has a manual with all of the
applicable flat rates listed.
5.
Airport Services
Logan International Airport is served by taxicabs in a unique manner. Taxicabs take a number and wait in
a holding pool which is a large parking lot. Taxis wait until their number is called, and they are dispatch
to the location where the passenger is waiting.
6.
Compliance and Performance Reporting
Vehicle inspections are required twice a year. There are also spot checks by the enforcement team.
Driver conduct is monitored primarily through complaint follow-up.
As noted, in Boston the required GPS technology in cabs, recording trip and fare information as well as
vehicle locations, is available in real-time to the Inspector of Carriages. While there is access to
considerable data on time and location af pick-up and drop off, the data are not used for monitoring, for
example, dispatch response times or service to less dense neighbourhoods.
7.
Service Integration and Other Vehicles For Hire
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Taxicab Regulation in North America 33
Livery cars operate in Boston under an open access regime under state law.
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34 Taxicab Regulation in North America
Chicago
Taxi fleet:
6900 Medallions
Jurisdiction Served:
Population (2010)*:
Taxis per 10,000 Population
Plates Transferable?
Market value of
plates/medallions:
Drivers:
Meter Rate - 5 kilometers
(distance only):
*2010 US Census.
The City of Chicago
2,695,598
13.9
Yes
$275,000-$300,000
10,500
$7.64
The Department of Business Affairs and Consumer Protection (BACP) of the City of Chicago has the
responsibility for taxi regulation. The taxi and livery industry is only one area which BACP oversees, as
the Department also licenses businesses, and ensures business regulatory compliance as well as
consumer protection and awareness. BACP states that its goal is to ensure a fair and vibrant
marketplace for businesses and consumers. BACP has an internal enforcement and investigations
section which investigates consumer complaints and ensures compliance with City laws and regulations.
Chicago is a classic North American regime that maintains a limit on the total number of taxis serving the
street-hail and dispatch markets. Its main reform initiatives have been to expand permitted taxi
numbers in combination with promoting owner-drivers, and quotas to serve outlying and low-income
areas.
1. Regulatory History
Chicago taxis can work either by radio dispatch, or from cabstands and street hail. Like many larger
cities where the market is dominated by cabstand and street hail demand, Chicago experienced an
“oversupply” of cabs, and introduced restrictions on the number of taxi licenses in the 1930’s.
The number of licenses remained fairly constant, to the advantage of the two dominant companies.
While the number of licenses the City was authorized to sell was increased to 5000 in 1960, it was years
before the market opened up. Between 1994 and 2000, 1,250 Medallions were reassigned to new
owners, independent drivers and small companies, through a lottery based system. An additional 650
were issued since 1994 through a series of auctions. The combined result was a 36% increase in
medallions between 1994 and 2011. The City of Chicago has currently contracted a major study that
includes further review of medallion numbers.
2. The Taxi Fleet and Industry Structure
Chicago taxis must be licensed and have a Medallion fixed on the front of the vehicle. The number of
these taxis is fixed, currently at 6900. There are three ways one could obtain a Medallion: it can be
bought at auction from the city, it can be won as an award, or it can be purchased from another permit
holder.
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Taxicab Regulation in North America 35
A corporation, partnership, or an individual may hold a Medallion. Any prospective holder will have 60
days to complete a mandatory course, and pass an exam, which covers the regulatory requirements
within the taxi industry. Any permit holder must also be deemed to be financially responsible, law
abiding, and cannot have had taxi licenses revoked within the past 5 years. Holding a taxi license and a
livery license at the same time is prohibited. A single holder is capped at holding a maximum of 25% of
available medallions.
For several years there was a neighborhood car program (ending in 2000), by which additional permits
granted to economically disadvantaged drivers under conditions that they operate in certain
neighbourhoods. After an initial period, these licenses were converted into regular taxi permits.
Medallion cars may be leased. The weekly rate is $473.00, excluding repairs and maintenance $372.50,
Medallion lease only $275.00. New model vehicles, which are vehicles purchased new and in their first
year of operation, are subject to a slightly higher maximum lease rate. An additional $2.00 over a 12
hour lease and $3.00 over a 24 hour lease can be charged. An additional $15.00 per week can be
charged for both maintenance and non-maintenance lease.
A lessee is entitled to 35% of advertising revenue generated from ads on the car. The amount received is
determined by the proportion of the vehicles operations was attributable to the leasee each month,
multiplied by the gross revenues from advertising for the month.
a. Underserved Areas
Typically for cities with a limited number of licenses, access to taxis in Chicago’s outer neighbourhoods
has been a concern for decades. The fares are fewer, deadheading is common (raising costs), and there
is also a real concern about the history of violence in certain parts of the city. Drivers have been robbed,
sometimes resulting in injuries and death.
Chicago has one of the most comprehensive programs to try to respond to these needs, dedicating a
section of the municipal code to ‘underserved areas’, which include all parts outside of the city core,
with the airports and McCormick Place being exceptions. A number of different approaches have been
used. As noted, there was a neighborhood car program instituted to operate exclusively in underserved
areas.
Drivers have an affirmative duty to accept passengers from underserved areas. Public chauffeurs seeking
to renew their license must demonstrate that they have upheld the commitment not to refuse service
based on prohibited discriminatory grounds of race, gender, ethnicity, or geographical location.
One of the ongoing initiatives is to offer a tax credit to taxi Medallion holders of up to 50% for each
calendar month that the taxi operates in an underserved area. This tax is determined by the proportion
of fares either picked up, or dropped off in underserved areas multiplied by the monthly tax otherwise
due for that month up to a maximum of 50%.
The One-Call-a-Day program requires a basic minimal level of service in the underserved areas. Each
taxicab is under an obligation to respond to at least one call for service originating from an
underserviced area in each 24 hour period of operation. Wheelchair accessible vehicles that pick up
disabled passengers are considered to have satisfied this requirement. Affiliations must provide drivers
with enough requests to meet their ‘one-call-a-day’ requirements. In addition, an Affiliation may have
their licenses for renewal denied if they fail to receive at least 300 times as many requests from
underserviced areas as they have taxis operating, a requirement that may be difficult for smaller
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36 Taxicab Regulation in North America
affiliations who do not have city wide name recognition. However, it has been found that this
requirement is difficult to monitor effectively, and it is under review.
b. Allocation and Transfer
The Commissioner of Business Affairs and Consumer Protection is responsible for overseeing a public,
sealed bid auction of newly issued and reissued medallions. The auction process is done with the aim of
generating revenues for the city while serving the public interest.
Every year two Medallions will be awarded to outstanding drivers as part of a contest. The award is
open to drivers in good standing, who have been driving for at least 3 years and who do not already hold
an interest in a taxi permit. One is awarded to a driver who has demonstrated the greatest dedication to
excellence through improving the quality of drivers through their participation in master chauffeur
program.16 The second award goes to the driver who through their actions has demonstrated the
greatest dedication in providing the community excellent cab service.
All medallions can be transferred. All transfers must be approved, as each new holder must meet the
requirements for holding a medallion. Transfer prices are posted on the Department’s website.
c. Vehicle Standards
A number of different vehicle models have been approved for taxi service. All authorized vehicles must
meet specified size requirements which limit vehicle options to larger cars and vans. The Ford Crown
Victoria is a popular choice, but vehicle models ranging from Audi’s to Hyundai’s are available.
No vehicle can be placed into service that has more than 150,000 miles of use. Vehicles cannot remain
licensed if they are more than 4 model years old. An additional year of use is granted for long wheel
base Ford Crown Victoria’s, wheelchair accessible vans, alternative fuel vehicles or if the license holder is
the sole driver and owns no other medallions. Written requests and inspections records can also be
submitted in order to request an additional year of service.
Driver partitions or cameras are required in all taxis. The cameras must be tamper proof, must have
protections against voltage irregularities, and be capable of recording in all light conditions with a
resolution at least 640x368. The camera must be capable of being triggered by the door opening. In the
event of an emergency trigger the camera must be able to record and store an additional 2.5 minutes
worth of images.
d. Accessible Service and Green Cabs
Accessible vehicle operations are required of firms which control larger holdings of medallions.
Medallion license holders who have at least a 25% interest in 15 to 49 licenses, shall license at least one
vehicle which is wheelchair accessible. Holders of 50-74 medallions are required to have at least 2
accessible vehicles. For every 25 licenses beyond 74 an additional wheelchair license will be required.
Medallion holders who operate wheel chair accessible vehicles must be able to show that they have two
licensed drivers per vehicle available who have taken the accessible driver training course.
16
A Master Chauffeur is a driver who, over a 6-month period, operates a wheelchair taxicab at least 100 days and
transports over 500 fares for disabled persons.
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Taxicab Regulation in North America 37
Chicago has attempted to improve accessible services by pooling together accessible vehicles. The Taxi
Access Program (TAP) has been initiated which requires all affiliations which operate accessible taxis to
coordinate or centralize their dispatch systems when dealing with requests for accessible vehicles.
In 2011, a “Green Taxi” program was implemented, providing funding for the purchase of hybrid and
compressed natural gas vehicles.
e. New Technology
All taxicabs must be fitted with radios allowing them to remain in contact with a dispatch service. Cabs
must also be able to accept credit and debit cards. GPS equipment is required in all taxicabs.
3. Drivers
Liveries and taxis in Chicago are operated by Public Chauffeurs. To obtain a Public Chauffeurs license an
applicant must be at least 21 years old, give fingerprints, pass a drug test, a medical, and hold an Illinois
driver license. The licensing process includes a Public Chauffeur course and exam. English proficiency
may also be screened by those who administer the public chauffeur training course. The course
currently offered also includes a bus tour of the City.
Public Chauffeurs are expected to continue their driving education. Every driver must, within every 24
month period, complete a continuing public chauffeur retraining program. This is a requirement for
renewing licenses.
All prospective wheel chair accessible vehicle drivers must take a wheel chair accessible driver training
course.
4. Meter Rates
The regulated meter rate in Chicago taxis is:
Entry and first 1/9th mile - $2.25
Every additional 1/9th mile - $.20
Every 36 seconds of time - $.20
First additional passenger - $1.00
Every additional passenger - $.50
Outside of the city limits, meter rate is 150% (Some suburbs, on trips from the airports, are exempt from
this)
Airport Surcharge - $2.00
Gas Surcharge - $.50 (when gas price exceeds $2.70/gallon)
- $1.00 (when gas price exceeds $3.20/gallon)
5. Airport Service
Chicago has two major airports, O’Hare International and Midway International. Both airports are
served by taxis and have taxi stands located at all terminals. Livery cars can be ordered to the airport,
but must be prearranged.
At each major airport there are stands for group rides to and from the United Center, McCormick Place
and the other airport. The fares for these rides are flat rates, charged per passenger.
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6. Compliance and Performance Monitoring
All cabs must be inspected twice a year.
All taxi and livery vehicles have to be affiliated with a dispatch company, which are also licensed by the
City. The affiliates play an important role in the regulatory scheme because they are required to keep
detailed service, trip and driver records. For example, affiliates must document that the drivers working
for them are all properly licensed, that calls to underserved areas are being answered promptly, and
that accessible services goals are being carried out. However, as noted, effective monitoring of these
performance goals has proved difficult, and this process is part of the more general review that is
occurring.
7. Taxis from other Jurisdictions
Taxis from outside of Chicago can come into the city to drop off their passengers. When within Chicago
they are prohibited from picking up other passengers. Vehicles must go “out of service”, turn any roof
lights off, and indicate they are not for hire.
a. Livery Vehicles
Livery vehicles are also licensed by BACP. These operate as public passenger vehicles for hire which do
not operate with meters, and can only pick up passengers on a prearranged basis. These vehicles must
be painted either black or dark blue and cannot in anyway identify themselves as ‘taxis’ or ‘cabs.’
Liveries and taxis cannot be affiliated with one and other, and must have separate dispatching
operations.
b. Jitney Service
Jitney services are unscheduled services limited to a specific zone. Jitney bus services developed
somewhat spontaneously in the 1920s in poorer neighbourhoods. They are now regulated by the BACP,
but they are subject to a less intensive licensing regime. These vehicles are able to accept passengers by
street hail and do not prearrange pickups. Passengers are able to be picked up and dropped off
anywhere along the prescribed route for a flat per passenger fee approved by the Commissioner.
The Commissioner or any licensed public chauffeur may initiate the procedures for an authorized route,
or zone. The Commissioner will hold a public hearing process to determine whether the public
convenience would be best served by the authorization of jitney service. The hearing is to be scheduled
within 60 days of the application, and the Chicago transit authority and all licensed public chauffeurs are
to be given notice of the proceedings. The transit authority is expected to comment on how the
proposed route will affect its services and revenues both in the present and future.
After a Jitney service has been authorized, public chauffeurs must obtain permission to operate along
the route. The application procedures and qualifications are determined by the Commissioner. The
Commissioner also reviews all existing jitney routes, to ensure that that the public convenience is still
served. After a public hearing, the Commissioner may revoke authorization for any jitney route or zone.
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Taxicab Regulation in North America 39
Indianapolis
Jurisdiction Served:
Population (2010 census):
Taxi fleet:
Plates Transferable?
Market value of
plates/medallions:
Drivers:
Meter Rate - 5 kilometers
(distance only):
The City of Indianapolis and Marion County (coextensive)
903,393
About 800 licensed taxicabs; 8.9 per 10,000 population
No (free entry)
Not applicable
About 900
$9.21
The Department of Code Enforcement oversees the licensing, permitting and inspection in Indianapolis
and Marion County of public vehicles for hire along with many other regulated areas. The Department
has a full time professional staff.
The Board of Code Enforcement is the governing body of the Department. It is Chaired by the Director of
the Department as well as two members appointed by the Mayor and two by City Council. Appointed
board members serve one year terms.
Limousines, meanwhile, are licensed by the state.
1.
Regulatory History
Indianapolis used to restrict the number of available licenses based on public interest and necessity. By
the early 1990s, there was a growing concern about poor taxi service. A Regulatory Study Commission
was created in 1992 to assess whether current regulations in many areas of municipal jurisdiction were
required. The taxicab industry was identified early on as overly regulated, and in 1994 open access was
established and price competition encouraged.
Indianapolis was mindful of the deregulation experiences of the 1970s, such as in Seattle. As well,
concerns about price gouging, especially at airports, were taken seriously. Price ceilings were created,
and rates were required to be posted. The Airport was also given some authority to make rules affecting
vehicles operating at the airports.
The number of taxis has increased steadily, and is now around 750. While fares are capped, fares and
demand are not tracked. While Indianapolis moved towards “open entry”, rather than “deregulate”, in
fact enforcement was weak for some years, and compliance to vehicle standards, including acceptance
of credit cards, and driver requirements fell. More recently, standards and inspections have become
more systematic and service is improving.
The State of Indiana, with the explicit purpose of encouraging innovative services, authorizes any type of
public vehicle service that is not expressly prohibited. Thus, public vehicles for hire are allowed to
operate in competition with taxicabs for dispatch service.
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2.
Taxi Fleet and Industry Structure
In order to qualify for a license, an applicant must not have been convicted of a felony within the past 5
years and own a vehicle that meets standards. The licenses cannot be transferred. Companies may
lease out their vehicles, and lease rates are not regulated.
The relatively light restrictions have resulted in the number of licenses growing dramatically. There are
now about 800 licensed taxis operating in Indianapolis. Concentration of licenses was reduced: after
deregulation, the number of companies increased, nearly tripling to 70 in the first four years, but since
2002, new licenses have only been granted to firms able to put at least 20 cabs on the road. This led to
some consolidation, and there are now 31 active companies. Older companies that may even be owneroperators are grandfathered; for example the requirement to have 24/7 dispatch can be met by using a
cell phone.
a.
Vehicle Standards
In general, Indianapolis taxicabs must be no more than six model years old, although they may remain in
service for up to ten model years, if they pass annual mechanical and aesthetic inspections. Taxicabs
must also be equipped with two way dispatch radios, but safety equipment is not mandatory.
b.
Wheelchair Accessible and Green Taxis
There are no specific requirements for wheelchair access beyond the requirements of the Americans
with Disabilities Act, which requires firms provide an equal level of service to disabled people. Nor are
there requirements for “green” taxis, or benefits granted relating to the operation of fuel efficient
vehicles.
c.
New Technology
Passengers can pay with credit cards, and the credit card fee cannot be passed along to passengers.
Cabs are not required to carry GPS devices.
3.
Rates
Indianapolis encourages price competition between taxicab companies, applying only price ceilings.
Taxicabs must still charge fares based on a metered rate calculated over the duration of the trip, but are
free to lower meter rates. All cabs in a company must charge the same rate.
Currently, maximum fares are as follows:
•
Drop rate: $3.00.
•
Fares shall not exceed $.40 per 1/5th mile.
•
Fares shall not exceed $.40 per minute.
•
Charges shall not exceed $.65 per extra passenger.
A $5 flat fare maximum rate has been created for trips beginning and ending within downtown
Indianapolis. If a taxi cab company chooses to implement a downtown flat fare, all taxis associated with
that company must accept the flat fare rate.
Meter rates are not reviewed on a systematic basis, nor is there a particular rate adjustment formula.
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Taxicab Regulation in North America 41
4.
Driver Licensing
Prospective taxi drivers are required to have either a valid commercial driver’s license, or a public
passenger license. Drivers must also obtain a letter of intent to hire from a taxicab company.
Background checks are conducted, examining an applicant driving record and criminal record. Drivers
who have been convicted of a violent crime, or have two of more DUIs on their record are disqualified
from holding a license. Felonies and a single DUI require a driver to wait five and ten years respectively.
5.
Compliance and Performance Standards
The Department of Code Enforcement works with Indianapolis Police to enforce taxi regulations. Cars
are inspected regularly for the meter and their condition. Complaints can be filed with the Department
of Enforcement, which operates a complaint hotline. The Department posts the results from its
disciplinary hearings on its website. The names of drivers, the offences and the punishments are all
summarized.
Companies are not required to file on their activities, such as number of trips, where their trips originate
by neighbourhood, or dispatch response times. Companies should respond to call within 15 minutes,
but the compliance process relies on complaints rather than active reporting.
6.
Airport Service
The Airport has the authority to make rules respecting vehicles for hire picking up fares at the airport.
Both taxis and limousines serve the airport. There is a $15 minimum fare for taxi rides initiating at the
airport. As firms can compete on rates, for example the drop rate, passengers unfamiliar with the rate
system are often unaware or reluctant to refuse the next cab in line.
7.
Limousines and other Public Vehicles for Hire
Other passenger vehicles for hire, like Limousines and for hire sedan services are licensed at the state
level. Like taxis, operate in a relatively light regulatory environment. Vehicles are all required to meet
general vehicle license requirements, which apply to passenger vehicles with a capacity up to fifteen
passengers. All vehicles must pass a safety inspection. However, limousine competition with taxicabs is
limited, as they cannot use meters, and tend to cater to an upscale market.
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Las Vegas
Taxi fleet:
2,409 Taxicabs, of which 1,376 are 24/7; the others are time or
geographically restricted. 62 are wheelchair accessible.
Jurisdiction Served:
Population (est2010)*:
Taxis per 10,000 Population
Plates Transferable?
Market value of
plates/medallions:
Drivers:
Meter Rate - 5 kilometers
(distance only):
*2010 US Census.
Clark County
Clark County: 1,951,269. Las Vegas: 583,756
15.4 (Clark County)
No
Not applicable
Estimated 9,500
$11.18
The taxicab industry in Clark County, which includes Las Vegas, is regulated by the Nevada Taxicab
Authority. This body has jurisdiction over taxicabs in every county with a population over 400,000.
Currently Clark County is alone in meeting that criterion. The Taxicab Authority Board is comprised of
five members who are appointed by the Governor. Each member serves for a three year term, to a
maximum of six years. No more than three members may be of the same political party, and no elected
officer is eligible to serve. The Authority is also staffed with a team of investigators, and inspectors.
Regulatory responsibility for Limousines lies with the Nevada Transportation Authority. This body is
responsible for regulating a number of different commercial vehicle types, and also regulates taxicabs in
jurisdictions not covered by the Taxicab Authority.
1. Regulatory History
Nevada is unique from many other major U.S cities as the seeds of its regulatory scheme much later,
emerging with a rapidly expanding tourism sector. The Nevada Taxicab Authority was first established in
1969. It began by licensing 275 medallions amongst approximately 600 permitted drivers.
By 1971, the Authority became entirely self-funded through the collection of fees. In 1973, responsibility
increased as they began regulating and overseeing taxicabs at the airport. By the 1990s Nevada
implemented reforms to increase supply during peak demand periods, without creating oversupply at
other times. New medallions were issued with restrictions, limiting taxi services geographically and by
time to meet identified needs.
Las Vegas has unique features that have influenced some of the taxicab regulations. One striking
difference is that Las Vegas taxicabs do not accept hails, likely due to the high demand for taxis in the
relatively small geographical area where Casinos and Hotels are concentrated. Hotels and Casino staff
assist in calling for taxis, and arranging rides for passengers without vehicles needing to queue, or
searching for a hail. Another aspect of Las Vegas taxi regulation which is unique to the jurisdiction, is the
detail given to financial reporting. Nevada has produced extensive regulations detailing a uniform
system of accounting for taxicab companies, providing the Nevada Taxicab Authority with considerable
information on the financial situation of the taxicab companies.
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2. The Taxi Fleet and Industry Structure
Las Vegas taxicabs are regulated at the county level by the State of Nevada. The Nevada Taxicab
Authority oversees taxicabs in Clark County, within which lies Las Vegas.
In Clark County there are currently 2,409 licensed taxicabs. 1,376 of these medallions are unrestricted
“24/7”, while others are restricted. About 700 are restricted by time of day, while others are restricted
by geographical regions. These restrictions prevent excessive crowding in ‘The Strip’ where fares are
most abundant, ensuring service to less dense neighborhoods.
The Taxicab Board determines the appropriate number of taxi licenses. In order to operate a taxicab
company in Las Vegas, a certificate of public convenience and necessity (CPCN) is required. In order to
qualify, an applicant must demonstrate the ability to provide a continuous taxicab service, have no
felony history, must not associate with unsuitable people, be of good moral character, and be capable,
or willing to hire someone, to manage a taxi, as well as provide evidence that there is a need in the area
to be served. If the Board determines that public convenience and necessity requires the issuance of
additional permits when no new applications have been forthcoming, it may increase the number of
permits for each firm on a proportional basis.
Certificate holders are also required to maintain at least 20% equity capital in a taxi operation, and no
license holder may hold more than 49% of total medallions. Licenses are not transferrable, and lease
rates are not regulated
a. Vehicle Standards
A vehicle must be new, or have fewer than 30,000 miles when placed into service. Upon entry, no
vehicle may remain in service for more than 67 months, or 55 months if it is used when it enters service.
There is an exception with hybrid vehicles, which may remain in service for an additional 24 months in
each case.
Taxicab companies are not required to install cameras, a GPS system, or a silent alarm system.
b. Accessible Taxis
There are 62 Handicap vehicles which operate in Clark County.
c. New technology
Credit cards are not mandatory in Las Vegas taxicabs, although they are very common. Nevada is unique
amongst North American jurisdictions, as drivers do not pay credit card fees. Instead, the customer is
charged a flat $3.00 for the use of a credit card.
3. Drivers
There are approximately 9,500 licensed drivers. They do not own cabs in their own right, but are
employees of the companies. In order to obtain a license to drive a taxicab, an applicant must have a
valid Nevada driver’s license, be deemed physically fit, and have passed a criminal record check. Driver
must enrol in, and complete a defensive driver training course, and a driver orientation and safety
course approved by the Authority. Drivers are also required to be able to communicate in English.
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4. Meter Rates
Current Meter rates are as follows:
Drop: $3.30
1/12th mile: $.20
24s of wait time: $.20
Airport Surcharge: $1.80
Credit card fee: $3.00
5. Airport Services
Taxicabs are available outside of baggage claim at McCarran International Airport. A number of
different taxi companies service the airport. Taxi trips originating at the airport are subject to a $1.80
surcharge. Airport shuttle services and limousine services, regulated by the Nevada Transportation
Authority (which confusingly has the same acronym as the Nevada Taxicab Authority), are also
frequently used by passengers to go to the airport.
6. Compliance and Performance Standards
Las Vegas very actively enforces its regulations. The Taxi Authority employs 25 peace officers who
investigate violations 24 hours a day, 365 days a year.
As noted, Nevada has extensive regulations detailing a uniform system of accounting for taxicab
companies. The Nevada Taxicab Authority publishes monthly reports on total revenue trips per month,
as well as trips and revenue per shift and per medallion.
7. Service Integration and Other Vehicles for Hire
The Nevada Transportation Authority regulates all commercial carriers other than Taxicabs in Clark
County. This includes Charter buses, airport and hotel shuttles, and taxicabs operating elsewhere in
Nevada.
Limousine services are very active in Las Vegas, and come in two types. Livery limousines are private
cars for hire that carry nine or more passengers. Traditional limousines are much the same, with the
exception that they carry fewer than nine persons.
In order to operate a limousine for hire, a certificate of public convenience and necessity is required.
Drivers must also be licensed. A driver must be at least 21, have a valid Nevada driver’s license, be
deemed physically capable by a physician, and demonstrate a sufficiently good driver’s record.
Limousines rates must be approved with the Transportation Authority. The Transportation Authority has
also set a fuel surcharge which can be added to the filed rates.
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Taxicab Regulation in North America 45
Los Angeles
Taxi fleet:
2,361 Taxis, including 222 Accessible Taxis
Jurisdiction Served:
Population:
Taxis per 10,000 Population
Plates Transferable?
The City of Los Angeles
3,792,621*
6.2
Yes, indirectly. Individual taxi licenses transferrable as shares of
cooperative holding franchise.
Franchise values range from $10,000-$50,000 per taxi, where
cooperative shares are one share per taxi owner.
8,000
Market value of
plates/medallions:
Drivers:
Meter Rate - 5 kilometers
(distance only):
*2010 US Census.
$11.16
California State law actually requires municipalities to regulate taxis. For Los Angeles, the Department
of Transportation oversees the taxicab industry. The Department of Transportation, in addition to taxis,
oversees most of the transportation network in Los Angeles. The overall mission of this body is to
enhance mobility throughout the city. The Department has a professional full time staff.
Los Angeles taxis are regulated by the Department of Transportation of the City, under the governance
of a Board of Taxicab Commissioners. This Board was created after it was decided in 1999 that taxi
issues were overburdening the Board of Transportation Commission. The specialized taxi Board advises
the Department of Transportation on issues pertaining to taxicab operations and franchises in the city.
The Board has power to investigate, and monitor compliance with regulations and agreements entered
into with the city. The Commissioners are appointed by the Mayor’s Office, and confirmed by City
Council.
Los Angeles is one of the few large North American cities in that use a franchise system, which is based
on geographic zones. Taxi companies bid on franchise to serve particular areas of the city. The areas
overlap to encourage competition. Franchise zones are chosen to ensure adequate service in all areas of
town, and are enforced with performance monitoring of dispatch response and telephone answering..
Franchise contracts are up to ten years, including allowed extensions. The franchises are conditional on
meeting performance standards. Performance is monitored regularly through reports prepared by
companies based on data drawn from computer dispatch systems and telephone systems. When there
are systematic performance issues, a company may be placed on probation, suspended, or fined.
Repeated failure to meet service standards may result in a recommendation to the governing Board to
have the franchise terminated. Franchises are ten year terms.
1. Regulatory History
From 1935 to 1973, Los Angeles had only one taxicab company, the Yellow Cab Company. This company
was a monopoly which operated every taxi vehicle in the city. The drivers were hired as employees and
were represented by the teamsters union. In the mid-1970s, the Yellow Cab Company, and its owner C.
Arnholt Smith, were the center of scandal. Mafia ties, fraud, and bribery led to successions of reforms.
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What eventually emerged was the Not-for-Profit Co-operative. The model was a popular compromise,
under which drivers become owner operators rather than employees.
The number of taxicabs and taxi companies has steadily increased since this period. These companies
are dispersed throughout the city, divided up amongst designated zones. Each company is required to
periodically submit applications for service in selected zones. It is through this process that the numbers
of taxis in operation are determined.
2. Taxi Fleet and Industry Structure
In Los Angeles there are 2,353 taxis. These vehicles are divided into five zones of operation. There are
nine taxi companies in Los Angeles. Each company operates in at least one zone, and many operate in
two or three. Operation in a zone requires a commitment of a certain level of resources to that area.
Taxicabs can pick up passengers outside of their zone, but only if dispatched. This is not encouraged, as
taxi operators are prohibited from advertising in other zones, or using different telephone area codes.
Only one franchise holder is a single owner company. The rest are cooperatives or association
membership organizations. This model allows a driver to buy a franchise which makes them an
owner/operator of their taxicab vehicle. Approximately 40% of drivers are owner operators. The cost of
purchasing a franchise varies depending on the company, and the regions which the company operates.
Individual driver shares may trade for between $10,000 and $50,000, excluding the vehicle, depending
on the franchise. A proportion of gross revenues must also be paid to the franchisor.
A driver/manager must apply for a taxicab vehicle permit. In order to qualify for a permit, an applicant
must hold a valid Driver permit with at least one year of driving experience. The applicant must be
approved by the co-operative, submit a copy of the scores from the association test, a certified copy of
driving history for two years, and driving record for the past seven years.
Leasing has become increasingly common in Los Angeles over the past two decades. There is no
regulated maximum lease rate. Actual lease rates appear to vary considerably. A survey conducted in
2010 found that the median weekly lease agreement was $532, and the maximum was $700.
a. Assignment and Transfer of Licenses
Periodically the city will receive proposals either from new companies, or existing companies that want
to expand the number of cabs within a zone or to extend service to a new zone. The City determines the
number of taxis necessary under a standard of “public convenience and necessity” to service a specific
zone, and awards companies access. The standard is fairly severe, as firms must not only show they are,
for example, financially viable, but provide evidence that existing cabs are not adequately serving the
public.
Each franchise has a fixed number of mandated vehicles during the ten year franchise term. Numbers
may be adjusted based on application and demonstrated need. There is an incentive to keep sufficient
number of taxis to meet demand promptly, given the service quality monitoring conditions of the
franchise system. Currently there are 2,303 among nine franchises of which 7.4% or 170 are required to
be wheelchair accessible.
The present set of franchises expired at the end of 2010. Normally these franchises would have gone for
bidding with alternative suppliers, however, as a cost saving measure, it was announced that the current
providers would have their franchises extended for at least five years (to 2015). This decision took
place within the larger context of a fiscal crisis in the State of California.
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b. Vehicle Requirements
The Department of Transportation must approve any model of car in order for it to be used as a taxicab.
This approval depends on the vehicle meeting certain specifications. Currently the Ford Crown Victoria is
very commonly used.
A vehicle cannot operate in excess of five model years, with the exception of four additional one year
periods provided that the vehicle passes an annual inspection. Wheelchair accessible and low emissions
vehicles may remain in service another additional with they pass their annual inspection. When coming
into service a vehicle cannot be more than four years old with the exception of station wagons and
wheelchair accessible vehicles which cannot be more than six years old when coming into service.
Some type of safety equipment is also required. Drivers may choose from either a safety shield, or a
camera. The installation of a shield or camera must be approved by the commissioner. Panic buttons
are also used. GPS is required in all vehicles. Accessible vehicles must have cameras.
c. Accessible and Green Taxis
Los Angeles requires a minimum number of accessible taxis citywide. A U.S. federal grant program
provided an additional 50 wheelchair accessible taxis. There are 222 accessible vehicles distributed
throughout the five service zones. Trips in accessible vehicles are subsidized by the Cityride program.
This is a voucher program which allows disabled people and seniors a chance to receive discounts on cab
rides. A $42 voucher can be bought each quarter for either $21 or $9 depending on the income of the
purchaser.
Los Angeles is in the process of ‘greening’ its taxi fleet. The current rules require taxis companies to
increase the proportion of their fleets which are fuel efficient every year. Specific year by year targets
have been created for each company. By 2015, 80% of taxi vehicles – with the exception of wheelchair
accessible vehicles - will be required to be fuel efficient. Twenty percent of company vehicles will not
have to convert to green vehicles. Some larger, non-fuel efficient vehicles will remain in service in order
to accommodate passenger trips which require more seating room, or trunk space.
d. New Technology
Taxicabs are required to have the equipment necessary to accept credit and debit cards. Taxis must also
be equipped with two way radios. Although GPS is not required, a number of vehicles have taken
advantage of this technology.
Service Quality Monitoring & Information Collected From Industry
The franchise structure includes commitments to service quality which are monitored regularly.
Companies who repeatedly fail the service standards may lose their licenses. There are three basic
performance requirements:
1. Provides minimum dispatch service performance in an individual service zone (51% “on time”
response) and in the overall primary service area (66% “on time” response) of an operator. This
condition is based 15 minute service response time, adjusted for timed calls. Current measures
are based on time between dispatch and meter-on. 2010 allows companies to use the time
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between dispatch and arrival at the door, as validated by the GPS systems integrated with
dispatch.
2. Ten categories of score-able performance criteria totalling a possible 50 points. It is necessary to
gain 30 out of 50 points possible in order to be eligible for franchise extension approval as part
of Condition 2.
3. Meeting other requirements specific to the franchise including commitments made as part of
the business plan submitted when bidding for the franchise.
Performance scores are formalized through a Taxi Service Index. This is a weighted score of telephone
response (two minutes), on-time response (15 minutes), complaints received and verified by LADOT,
vehicle inspection scores, driver and operator violations, administrative cooperation in payments,
information requests, etc.
Regular reports from franchise holders are required. There are seven basic monthly reports or lists to be
submitted to the Department, three quarterly reports and two annual updates, for a total of 98
requirements for the year per operator. These reports include:

Monthly service data for dispatch and phone, service summary reports, driver lists, service
statistics and complaint records (84 annual);

Quarterly reports for accidents, affirmative action employment records and membership lists
(12 annual); and

Annual updates for financial statements and the management business plan (2 annual).
The new franchise terms beginning 2011 will involve these incremental changes to the system:

The % calls that must be served within 15 minutes will vary by district, based on the historical
record collected to date. Some districts will have much higher requirements than 51% on time.

Standards in the Taxi Service Index will be higher than before.

The standards for dispatch and telephone are taking seriously. One company that was not
answering enough dispatch calls on a timely basis was placed on probation. Resulting measures
by that company (largely driver incentives for prompter service) resulted in significant
improvements in service. The improvement was evident in reports on wait times between
dispatch and taxi arriving at the customer’s location.
3. Drivers
To qualify for a driver permit an applicant must be at least 18 years old, hold a California driver’s license,
and be free of a physical or mental incapacity that would prevent the safe operation of a taxi. Applicants
must also submit to a medical report, and a criminal record check. An applicant cannot have committed
a drug related or violent crime in the past seven years, crimes of moral turpitude (ex. fraud) or any
felony, weapons or prostitution related offence. Select driving offences, like a hit and run, can also
disqualify an applicant.
Drivers are also required to be familiar with L.A streets, be able to use a map, be familiar with the rules
and regulations and be capable of speaking English. A driver permit exam is required. Training is also
offered by the taxi companies. These programs are not uniform.
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Drivers in Los Angeles are also expected to submit to a drug testing program. The taxi company the
driver works for must maintain records of the drug test results. Failure of drug tests can disqualify an
individual from driving.
4. Meter Rates
Meter rates are the same for all franchises across Los Angeles:
Entry, and first 1/9th mile - $2.85
Additional 1/9th mile - $.30
Additional 37s of wait time - $.30
Airport Surcharge (LAX) - $4.00
Flat fare between LAX and downtown - $46.50
Minimum charge for trips originating at LAX - $15.00
Passengers can pay with either credit or debit cards.
5. Airport Service
There are two major international airports in the Los Angeles area, Los Angeles International Airport
(LAX) and the LA/Ontario International Airport. Taxis can be found curbside at arrival terminals at LAX.
All of the L.A companies operate vehicles at the airport, but the number of cabs that can serve the
airport is limited. To prevent excess taxi queues at the airport, cab companies rotate ‘airport days’
amongst their drivers. On non-airport days, a vehicle cannot queue to pick up passengers at the airport.
Trips originating at LAX are subject to a $15 minimum fare, and a $4.00 surcharge.
The LA/Ontario International Airport has taxis available curbside outside of baggage claim. Only two taxi
companies operate out of LA/Ontario International.
Limousines must obtain the relevant airport authorities approval in order to operate on airport
property.
6. Enforcement Process
The Department of Transportation employs a team of six inspectors. These inspectors are tasked with
ensuring that taxis abide by city regulations. There has been some concern that more enforcement is
needed. Illegal taxis (termed Bandit Cabs) are a serious concern for drivers. Bandit taxis tend to be
neighborhood oriented, and are a greater problem in lower income areas.
It should be noted that Los Angeles has a significant problem with bandit taxis in some neighbourhoods.
This is a focus of enforcement by LADOT.
Methods of Coping with Peak Demand Periods and Bar Closing
Los Angeles entertainment establishments have different closing times, influenced by zoning rules and
proximity to residential neighbourhoods. Los Angeles does not experience crowds of unserved
customers at bar closing.
However, measures have been taken to improve service in entertainment areas. This includes
designating additional taxi stands at night (appropriately signed) and a general loosening of the rules
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where a taxi can pick up a hail fare or drop off a fare (e.g. at a curb areas marked in red in certain
districts, if it is safe). The latter addresses the issue that Los Angeles taxis are primarily dispatch
oriented, but require hail service at times and places in the entertainment areas. Changing the rules
means that tickets do not need to be issued for traffic violations in these areas.
None of these areas are supervised by the city or by the police, except through the usual patrols and
enforcement. Some designated stands were abused by individual drivers (occupied as stands during
hours other than specified). Selected stands with this issue were withdrawn.
7. Limousines
Limousine drivers and vehicles must be licensed by the California State Public Utilities Commission, a
different and higher level of government. A Limousine service is defined as a luxury sedan or SUV’s
transporting passengers on a prearranged basis. Operators are required to obtain a Charter-Party carrier
(TCP) permit. To qualify, an operator must have a properly register vehicle, proof of insurance, provide a
driving statement, personal background information and undergo drug testing. Drivers require a
California driver’s license. A commercial driver’s license is required if driving a vehicle capable of
transporting nine or more passengers.
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Minneapolis
Jurisdiction Served:
Population (2010 census):
Taxi fleet:
Plates Transferable?
Market value of
plates/medallions:
Number of drivers
Meter Rate - 5 kilometers
(distance only):
*2010 US Census.
The City of Minneapolis
382,578
742 13.1/10,00 population
n/a (open access)
Nil
1250
$10.49
The City of Minneapolis has assigned responsibility for regulation of taxicabs to the Licenses and
Consumer Services Division, within the Department of Regulatory Services of the City of Minneapolis.
The Department of Regulatory Services is responsible for protecting health, safety and welfare of
residents through regulation, and inspection and enforcement.
Limousine services are under the jurisdiction of the State of Minnesota Department of Transportation
(MnDOT). MnDOT is also the central actor dealing with all state transportation policies and programs.
MnDOT states that it is acutely concerned with social and environmental impacts of its decisions and
seeks to aggressively promote the efficient use of energy for transportation purposes.
A distinguishing characteristic of Minneapolis is that it has recently moved from a system of limited
numbers of taxis to an open-entry approach. The balance of the regulatory framework was retained.
1. Regulatory History
Minneapolis has recently moved from a closed entry system to open entry. Since January 1, 2011, there
is no cap on taxi licenses. Prices and service standards remain subject to the regulatory scheme, and
there is still control on maximum meter rates.
A long legal struggle, including a suit by the Federal Trade Commission (FTC), preceded deregulation.
While a formal review process on license numbers was put in place following settlement of the FTC case
in the mid-eighties based on “public convenience and necessity”, it was never used, and Minneapolis
remained one of the cites with the fewest cabs in the country, with just 248 taxis (less than one per
thousand residents).
In the mid-nineties, there was an expansion of the fleet by about 100. Finally, in 2006, an ordinance was
passed (finalized the next year) which would increase the number of cabs each year, with the cap
removed in 2011. There is free entry, subject to an objective standard of applicants being “fit, willing
and able”.
The taxi fleet has roughly doubled under open-entry. From approximately 348 prior to open-entry, the
number of taxis expanded to 820 in 2011 (the first year of completely open entry), before dropping back
to 742 in 2012. Reported values of plates17 were around $25 thousand before open-entry, and are now
17
Minneapolis uses taxi license plates rather than medallions.
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not relevant. The Minneapolis regulator believes that doubting in taxi numbers is a true doubling of fleet
service, rather than partly offset by a move from double-shifted to single shifted taxis. Minneapolis is a
smaller municipality (“not a 24-hour city”), and single shifted taxis existed in numbers before and after
open-entry. A possible excess of taxis was experienced last year, as evidenced from the drop from 820
to 742 in 2012. Parking downtown for taxis became a challenge, as Minneapolis only allows taxis to park
in the limited number of dedicated stands. Overall, the increased supply reflects an increased volume of
use of taxis by the public. The increase is remarkable, especially in light of the establishment of a light
rail transit system at the same time as open-entry was phased in. The light rail system includes the
major shopping attraction, Mall of America, and the airport.
Service remains satisfactory. In the most recent increase in the maximum meter-rate, a number of
companies have declined to change their rates.
2. Taxi Fleet and Industry Structure
Vehicle permits are available to all qualified applicants. Every prospective permit holder is required to be
a citizen of Minnesota, at least 18 years old, have title over the vehicle, go through a criminal
background check, and not be addicted to drugs or alcohol or have a physical or mental disability.
There are now about 742 authorized taxis in Minneapolis. Every firm or individual who holds a taxicab
permit must be a member of a company, cooperative or association. An association must consist of at
least 15 licensed taxicabs (8 in the first year) operating with a common color scheme. Each association
must maintain a place of business 24 hours a day, offer a dispatch service and have a unique color
scheme that allows passengers to identify their brand. The requirement for 24 office and dispatch is
being reviewed in light of current technology, such as cell phones, smart phones, and taxi internet
applications linking taxis with customers in real-time.
Although there is open entry, Minneapolis continues to regulate the lease rate charged to license
drivers. If a vehicle is being leased, the maximum allowable rate is $85.00/ 12 hour shift. If a taxi
operator is leasing vehicles for less than the maximum rate, this rate must be made available to all
drivers. Minneapolis has not received complaints or experienced issues with illegal tipping or other
attempts to bypass the maximum lease rate.
a. Vehicle Standards and Safety
All vehicles must meet certain basic requirements. A vehicle must not be more than five model years
old. A wheelchair accessible vehicle or fuel-efficient vehicle must be no more than eight model years
old. Waivers may be granted if the taxicab meets yearly inspection and maintenance standards. All
vehicles must be painted with their authorized color scheme, be in good working order, and pass
maintenance inspections.
A taxicab must contain at least one of the three following safety features, a camera, a GPS or a driver
partition. Each safety measure must, if used as a safety requirement, comply with the standards
established by the City. More recently, as a result of a taxi driver murdered on the job in 2012, a
universal requirement for a taxi camera is being considered. The driver in this case had a taxi equipped
with GPS, but no camera to record events.
If a GPS is installed as a safety measure, it must be connected with a computerized dispatch system. The
system must be capable of showing the vehicles location within 50 feet. A camera must be mounted,
with a separate, tamper proof and concealed control unit. The camera must be capable of capturing
clear digital and infrared images of the entire backseat. The camera should be activated when the meter
is running, when the doors open or close, or when the driver activates a panic button.
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b. Accessible and Green Taxis
It is required that service companies maintain both wheelchair accessible and fuel-efficient vehicles. Ten
percent of new licenses issued to service companies must be wheel chair accessible and 10% must be
fuel-efficient. It has also been required that existing service companies make 10% of their current fleet
wheelchair accessible and another 10% fuel-efficient. In each subsequent year, an additional 10% of the
operational fleet, excluding wheelchair accessible vehicles, must be made fuel-efficient.
For non-emergency transport for medical reasons, Minneapolis licenses and issues a medical transport
decal, for a license fee of $1000 per year. The license is restricted to transportation for medical
appointments only. Such transfers are largely paid for by the State.
c. New Technology and Performance Standards
There are no legal requirements regarding a taxicab having to accept credit or debit cards.
As noted, GPS devices are optional, but where companies have them, they must be linked to the
dispatch system.
3. Drivers
To obtain a taxi driver’s license an applicant must possess a valid Minnesota driver’s license, be at least
18 years old, go through a criminal background and driving record check, not be addicted to drugs or
alcohol or have a physical or mental disability.
The department tests applicants to determine whether they can speak, read and write in English,
whether they aware of local bylaws and whether they know local geography. A taxicab driver training
course has been established which covers the testable material as well as vehicle maintenance, best
business practices and customer relations and accommodations.
4. Rates
While taxicabs operate with meters, taxi companies may compete on price by offering discounts off
metered rates (the discount applies to all of a company’s cars). Passengers are also able to enter into an
agreement with a taxi to book the vehicle at an agreed rate for an hour, a day, a month or longer. The
agreement is exclusive, but the price is subject to negotiation.
A reduced fare share-ride program also exists for passengers who book their rides on the preceding day.
This program allows taxis to pick up and transport a number of different passengers on a prearranged
basis. The fares are a discounted flat fee rate set by the city that is determined by the distance between
the pickup and drop off zone.
The current maximum meter rate is $2.50 for the first 1/5 of a mile (322 meters) and $0.55 for each
additional 1/5 of a mile. The time rate is $24.00/hr. Minimum fare is $5.00.
a. Rate review
Taxicab fares are subject to annual review. A formula has been created to determine whether fares
should be adjusted. It is based on seven objective factors. These factors are linked to the cost of living,
the cost of operating a taxicab in Minneapolis and changes in the taxi market. The most the fares are
allowed to adjust upwards is 10% a year, and the maximum downward adjustment is 5% a year. The
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10% maximum increase has been reached in recent years. In the most recent year, some taxi companies
have chosen not to take the increase.
5. Airport Services
Minneapolis is paired with the neighboring city of St. Paul. The two cities are separated by a river. The
Minneapolis – St. Paul International Airport is located between them, on the Minneapolis side of the
river. There are taxi stands at both terminals of the airport where cabs from Minneapolis can accept
passengers. The airport licenses taxis separately, although many taxis carry both licenses. An airportlicensed taxi can operate without a municipal license, but it may not pick up passengers outside the
airport.
6. Compliance and Performance Standards
Minneapolis does not have explicit performance standards for taxi service. Required reporting is limited
to trip sheet. Regulations require that trip sheets be submitted by drivers to companies, and that
companies provide such trip sheets every 30 days to the regulator. In practice, only sample trip sheets
are collected on a regular basis. More sophisticated data is available from some taxi companies, and
there is a general tradition of cooperation with the regulator to meet ad hoc requirements.
Vehicles are subject to spot checks by an inspector. Licensees are warned that this is a 7x24 possibility
and are provided with a self-assessment copy of the inspector’s checklist. In addition, comprehensive
inspections by appointment are conducted annually, and on initial licensing.
Drivers must pass a criminal record check and a medical check; meet requirements for language, city
knowledge, and knowledge of laws and regulations.
Regulations also address driver behavior and insurance requirements.
7. Limousines
As noted, limousine service in Minneapolis is regulated by the State of Minnesota, a higher level of
government. Limousines are defined as a luxury car for hire service. Limousines can provide service by
prearrangement only. Requirements for luxury are relatively low for North America. The fare must be
more than a taxicab meter rate on comparable trips, but there is no minimum premium. Limousines do
not use meters. In order to qualify for a permit, a limousine service must be a sedan advertised by the
manufacturers as ‘luxury’ vehicles, or with a suggested retail price over $25,000. Other types of vehicles
that have been ‘stretched’ also qualify as limousines.
Limousine drivers do not require an operator’s permit, but must meet State qualifications. A driver must
be at least 18 years old, a good driving record over the past three years, and must not have been
convicted of any of the listed criminal offences. It is the responsibility of the limousine operators to
ensure that all drivers meet these standards. The operator must conduct the review of all drivers
criminal and driving records. This review of driver’s qualifications must be conducted initially and
annually.
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New York
Taxi fleet:
Jurisdiction Served:
Population (est2010)*:
Taxis per 10,000 Population
Drivers:
Plates Transferable?
Market value of
plates/medallions:
Meter Rate - 5 kilometers
(distance only):
*2010 US Census.
13,237 Medallion Taxi’s including 232 wheel chair accessible taxis
38,116 For Hire Vehicles (21,227 Livery Cars, 8,104 Black Cars, and
6,484 Luxury Limousine)
New York City, New York
8.175 Million
16.2
Over 50,000
Yes, but with restrictions.
$650,000 - $1,000,000 USD depending on type.
$14.53
Under New York State law, municipalities may regulate the taxi industry. In New York City the
responsibility for regulating the taxi and for-hire vehicle (FHV)) industry is with the Taxi and Limousine
Commission (TLC). The Commission advises City Hall on the state of taxi services within the city, and
oversees the process of regulating and licensing over 100,000 drivers, and 50,000 cars. The
Commission’s board is composed of nine members. Four members are appointed by the Mayor. The
other five members, one representing each borough of New York City, are recommended by way of a
majority vote amongst councilmember’s from each of the respective boroughs.
A distinguishing feature of New York’s system is its dual approach to license limitations. There are
Medallion Taxi’s and other for-hire vehicles (FHVs). The Medallion taxis, with the iconic yellow
checkerboard pattern, are limited in number, and the licenses have acquired considerable value over
time.
Medallion taxis have the exclusive right to accept riders by way of hail and rank. Less well known is that
Medallion taxis do not pick up passengers on a pre-arranged basis, except for handicap accessible
vehicles. Licenses to serve the dispatch and pre-booked market are not limited in total number. Thus
the dual nature of the approach: open-entry for the dispatch market, and controlled numbers for the
street-hail market served by the yellow taxis.
The high price for one of New York’s limited yellow taxi licenses, over $1 million at times, is also well
known. When new yellow taxi licenses are needed, they are auctioned, with revenue going to the City.
A rationale for limiting the number of yellow taxis can readily be seen when looking down on the street
from tall buildings in Manhattan, the high density island in the city centre. Yellow taxis can make up
more than half the vehicles at a stoplight. Higher numbers would lead to congestion. The urban
density of downtown New York also means very high parking costs. This in turn leads to low car
ownership, high use of yellow-taxis for travel, and a large market for “black-car” transportation by New
York executives commuting daily from more suburban locations to the downtown.
A challenge for the New York system has been lack of coverage by the yellow taxis of neighbourhoods
outside of downtown, and of low income neighbourhoods within the city centre. As a shortage
developed in the 1960’s, a “gypsy cab” industry (mainly livery cars cruising for fares illegally) began to
flourish, especially in underserved neighbourhoods.
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More recently, New York has garnered world headlines with a plan to auction 2,000 more yellow taxi
medallions, with potential revenue on the order of $1 billion. In addition, New York may license as
many as 18,000 new “borough” taxi licenses, issued on a first-come first serve basis to current for-hire
vehicle licensees. They will serve the street-hail market outside of the yellow-taxi core service area of
midtown and downtown Manhattan, and the two airports. The borough taxis will address the longstanding complaint of lack of hail service in the outer areas. These vehicles will have a standard colour
other than yellow, and be available at a more affordable $1500 for a three year permit. At the time of
writing, this plan has cleared most hurdles to implementation. The state legislature approved the plan
conditional on the 2,000 new yellow taxis being wheel-chair accessible. 20% of the Borough taxis will be
accessible as well. A court challenge from existing medallion holders achieved a stay, based on wheelchair accessibility issues, but the stay was overturned on appeal as of March, 2012.
Another distinguishing feature of New York is its leadership in new technology and reporting
requirements for taxis. All taxis must have real-time GPS reporting, and a back-seat passenger display
that shows current location, allows processing of credit cards by the passenger, and offers advertising
and other features.
The New York City TLC’s stated focus is to provide safe and efficient transportation service for visitors
and residents. The regulators perceive their role as allowing markets to work and to intervene only
when necessary, for example when dealing with issues of safety, and unwanted externalities such as air
pollution. Consistent with the increased number of vehicles and the volumes of money involved, the
annual budget of the TLC is normally $32 million, but has increased to approximately $60 million for the
fiscal year beginning July 1, 2012 to manage the new license auctions and accessibility grants.
1.
Regulatory History
Motorized taxis have been on the streets of New York for over a century. In 1907, the first metered taxis
where introduced. Shortly after, the Checker Cab Company became the industry leader with their
famous yellow cabs with checkerboard decals.
With the steady fall of vehicle prices, the number of cabs grew rapidly in the 1920’s, with periodic price
wars. In 1929 there were more than 20,000. The Great Depression aggravated the situation, as out- ofwork job seekers attempted to scratch a living driving cabs. Drivers worked long hours, with few fares.
Drivers’ wages plummeted as shift hours increased, and sometimes vicious competition broke out
between companies and drivers. While cab fares dropped, passengers sometimes faced aggressive
solicitation and unsafe vehicles.
As a result, the Hass Law was passed in 1937 to limit the number of licensed cabs. At the time there
were 13,595 licenses, 8,383 owned by fleets, and 5,312 individually owned. The latter could not be
transferred to fleet owners. With the weak economy, the number of active taxi Medallions began to fall
eventually bottoming out at 11,787. A Medallion had little resale value at that time.
The number of medallions remained unchanged, and as the population and economy in New York grew,
taxi demand increased. The value of these Medallions skyrocketed. Today, corporate Medallions sell for
over $1,000,000. In 1996 the City began to issue new permits, and the number of Medallions has
increased to 13,237.
There have been recent efforts to increase the number of hybrid vehicles and to increase competition
between Medallion taxis and other types of for-hire vehicle services. The problem of undersupply in
Northern Manhattan and the other four boroughs is the focus of the new borough licenses.
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2.
The Taxi Fleet and Industry Structure
The number of Medallion Taxi’s is currently fixed at 13,237, of which 231 are restricted accessible.
Changing the number of taxis requires passage of a bill in the New York State legislature.
Medallions are issued under two different classes of ownership, Minifleet and Independent Medallion
owners. Independent Medallions are for owner operated taxicabs, and are subject to an owner-mustdrive rule, at least 180 shifts of 9 hours each year. This type of owner is also prohibited from having an
ownership interest in any other Medallions.
Minifleet Medallions are owned by a business entity or individual with no driver requirement. These
Medallions must be owned in groups of two or more. A Minifleet Medallion has a minimum operational
requirement of two 9 hour shifts per day, including holidays.
Both Independent and Minifleet Medallion owners may lease a taxicab (or a medallion only) to a
licensed driver. The rate at which the lease is made is capped by regulation. Hybrid and diesel taxicabs
are subject to a separate, slightly higher maximum lease rate. The Medallion owner remains
responsible for vehicle standards and maintenance for any vehicles leased.
Regular Rate/Hybrid or diesel rate:
$93/108 for all 12hr day shits.
$103/118 for the 12hr night shifts on Sunday, Monday, Tuesday.
$108/123 for the 12hr night shift on Wednesday.
$117 /131 for the night shifts on Thursday, Friday and Saturday.
$582/687 for any one week shift for one week or longer.
The maximum credit card pass along that is allowed to be charged by lessors is 5%.
a.
Assignment and Transfer
The most recent issuing of new Medallions was in 2008 when the city auctioned off 89 new Medallions,
87 of which were restricted to Accessible vehicles. Between the years 2004-2008 a total of 1,050 new
Medallions were issued.
When new Medallions are issued the TLC holds a public, closed bid auction. Oversight is the
responsibility of the Commission Chairperson.
There is also a very active market for the resale of Medallions. While allowed, all transfers must be
approved by the TLC. Prospective Medallion owners must disclose financial details along with supporting
evidence that the tax and license requirements have been met. When a medallion is transferred outside
of the fare market value range (a +/-$10,000 deviation of the previous month’s average transfer price),
additional disclosure is required by the TLC in the form of a letter from the Department of Finance.
The current market price for a Medallion depends on the ownership, and operational restrictions placed
on it. Independent Medallions without accessible or clean air restrictions placed on them are
approaching $700,000 USD. The MiniFleet class of Medallions without restrictions are now breaking the
$1,000,000 USD threshold.
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Other major players assist in business operations. There are 67 licensed Medallion Agents who can act
on behalf of owners to ensure Medallion vehicles are being constantly operated by drivers. There are
also 26 licensed Taxi Brokers who can assist in the transfer of Medallions.
b.
Vehicle Standards
The TLC sets specific requirements which a vehicle must meet, such as having at least 3 doors, and being
of a certain size. This leaves open a number of potential vehicle options. Ford Escape hybrids are often
used as ‘Clean Air’ hybrid vehicles, and minivans of many different makes are used as wheelchair
accessible vehicles. New York has recently announced that the Nissan NV200 won the Taxi of Tomorrow
contest which was intended to find the future exclusive provider of Medallion vehicles. The choice of
Nissan NV200 was criticized for not being wheel-chair accessible. This plan has been modified
somewhat by New York’s current proposal to expand taxi licenses and accessible taxis.
From a safety perspective, New York cabs are some of the best equipped in the US. All fleet cars must
have distress lights and a safety partition. Individual medallion owners may install a camera instead of
the partition. If a camera is used, it must be capable of recording in all light conditions, it must capture
images of at least 510x480 pixels, have ports for at least 2x cameras, and be powered by the car’s
battery. Image capture must be linked to meter engagement, door openings, and panic button
activation. The camera must be concealed in tamper resistant hardware, and images are not to be
stored in the camera. There must be front and back distress lights, which can be activated by the driver.
c. Accessible and Green Vehicles
Medallions with accessibility restrictions require owners to operate vehicles which are capable of
working with people with physical disabilities. As noted above, plans for a significant expansion of the
number of permits are now conditional on the cars being wheelchair accessible.
There are also ‘Clean air’ restricted taxicabs which require the vehicle to pass a specified emissions
standard. There are 5887 hybrid vehicles currently operating, which far exceed the number of
Medallions restricted to “Clean Air” vehicles. These are popular amongst both Minifleet and
Independent operators. The cars are leased at higher rates, but the rise in fuel cost also makes them
increasingly appealing to drivers. It will also be possible to convert the NV200 for wheelchair
accessibility.
d. New Technology
All Medallion taxis have been equipped with Technology Passenger Enhancement Program (T-PEP)
systems. This device is fitted with a GPS which shows the passenger where they are on a display screen.
It also allows passengers to access fare and service information, pay by credit or debit cards, and view
advertisements. In addition to changing the passenger experience, the TLC also has direct access to the
real-time system in its operations centre. If a customer left their wallet in a taxi and can remember
where and when they were dropped-off, the taxi can be identified and the driver can be contacted
immediately. The real-time trip data for each vehicle is also collected by the regulator and is available
for analysis. To handle the volume of data, a high capacity server is required.
The Medallion owner is responsible for installing and paying for the T-PEP system.
3.
Drivers
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There are over 50,000 licensed taxicab drivers in New York. An applicant must hold a valid Chauffeur’s
license, and have completed a defensive driving and taxi training course, and an English language exam.
There is also a mandatory drug test for drivers. A successful applicant will be first granted a one year
licence, which can be renewed for two year intervals afterwards. Renewal depends on continuing to
hold a good driving record, submitting annual drug test results, and retaking the defensive driving
courses every 3 years. Many taxicab drivers began driving FHVs, with a slightly less onerous licensing
process described below.
Taxi drivers must attend a course administered by a testing service approved by the Commission. This
test covers topics related to service expectations, New York geography, local bylaws and best business
practices. The minimum requirement is a 24 hour course, but an 84 hour course is available. They must
also attend a defensive driver course. There is an additional accessible services training course for
drivers who wish to qualify to operate wheelchair accessible vehicles.
Licenses can be suspended and revoked for drinking while driving, use of a cab for an unlawful purpose,
or for the accumulation of demerit points from less severe violations stemming from driving and service
infractions. Any violation results in the licensee being served with a summons to appear before the
Commission’s Adjudications Tribunal. Parties before the tribunal may be represented by counsel, and an
appeals process exists.
4.
Meter Rates
Passengers in a Medallion taxi are charged a regulated meter rate for all trips. The current City Rate
(Rate Code 1) is:
$3.00 flag drop ($2.50 entry + $0.50 MTA tax)
+$.40/unit (1/5th mile or 60s)
Night Surcharge $.50 (8pm-6am)
Evening Rush Hour Surcharge $1 (Mon-Fri 4pm-8pm)
Passengers are also responsible for any toll charges (at the discounted EZ-Pass rate).
Other Rate Codes include:
Rate Code 2: flat-fare ($45.00) to or from Manhattan to JFK Airport
Rate Code 3: City rate + 15.00 surcharge for trips to Newark Airport
Rate Code 4: Out-of-City to Westchester or Nassau Counties rate – twice the City rate
Rate Code 5: Negotiated Fare – all trips outside of NYC and Westchester or Nassau Counties
Rate Code 6: Group-ride fare - $6 per passenger
Rates are adjusted intermittently, and there is no specific formula that is applied.
5.
Airport Service
There are taxi stands in front of all terminals at both JFK and LaGuardia airports. There are flat fees
between JFK and Manhattan. LaGuardia does not have a flat fee for individual fares, but does for group
passengers at the airport’s group stand.
Newark airport, which is located in nearby New Jersey, is reachable from NYC by a Medallion taxi, but a
New Jersey cab must be taken back to New York. Trips to Newark are also subject to a $15 surcharge.
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FHVs can be dispatched to each of the major airports. An NYC FHV can operate in Newark, NJ if it is
licensed in both jurisdictions. It is possible to be qualified to operate in a number of different
jurisdictions simultaneously.
6.
Compliance and Performance Reporting
Taxicabs are checked three times annually, and FHVs semi-annually to ensure they are in good condition
and the meters are adjusted.
By integrating with the taximeter, the T-PEP equipment automatically captures the pick-up and drop-off
location of every fare. Paper trip sheets have disappeared as the TLC now receives the data
electronically. However, these data do not appear to be used to assess operator performance against
set performance standards. New borough taxis will also be required to have the T-PEP equipment.
7.
Service Integration and Other For Hire Vehicles
A small number of group ride stands exist between transit hubs in New York City. There is a group stand
in central Manhattan which allows passengers travel to the financial district, or any point along the way,
for a flat per person rate.
As noted, there is no Medallion or plate system for For-Hire Vehicles (FHV) which are in partial
competition with taxis. FHVs are designed to operate on a dispatch only basis and all other FHVs are
prohibited from accepting a hailing passenger, although it is not uncommon for these vehicles to accept
hails in poorly served neighborhoods. These cars also differ in appearance, as they cannot be painted,
even in part, in the distinctive taxicab yellow. These cars may center their operation in particular areas,
but can deliver passengers to and from any part of the City.
A ‘base’ is a licensed dispatch center. Each base operates as an independent company within the FHV
industry. Bases can compete with each other through quality of service provided, or by being local
options.
The three classes of FHVs are livery cars, black cars, and luxury limousines.
Livery cars are the most common type of FHV, with 23,528 vehicles operating. Sometimes referred to as
Community Cars, these cars are relied upon in Northern Manhattan and the other four boroughs of the
Bronx, Brooklyn, Queens, and Staten Island. Medallion taxis are not as available by hail.
Any cars chosen by Livery operators must meet vehicle specifications, and pass TLC safety standards,
which include either a camera or a partition.
There are 488 licensed Livery Car bases, which operate as dispatching companies. They are located
throughout the City, with proportionately more in Brooklyn.
Black cars have a business model which requires a driver to become a franchisee, or a member of a cooperative. Black Cars compete as a premium car service. Drivers normally wear suits. Rates charged are
higher than taxis and the vehicles operated are more expensive. The drivers must do at least 90% of
their business on a non-cash basis. Vouchers and company accounts are commonly used. Black Cars are
not required to have protective partitions, or distress signals, or cameras.
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The Black Car fleet also has higher minimum regulated quality requirements. Currently a Black Car must
retire after it is 8 model years old, and by 2015 a car’s lifespan will be reduced to 5 model years. Black
cars which meet the emission standards have their mandatory retirement ages extended 1-2 years
depending on how emissions friendly the cars are. The Lincoln Town Car is the most common vehicle,
but other models are used. This will change as the Lincoln Town Car production has been discontinued.
There are 81 licensed Black Car bases (companies). Black Cars bases are unique because they have a
franchise or cooperative relationship with their drivers. The bases depend on seeking out exclusive
contracts with businesses, becoming their transportation provider. The companies with contracts can
then attract a franchisee that is dispatched to service contracts.
Luxury Limousines, like Black cars, must do at least 90% of their business on a non-cash basis. These
operators must also charge on a garage-to-garage basis, and require greater insurance coverage than
Black cars. Like Black Cars, Limos do not have to install safety partitions, distress signals or cameras. A
Luxury Limousine is most distinct though because these vehicles are allowed to operate with up to
twenty passengers, although Limo’s do not have to exceed any additional seating capacity. These
vehicles do not have mandatory retirement ages.
There are 288 Luxury Limousine bases which are dispersed across New York City.
Driver Licensing
Prospective FHV drivers of all types apply for the same license. There are 55,214 licensed drivers in this
class. Like Medallion taxicab drivers, FHV drivers are required to hold a valid Chauffeurs license, and to
pass a defensive driving course. Unlike the taxicab drivers, FHV drivers are not required to understand
English, or to have local knowledge.
Accessibility
The FHV industry is also expected to provide accessible service to passengers with disabilities at the
same price. Some companies contract out their accessible services, and the contractors charge a higher
rate, and may not always be available.
Other Forms of Transit Regulated by the Limousine and Taxi Commission
a)
Paratransit
There are 2469 Paratransit vehicles and 3414 licensed drivers. These drivers service passengers with
disabilities who cannot use buses or subway transit. The Metropolitan Transportation Authority (a staterun authority) offers a program called Access-a-Ride. This program contracts with private carriers, who
are regulated by the TLC in order to help people with disabilities. Door-to-door pick up and drop off is
available.
Paratransit companies can contract their services out privately to other car companies as
subcontractors, or with institutions and facilities with Paratransit needs.
b)
Commuter Vans
There are 433 commuter vans, and 289 licensed drivers. . The vans are licensed by the commission to
operate in an authorized area, where they transport passengers by prearrangement. They are barred
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from competing with public bus services by being prohibited from picking up or dropping off passengers
along city bus routes.
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Phoenix
Jurisdiction Served:
Population (2010 census):
Taxi fleet:
Plates Transferable?
Market value of
plates/medallions:
Drivers
Meter Rate - 5 kilometers
(distance only):
Taxis in Phoenix operate under State of Arizona law
Arizona: 6,392,017, Phoenix: 1,445,632
Roughly 2,000 Licensed vehicles for hire throughout the State
(Taxicabs, Livery cars, and Limousines.) 3.1 taxis per 10,000
population state wide (concentration in Phoenix will be higher)
No (open access)
Not applicable
$9.42 for airport departure only. Other meter rates not regulated.
In Arizona, taxis, limousines and livery vehicles have been explicitly identified as an area of State
concern, to the exclusion of municipal regulation. Airports are exempt, and they may license cars and
fares. Since licensing is at the state level, companies operating in both Phoenix and Tucson, for
example, may move cars freely from on to the other.
The State Department of Weights and Measures oversees taxicab regulations. The Department has a
professional and permanent staff which is led by a Director who is appointed by the Governor.
1. Regulatory History
Arizona had a regulated taxicab industry in 1912 when the State joined the United States. A certificate of
public convenience and necessity was required in order to obtain a license. Numbers were limited and
fares and taxicab operations were also subject to regulation.
In June of 1982, Arizona moved to an open access licensing regime, and fare prices were left to market
forces. Over the past decade in Phoenix there was growing concern about the poor quality of vehicles,
and the dangers associated with taxicab rides. In 2011, while city council debated new rules, the State
intervened, declaring the vehicle for hire industry a matter of state concern, and requiring drivers to
have criminal background checks.
Data reported by Teal and Berglund show that, while the number of taxis increased over 80% in the first
years after deregulation, fares also went up. This led to a fall in demand and lower industry productivity
(fares/cab and fares/shift)18.
2. Taxi Fleet and Industry Structure
Since there is no limit placed on the number of taxicab licenses available, it is unnecessary for licenses to
be transferable. Potential operators need only meet basic requirements. An operator must have an
Arizona driver’s license, a vehicle which has been registered with the State, and proof of insurance. It is
also required that owners have written maintenance records, and evidence that a criminal background
check of any driver of the vehicle.
18
Teal, Roger F., and Berglund, Mary, “The Impacts of Taxicab Deregulation in the USA”, Journal of
Transport Economics and Policy, January 1987, pp. 37-56.
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Taxicab companies in Phoenix operate more than just taxis. Many of the larger companies also operate
limousines, livery cars, medical transport, and tow trucks. All of these vehicle types can operate under
the same trade name, and from the same dispatch center.
Leasing is possible. Lease rates have not been regulated by the State.
a. Vehicle Standards
Taxicabs in Phoenix must be in good working order, and pass the maintenance requirements. Beyond
this, the regulations are silent regarding minimum vehicle standards, such as safety equipment.
b. Wheelchair Accessible and Green Taxis
Taxicab companies do provide accessible service, but there is no regulatory requirement with respect to
vehicles. Disabled and senior passengers are subsidized by the City of Phoenix and through Federal
grants. Coupon books are sold people 65 and over, and to people with disabilities. The first $20 worth of
coupons is sold at a 70% discount, and the second $20 is sold at a 50% discount. A maximum of $40 per
month can be purchased for $26.
Green service is not a regulated requirement in Arizona, but a number of Phoenix companies do use
hybrid vehicles.
c. New Technology
Taxicabs must use taximeters. Technology beyond this is not required, such as credit card machines, but
many taxicab companies do use them. In practice, a number of Phoenix based taxicab companies use
advanced GPS dispatching technology.
3. Driver Licensing
Prospective taxi drivers are required to have an Arizona driver’s license, but there is no other mandatory
driver training or testing, such as English. Some major taxicab companies employ a number of Spanish
speaking drivers.
The taxicab license holder is also required to have a criminal record check of all drivers of the licensed
vehicle.
4. Meter Rates
Arizona does not prescribe maximum meter rates, and rates vary across the State. Taxicab must still
operate on a meter, but are free to select the pricing variables. In Phoenix taxicab companies operate
with a number of different fare structures. The cost of credit card machines may be built into the meter
price, as companies may set their own rates.
Company marketing has also taken advantage of Arizona’s tough drinking and driving laws. Special drop
off and pick up rates from entertainment spots can be arranged.
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5. Airport Service
As noted, the Phoenix Sky Harbor Airport has authority to make rules relating to vehicle for hire
regulations at the airport, and setting a uniform metered rate. The airport authority has entered into
contracts with three taxi companies and six limousine companies.
Trips Originating at the Airport:
Drop rate (first mile): $5.00
Additional Mile: $2.10
Wait time: $21/hour
Maximum fare: $15
Airport Surcharge: $1
Limousines are available at three of four terminals. Their rates are not determined by the Airport.
6. Compliance and Performance Standards
Signage and meters are the subject of regular inspection. Rates and driver ID must be posted.
Taxi companies are not required to provide the state with a reporting of their activities, for example, the
number of trips, where their trips originate by neighbourhood, or dispatch response times.
7. Limousines
Regulated pursuant to the same law, limousines and livery cars are also available for hire throughout
Arizona. A limousine operates on a prearranged basis only and cannot solicit, and both vehicle types
operate on flat rates. Just like taxicabs, all vehicles must be registered and have a valid insurance policy.
Drivers must hold a valid Arizona driver’s license. Operators of these vehicles must have evidence of a
valid criminal record check of all drivers.
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San Francisco
Taxi fleet:
Jurisdiction Served:
Population*:
Taxis per 10,000 Population
Plates Transferable?
Market value of
plates/medallions:
Meter Rate - 5 kilometers
(distance only):
*2010 US Census.
1,585 Medallion Vehicles (Includes 100 wheelchair accessible
“Ramp” Taxis, plus fifty single-operator licenses (max 60 hours/week,
and two electric vehicle medallions))
The City and County of San Francisco (coextensive)
805,235
18.6
Most are not. Pilot project underway transfers a limited number.
Fixed price: $250,000
$11.49
In San Francisco the responsibility for taxi regulation has been placed with the San Francisco Motor
Tranportaion Agency (SFMTA). This agency’s Board is composed of seven Directors appointed by the
Mayor, and appoints its own Executive Director. The Taxi Advisory Council provides input from the San
Francisco taxi industry. The Council has 15 members, comprising 3 members from the 3 largest taxi
companies, 3 representatives from smaller companies, 3 medallion holders not employed by a company,
3 drivers on the waiting list, and 3 drivers not on the waiting list. By the end of 2012, the Taxi Advisory
Council ends its mandated life and will be replaced by regular “Town Hall” meetings open to all industry
stakeholders. During 2012, both TAC and the Town Hall formats are in use.
The SFMTA has a broad mandate. Not only does it regulate Taxis, but it also oversees other public transit
modes including (buses, streetcars, and cable cars), bikes, pedestrians, and car traffic. The SFMTA
approaches its transit mandate with a very broad goal, of promoting safe, environmentally friendly and
‘sustainable streets.’ They believe each mode of transportation is important, and that each
complements the others. The SFMTA also views its proper focus as extending forward in time, with a
stated concern about future generations.
A distinguishing feature of San Francisco’s taxi system is the focus on owner-drivers. The majority of
medallions are held by individual drivers and are not transferable. Drivers must remain active
(minimum 800 hours per year), but may lease the balance of their shifts to other drivers. To protect
drivers who do not have medallions and lease their cars on a per shift basis, San Francisco also regulates
the daily lease charge (termed “gate fees”) per shift.
Key issues facing San Francisco today include:
 The advancing age of its medallion holding taxi drivers. As the total number of taxis are limited
and have changed only slowly over the years, the medallions command a lease value. To retain
these returns, medallion holders keep driving for as long as possible. The SFMTA is currently
experimenting with a sale program allowing a limited number of older eligible drivers to transfer
medallions to those on a waiting list for a fee not to exceed $250,000. Since the waiting list was
begun many years ago, the average age of those wait-listed is also high. The average wait time
hovers around 15 years.
 Poor dispatch service. San Franciscans find it difficult to obtain reliable taxi dispatch service,
particularly in neighbourhoods remote from the city centre. Most of the available supply is tied
up serving street-hail fares. Taxi companies often report that there are no taxis available for
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

dispatch. When taxis are dispatched, high rates of no-show are reported. This in turn has led to
higher rates of no-show by customers when the taxi does arrive.
Loss of market share to limousines. Limousines are licensed at the higher state level by the
Public Utilities Commission. Although distinguished by advance booking requirements and fare
differences, this requirement has become vague with third party internet dispatch applications
integrated with limousine company computer dispatch. Some hotels and other operators are
also reportedly employing contract fleets of limousines to serve their clients.
Bypassing & abuses of the gas & gates lease rate regulation. Controls on the lease rates
charged drivers are being bypassed by alternative long term contract arrangements. Drivers
also complain about tipping and other fees added beyond the regulated gas and gates fees.
The SFMTA is currently undertaking a complete review of all aspects of taxi regulation, including the
number of taxis permitted to operate.
1. Regulatory History
San Francisco allows cabs to work both the dispatch and cabstand and street hail markets. The dispatch
market represents less than 30% of the total market. Most of the available supply competes for streethail fares in the downtown market. Regulation began following the Great Depression as it did in many
other cities. Following WW2, permits again became a major issue because many returning soldiers
became taxi drivers. (In fact, a major San Francisco taxi company ‘National Cab’ used to be Veterans Cab
Company).
San Francisco is located in the State of California. California has a culture of ballot initiatives during
municipal and state elections. Such initiatives can be complex, and are binding on the state. The
evolution of San Francisco’s taxi regulation is tied to a series of such ballot initiatives.
In the 1970s there were growing concerns about inequities in the taxi industry. Many permits were held
by taxi companies and were becoming very expensive to purchase or lease. In 1976 Yellow Cab Company
of San Francisco, which had the majority of taxicab medallion permits went bankrupt, putting the entire
taxicab service system in chaos. A movement to prohibit the resale of permits and place ownership in
the hands of individual drivers grew. The result was Proposition K, a ballot initiative, adopted in 1978,
which has shaped the industry until very recently. Although it led to a substantial increase in the
number of permits, of more than 40%, problems with service in the dispatch market remain. [Q2
Research Group, in Schaller, pp. 10-11].
Under Proposition K, drivers were made owners of taxi permits (termed medallions19). These were not
transferable, but today San Francisco is experimenting with the restricted sale of some taxi permits (see
Allocation & Transfer below). There is a desire to create an asset for owner operators, and to generate a
new revenue source for city finances.
Up until 2009, taxis were regulated by a Taxi Commission under the San Francisco police.
Dissatisfaction with this administration, and a desire for an integrated approach to transportation, led to
a successful ballot initiative transferring jurisdiction to the public transit agency, the SFMTA. The
transfer of taxi jurisdiction was only one aspect of a larger ballot initiative on transportation and
governance.
2. The Taxi Fleet and Industry Structure
19
Unlike New York, there is no physical medallion. License plates are used. New York medallions are bolted (and
unbolted) to the hood of the car by inspectors employed by the regulator.
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The rights and responsibility attached to a Medallion differ depending on the date it was issued,
whether they are “Pre-K” or “Post-K”. Under Proposition K, taxi permits (Medallions) could only be
issued to natural persons who did not already hold a Medallion, and were not transferable. It also
imposed a driving requirement, limiting permits only to working drivers. The driving requirement is 800
hours, or 156 4-hour shifts a year. There are still, however, a significant number of ‘Pre-K’ Medallions
held by Taxi Companies and individuals.
There are 28 taxi companies in San Francisco, each with distinctive colour schemes. Every taxicab must
be affiliated with one of these companies. There are also 9 licensed dispatch services, of which four are
operated by taxi companies. The 24 taxi companies which do not have their own dispatch service must
form an arrangement with the other 5 dispatch services.
Taxi companies can potentially move between dispatch centers, and drivers and Medallion holders have
the ability to move between taxi companies.
Permit holders can also earn money by leasing out the right to drive. The traditional method is to lease
by the shift through a taxi company. This arrangement is termed “gas and gates” after the gate fee
which is paid to the taxi company that allows the driver to lease the vehicle for up to a 10 hour shift.
The inclusion of “gas” in “gas and gate” is an acknowledgement that the taxicab must be returned with a
full tank of gas. The term “gate” refers to the gate on the company lot that releases the vehicle into the
street. The maximum gas and gates fee that can be charged to a driver is regulated. A driver will pay
no more than $96.50 for a vehicle over a 10 hour shift. This fee is prorated at $9.65 per hour. If a driver
is leasing a low emission vehicle, a surcharge of $7.50 can be charged over a 10 hour shift, which is
prorated at $.75 per hour.
The business arrangements behind taxi leases in San Francisco can vary. All drivers must be affiliated
with a taxi company, but only a small number of permits are held by the company (the old “pre-K”
Medallions). This has created a situation where drivers who do not own Medallions can either lease the
right to drive from a company (who are usually leasing it themselves from the medallion holder) or
lease from an individual Medallion holder directly. Since the majority of medallions are held by
individual drivers, who may change affiliated company at their choice, a great deal of the market power
is held by medallion drivers. Companies compete to retain the patronage of these drivers. Newer
companies that lack “pre-K” medallions are especially interested in competitive measures to retain their
medallion holder clients.
Medallions which are being operated by a taxi company are referred to as ‘Gas and gates’ Medallions.
Under this model the company has the ability to schedule drivers, and can charge a gate fee to drivers.
In addition to “gas and gates” arrangement, there are “affiliated leases”. Affiliated leases are contracts
between a driver who holds a Medallion and a driver who does not. The lessee pays the medallion
holder directly for the use of the car and Medallion. An additional fee will also have to be paid to a taxi
company for use of their colour scheme, and dispatch services. The amount of money passing through
the taxi company under this arrangement is smaller. In the past decade, the proportion of affiliated
lease arrangements has increased.
There are two types of affiliate arrangements. 1. Is the owner/operator model, where the medallion
holder is the owner of the vehicle, generally pays for his/her own insurance, and has hi/her own drivers.
The taxi company is paid a fee for use of its dispatch as well as its trade dress. 2. The second type is
where a driver who is not the medallion holder, or affiliated with the company exercises control of the
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medallion and has an arrangement to do so either with the company or with the medallion holder
directly
Recently there has been growth in “affiliate” leases. There is concern that these arrangements bypass
the “gas and gate” fee regulations. In addition, under affiliate leases, the associated companies may
rarely see the actual vehicle, and be unable to effectively monitor the condition and compliance with
regulations.
There are also Ramp Medallions, which are restricted to operating wheelchair accessible vehicles only.
Ramp vehicles make up 100 of the current 1,585 Medallion total. Ramp Medallions have additional
eligibility requirements. An applicant must have been a full time ramp taxi driver for the preceding 12
months, have made at least 156 wheelchair pickups, and complete an interview through a process
approved by the Paratransit Coordinating Council (PCC). The PCC will determine if the applicant has the
satisfactory aptitude and attitude to be a Ramp driver.
It is possible to remain on the waitlist for a sedan Medallion permit while holding a ramp Medallion, but
a holder of a ramp taxi Medallion cannot accept any other Medallion for a period of at least 3 years
upon receiving the ramp Medallion. If the holder becomes eligible for another Medallion within this
three year period, it cannot be accepted. Ramp Medallion holders can after a 30 month minimum give a
notice of intent to leave the program. This notice becomes effective after 6 months. After this period
other Medallions can be accepted. Not being able to accept another permit because of the limitations
placed on a Ramp Medallion does not affect ones position on the waitlist.
As well, of the 1,500 Medallion, 92 have been designated ‘alternate fuel.’ These medallions must be
operated in conjunction with hybrid vehicles.
a. Allocation and Transfer
The number of licensed vehicles in San Francisco is limited by the supply of Medallions. New Medallions
may be issued by the SFMTA but there must first be a Public Convenience and Necessity hearing.
Currently there are 1,535 fulltime Medallions, but 52 more Medallions, not all of which are full time,
have been authorized for issue over the next two years.
A recent pilot project has created some exemptions to the Pre/post-K scheme. Under this new project,
some permit holders are able to sell. There is a current concern that some elderly drivers are unable to
retire because they depend on the revenue generated from leasing their permits. Now, drivers who are
over 65 and incapable of driving have the option to sell their permit.
In addition to the 300 elderly drivers who have been identified as eligible to sell under this scheme,
SFMTA is looking to sell 60 permits which have been revoked or returned. There is an interest in testing
how permits as transferable assets work. These re-issued permits also sell for the price determined by
the SFMTA, but revenues will go to the city’s emergency fund for the fiscal year.
The SFMTA determines the sale price by taking into consideration what it believes to be a fair price
based on the interest and financial means of drivers and sellers. This price is currently $250,000,
although it can be changed so long as not to exceed $400,000. Of this price, 80% will go to the retiring
driver. A 15% share goes to the SFMTA, and 5% to a driver fund dedicated to assisting taxi drivers in
need. The driver fund has accumulated funds. Criteria for expenditure remain to be defined.
b. Vehicle Standards
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San Francisco taxicabs are painted one of the 28 authorized colour schemes. These colour schemes
display which company a car is affiliated with. Taxicabs can come in a number of shapes and sizes so
long as they fit within a range of regulatory requirements. No vehicle more than 6 model years old can
be brought into service and no vehicle more than 8 model years old can remain in service. Mileage is
also a consideration. Vehicles cannot have more than 70,000 miles when coming into service, and must
be retired after 325,000 miles. Some companies make it a policy to exceed these minimum
requirements, and advertise having the newest cars.
There are a wide range of vehicle models which are permitted. The Ford Crown Victoria was a popular
sedan, but North American production is now discontinued. The Toyota Prius and Ford Escape Hybrids
are also popular options for hybrid vehicles.
Taxicab safety equipment is not mandatory. Security cameras and safety partitions are optional. Some
companies require security cameras as private policy. If cameras are installed, they must be approved
by the SFMTA. Vehicle distress lights are not required, or regulated at all.
c. Accessible and Green Taxis
As noted, 100 licenses are Ramp Medallions, and 92 more have been designated “alternate fuel”. The
Ramp Medallions drivers are under a general requirement to give priority to wheelchair cabs. When a
driver is dispatched on a ramp service call, they are prohibited from picking up another passenger along
the way. A wide range of minivans are used as wheelchair accessible vehicles.
There has been a recent move to issue new part time, and electric vehicle medallions. The issue of 50
part time medallions would limit holders to 60 hours of operation per week was also recently
authorized. The expectation is that these operators would naturally allocate themselves to cover peak
demand, without oversupplying the market at other times. The two electric vehicles medallions also
authorized are intended to promote testing of new all-electric vehicles now being commercially
available in North America.
d. New Technology
Vehicles must be equipped to process all major credit cards.
Some taxi companies operate with more advanced equipment. For example Luxor Cab Company
operates a GPS based dispatched system. The dispatch system is in turn integrated with TaxiMagic, a
well-developed internet/smart-phone taxi request system currently offered in a number of cities. Other
companies work with a similar local service, Cabulous.
To improve dispatch service, the SFMTA is also considering development of a universal internet
application/service similar to TaxiMagic and Cabulous, in which all companies would participate.
The SFMTA is preparing to require Taxi companies to switch to an electronic Waybill format. This new
system will at minimum be capable of recording the GPS generated origin and destination of each trip,
trip and shift mileage records, specific trip fare information, and shift information. This data will be
required to be recorded and produced in a format that is sortable, and submissible.
3. Driver Licensing
Prospective taxi drivers in San Francisco must become licensed. The taxi driver license is termed an A
card. There are approximately 7,000 licensed drivers.
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Taxicab Regulation in North America 71
In order to qualify for a license an applicant is required to hold a California State driver’s license, speak
English, be at least 24, pass a drug test and have a letter of ‘intent to hire’ from a taxi company. In this
respect taxi companies can limit the supply of available drivers.
In addition there is mandatory training. All applicants must attend an authorized training school to
obtain a driver training certificate, and a sensitivity training certificate. There has also been discussion
regarding the inclusion of an Intro to Safe Cycling course. Applicants must also pass a test administered
by the SFMTA based on the driver training course.
4. Meter Rates
The trip rates charged to passengers are regulated by SFMTA. The meter rate is set at:
Entry, and first 1/5th mile - $3.50
Additional 1/5th mile, or one minute - $.55
Airport Surcharge - $2.00
Luggage Surcharge20 - $1
Out of town trips, 15 miles beyond city – 150% fare rate
Passengers can pay with all major credit cards, and the credit card fee of 5% is paid by the driver.
5. Airport Service
Public rail transit plays a significant role in airport transportation. There are three operating rail services
which can take travelers to neighboring cities, or to other parts of San Francisco. Taxi cabs link up with
the BART network at busy stops which connects to the airport ‘air rail’. This may be an indirect way taxis
assist airport transit.
There are designated taxi zones in front of all of the terminals at the San Francisco Airport. A number of
charter car services also operate out of the airport. It is possible to book pre-arranged vans, and
limousines for service at the airport.
Trips to the airport in a taxi are subject to a $2 surcharge.
San Francisco’s international airport is not located within the City and County of San Francisco. Instead,
the City leases land outside the municipality, and pays an annual fee to the county where the airport
resides.
6. Compliance
The SFMTA employs a small team of field investigators who work to ensure that regulatory
requirements are being met by taxi operators. These investigators issue citations for infractions, and
conduct under-cover work. An Administrative hearing process has been designed to hear cases dealing
with these citations. Although the enforcement team is small, they are also supported by a contract
branch of the police department responsible for traffic tickets and policing in the city centre.
Taxis from other jurisdictions are not permitted to pick up customers within the jurisdiction. However,
enforcement is not strong in outlying areas close to other jurisdictions.
20
When luggage is too big for trunk, and must take up a seat in the vehicle.
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72 Taxicab Regulation in North America
7. Other Forms of Vehicles for Hire Regulated by the SFMTA
a. Jitney Buses
Jitney buses are vehicles for hire that are also regulated by the SFMTA. These buses are privately owned
and operated as a shuttle service. An applicant for a Jitney bus permit must apply for a specified route
which must be approved by the SFMTA. This route is included in a permit as a condition. The rate which
a jitney bus must charge is pegged to the Adult Base Cash fare for the Municipal Railway.
b. Limousines
Limousine drivers and vehicles must be licensed by the California State Public Utilities Commission, a
state body (higher level of government). A Limousine service is defined as a luxury sedan or SUV’s
transporting passengers on a prearranged basis. Operators are required to obtain a Charter-Party carrier
(TCP) permit. To qualify, an operator must have a properly register vehicle, proof of insurance, provide a
driving statement, personal background information and undergo drug testing. Drivers require a
California driver’s license. A commercial driver’s license is required if driving a vehicle capable of
transporting nine or more passengers.
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Taxicab Regulation in North America 73
Seattle
Taxi fleet:
688, of which 351 and jointly licensed with King County. (There are
241 additional licenses in King County, not licensed for Seattle.)
Jurisdiction Served:
Population (est2010)*:
Taxis per 10,000 Population
Plates Transferable?
Market value of
plates/medallions:
Drivers:
Meter Rate - 5 kilometers
(distance only):
*2010 US Census.
The City of Seattle
608,660
10.2
Restricted
Average of $146,000
About 1200
$10.02
Seattle places the responsibility for taxi regulation with the Department of Finance and Administrative
Services. This department is a recent amalgamation of several departments with diverse responsibilities.
The department oversees everything from a centralized accounting facility, to local gas pumps, to the
taxicab industry.
Seattle operates two classes of vehicles for hire, taxicabs and other dispatch-only vehicles for hire.
Limousines also operate within Seattle, but are regulated by the State. The City of Seattle enforces
regulations with respect to limousines, as well as performing vehicle inspections.
Seattle is of special interest because it was a jurisdiction that was among those that deregulated in the
1970’s, but then reversed and reregulated a few years later. Thus it provides an interesting case study.
It is also of interest, however, because there is substantial inter-jurisdictional cooperation, dating from a
1995 cooperative agreement between Seattle and surrounding King County (which includes the airport).
1. Regulatory History
Seattle has a somewhat unique regulatory history in that it was regulated, deregulated, and reregulated.
Originally, there were a limited number of licenses set as a ratio to the overall population, and
prescribed fare rates and regulated standards.
Seattle removed the cap on the number of taxi permits in 1979, and allowed firms to set their own fares.
The results were not what were expected. While the supply of taxis increased slightly, fares did not go
down relative to regulated jurisdictions, and a hoped-for wave of rate scheme innovation failed to
materialize21. Overall, demand for taxi services fell. Large companies still dominated the dispatch
market, and new services and business models did not emerge. Meanwhile, at the airport, with a firstin-first-out rotation, no price competition emerged.
A Taxi Liaison Group was established to channel feedback, and attempt to improve service. In 1984, the
City placed a moratorium on new licenses, and fixed fares. The process of reregulation had begun. The
21
Teal, Roger F., and Berglund, Mary, “The Impacts of Taxicab Deregulation in the USA”, Journal of
Transport Economics and Policy, January, 1987, pp. 37-56.
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74 Taxicab Regulation in North America
number of taxicab licenses was frozen at 667 in 1990 but over time a few were returned to the city for
lack of business so there were 643 actives by 1996.
The total license cap was raised by ordinance in 2008 to 850, with a 35 per year cap, to allow for
issuance of additional licenses as needed to meet demand for taxicab services are economy expanded.
In 1997, a range of new standards were adopted affecting new vehicles and driver testing. Further
reforms were adopted in 2008, fixing maximum lease rates, and programs to encourage more fuel
efficient vehicles. Restrictions were imposed on the transfer of new licenses for a period of 5 years after
issuance.
The value of Seattle licenses has climbed steadily since 1991, from just $2,500 to $146,000 in 2011.
Joint licenses with King County sold for an average of $208,000 last year. Both values exceeded the
previous highs set in 2006.
2. The Taxi Fleet and Industry Structure
A vehicle permit is required to operate a taxicab in Seattle. All taxicabs must be affiliated with a
dispatch service, and must bear the trade colours.
Seattle has a relatively sophisticated model to determine the appropriate number of permits actually in
use. Using various records from, among other things, data dumps from meters when cars are inspected
and outbound airport trips, estimates are made of total revenue trips on a yearly basis. Using a base
year of 2005-06, which was judged to be a “normal year”22, and establishing the normal dispatch
response time at 10 minutes, all this data can used to determine how many new licenses at a given point
in time to restore the “normal” conditions.
When the City issues a license, it must be distributed either by competitive request for proposal and
award process, a lottery of the best qualified (only 10% of active drivers qualify), or a combination of the
two. Newly issued licenses come with a requirement that the license holder must drive. The minimum
driving requirement is for 30 hour per week (40 for wheelchair accessible taxicab licenses), over 40
weeks per year for the first five years. Applications for a license are made by individuals. For example
the 929 Seattle and King County taxicab licenses are held by 700 different businesses. Licenses which
have been issued since 2008 must be held for at least 5 years before they can be transferred.
They are currently selling for as much as $180,000, depending on the company association. A Seattle
taxicab license market value is at least $150,000 ($180,000 at Yellow Cab).
351 taxicabs licensed in Seattle are also licensed in King County (which includes the airport by
cooperative agreement with the Port of Seattle). A 1995 agreement between the two jurisdictions
allows cabs with both permits (which can be acquired in a single process) to operate seamlessly in each
area. The meter fare rates for each jurisdiction are identical, although King County may apply a second
rate on the meter below the Seattle maximum. Moreover, the regulatory bodies share administrative
duties: King County licenses all drivers and Seattle licenses all vehicles, simplifying administrative work
for drivers. If a permit owner is licensed in both jurisdictions and wishes to transfer the vehicle permits,
the permits must be transferred together.
Recent reforms have brought in maximum lease rates, following driver complaints that it was difficult
for them to make a fair wage. The result was that no more than $75 can be charged to lease a vehicle
22
A recent rate hike allowed estimation of the drivers’ income elasticity, i.e., the amount they reduced their
effort when their revenue increased.
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Taxicab Regulation in North America 75
for a 12 hour shift or $420 per week or $1,680 per month. The exception to this is fuel efficient vehicles
which can demand an additional $15 charge over a 12 hour shift or $105 per week or $420 per month.
a. Vehicle Standards and Safety
No vehicle over seven years old can be licensed as a taxicab in Seattle. All vehicles must meet inspection
standards. The traditional workhorse of the taxi fleet has been the Ford Crown Victoria former police
cruisers available for $5,000 at public auctions with about 80,000-100,000 miles. This is changing, as
Seattle has adopted more fuel efficient standards for vehicles. This has led to more Toyota Priuses being
purchased as taxicabs and Chevrolet Impalas converted to CNG.
From a safety perspective, taxicabs are required to install cameras, a GPS system, and a silent alarm
system. Affiliations must be able to monitor their taxicabs in real time over the GPS device. Cameras
must be capable of collecting digital images, and must meet director specifications.
b. Accessible and Green Taxis
Accessible taxi permits are not subject to the permit cap, or the annual limit of 35. When issued, these
permits must also be held for five years before they can be transferred.
At present there are 45 such licenses. The appropriate number of Accessible licenses is estimated using
average dispatch response times in a similar way to regular taxis, but allowing extra time to secure the
passenger before the meter is engaged from the time of the original call.
There are also 347 hybrid taxis in Seattle, and 110 CNG (compressed natural gas) licences.
c. New Technology
Seattle taxicabs are required to accept credit cards. As noted, all cars must also have GPS systems,
which can monitor the cab in real time. The data is shared with the Department.
3. Drivers
To obtain a for-hire driver’s license, good for taxis and other for hire vehicles, an applicant must be at
least 21 years old, be fluent in English, have a valid Washington State driver’s license, pass a criminal
record, and driving history record check.
In addition, an applicant must have completed a training program approved by the Director. The four
day program covers local geography, defensive driving, and use of equipment, safety and customer
service. Applicants also ride with a trainer for at least 3 full shifts, including at least one night shift. There
is also an exam to ensure that applicants are sufficiently knowledgeable about vehicle safety, geography
and have basic English skills.
4. Meter Rates
Seattle has a prescribed meter rate fare system. Reflecting Seattle’s experiment with deregulation,
companies can still offer discounts, which are an advertised proportion off of the metered rate, but
these must be the same for all cars.
Current Meter rates:
Entry and first 1/10th mile: $2.50.
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76 Taxicab Regulation in North America
Every additional 1/10th mile: $.25.
Waiting time: $.25/ 30 seconds
Each additional passenger beyond two passengers, for persons over 12: $.50.
This system is somewhat unique in that it has built in a surcharge scale that reflects changes in gas
prices. The gas surcharges are:
$/Gallon - Surcharge
$4.00 None
5.00 - 1.00
5.50 - 1.50
6.00 - 2.00
6.50 - 2.50
7.00 - 3.00
7.50 - 3.50
It is also possible to hire a cab on contract for a period of use. The contract must be written and can be
based on distance, zone or an hourly rate calculated in 30 minute intervals.
5. Airport Services
The Seattle Tacoma Airport is in King County, outside Seattle. As noted above, there were problems in
the deregulatory period. The taxicabs at the airport stand were mostly independents with all different
rate plans23 filed, so airport passengers did not know how to choose.
The airport taxicab stand is exclusively serviced by Yellow Cab. Yellow Cab is contractually obligated to
the Port of Seattle to provide service to passengers waiting at the taxi stand within 5 minutes. Failure to
do so results in a $50 fine, to a maximum of $500 a day.
There is a downtown to Airport flat rate of $32, which is being raised to $40, the approximate meter
rate.
6. Compliance and Performance Reporting
There are regular compliance checks on vehicle safety and meter accuracy. As noted, data is retrieved
from the meter that is used in the analysis of the appropriate number of taxis.
GPS data received from the companies is used to estimate average response times by zone, although
companies are not held to specific performance requirements. Service to less dense neighbourhoods is
naturally not as quick.
7. Service Integration and Other Vehicles for Hire
As noted, taxis from King County regularly operate in Seattle and vice versa. The two jurisdictions have
collaborated to facilitate interoperability. The meter fare rates for each jurisdiction are identical. It is
common for taxis to have a valid permit for each jurisdiction.
a. For Hire Vehicles
23
There were 101 different rate plans (i.e., a combination of drop, distance and time charges) for the 168
companies operating in Seattle.
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Taxicab Regulation in North America 77
Seattle allows for a maximum of 260 transferable for hire vehicle licenses. This number does not affect
Seattle’s ability to license more vehicles beyond this number. For hire vehicles compete with taxicabs in
the dispatch market. They are prohibited from soliciting passengers.
These vehicles are not metered, and charge their passengers a flat fee by zone, or by hourly rate. These
rates must be filed with the Director, and must be displayed within the vehicle.
For hire vehicles must, like taxicabs, be equipped with an operable digital security camera, but do not
require GPS or silent alarm systems. These vehicles are not required to accept credit cards
b. Limousines
A limousine service in Washington State is a for hire car service which operates on a prearranged basis,
and does not use a meter. A limousine is unmarked. Limousine vehicle permits are not limited.
Somewhat unusually, the majority of vehicle inspections for state registered limousines are done by
Seattle. A law passed last year giving Seattle the authority to enforce the state limousine law in Seattle,
because of widespread noncompliance.
Drivers must obtain a limousine carrier license. A Limousine company must certify that all drivers are at
least 21, hold Washington state driver’s license, have completed a department approved driver’s license
training course. They must also certify that drivers have completed an approved training course, passed
an exam, a background check and a passed a medical.
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Toronto
Taxi fleet:
Capped at 4,951 including 1,403 Ambassador plates (single
owner/driver), of which 85 are for accessible taxis.
City of Toronto
2,748,420
18.0
Ambassador licenses are not transferable, the others are.
$270-290,000 CAD
Jurisdiction Served:
Population (est. 2010)*:
Taxis per 10,000 Population
Plates Transferable?
Market value of
plates/medallions:
Drivers:
Approximately 10,850
Meter Rate - 5 kilometers
$12.85
(distance only):
*2009 Civic Census projected to 2010 based on Statistics Canada CMA projections.
Toronto is a large city with a vibrant downtown core. A high proportion of taxi rides originate at
cabstands or by street hail, although they also have radio dispatch. Toronto taxis and limousines are
regulated by Municipal Licensing and Standards Division of the City of Toronto.
The Toronto Licensing Tribunal also plays an important role. It is a quasi-judicial body created for
hearing administrative issues. The Tribunal is composed of no more than six members appointed by the
City Council, and one Chair appointed by City Council. Members of City council and those who have
served on Council with the past three years cannot serve on the Tribunal.
Since 1998, all new licenses have been for a new “Ambassador” class, designed to increase the number
of owner operators. The pride of ownership and increased training were expected to improve the
customer experience. Currently, a comprehensive taxi review is underway, that will examine:
a) the effectiveness of the current Ambassador taxicab owner program;
b) the viability of requiring all taxicab owners to use a single dedicated taxi vehicle;
c) a strategy for more effectively providing accessible on-demand taxicab service;
d) the appropriateness of the present number of taxicabs in the City;
e) the establishment of comprehensive rules respecting licence/plate ownership and
transferability; and
f) the re-evaluation of specific regulations with respect to taxicab leasing, designated agents and
the role of taxi brokerages that are in line with the healthy viability of the industry.
Toronto is a classic license limited regime with two particular points of interest. One is because of its
large increase in the taxi fleet using a licensing scheme that was restricted to owner/drivers, whose
drivers had to complete substantial additional training. Toronto also has a large and well-established
taxi driver-training program that markets to other jurisdictions.
1. Regulatory History
Taxi numbers were first regulated in the 1930’s. Falling vehicle prices in the 1920’s led to a doubling of
supply, and an influx of new drivers in the Depression drove down company and driver incomes. By
1953, there were 1500 taxicab licenses, up from just 1313 twenty years earlier.
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Over the past 50 years, there have been a series of incremental reforms. In 1963, Toronto turned
licenses into transferable assets, which eventually led to the emergence of ownership groups. In 1968,
three owner’s lists were set up based on how many licenses an owner held. New licenses were issued in
restricted proportions to people who belonged on each list, with slightly higher proportions being
available to those who own fewer licenses.
A ban on leasing had proved difficult to enforce, and some drivers, who had been renting on a daily
basis, also felt vulnerable without a longer formal lease agreement. In 1974, leasing was permitted.
In 1976 the ownership lists were done away with, and a much higher proportion of new licenses were
allotted to drivers who did not already hold a license. At first 90% of new issues were made available
only to drivers. Ten years later, half of new licenses were allotted to owners, and half were allotted to
drivers.
During the 1990s, there was a growing concern about service quality. Vehicles were getting old, and
there were complaints about drivers. A new class of “Ambassador” licenses was introduced in 1998. All
new licenses are of this type, which require a much more thorough training program. The previous
licenses are grandfathered and remain essentially unchanged.
2. The Taxi Fleet and Industry Structure
Under the current regulatory regime there are three different types of vehicle licenses: Standard,
Ambassador and Accessible. Licenses that were held prior to the 1998 Ambassador program are called
standard licenses. These are the most common, with approximately 3,480 currently held. A licensee may
convert their standard license into an ambassador class license. No new Standard licenses can be issued,
even if the license is revoked, or otherwise terminated.
There are currently 1,403 Ambassador Class licenses. Before a prospective owner can receive an
Ambassador license, he must complete an intensive training course offered by the Municipal Licensing
and Standard Division. This course is 40 half days in length and covers topics ranging from geography,
professionalism, safety, how to deal with disabilities, and best business practices. In order to pass the
course, an applicant must receive at least a 70% on all work, with a cumulative score of 80%.
There are also 85 accessible vehicle licenses, which serve disabled passengers exclusively, although the
regulations explicitly allow for other license classes to use accessible vehicles. In so doing, the driver
does not have to exclusively service disabled passengers. There are currently 44 Ambassador owners
operating duo-purpose accessible vehicles.
It is still possible to lease a vehicle under a standard license and accessible licenses can also be leased.
There is no set maximum lease rate in Toronto, but the regulation require that any rates be filed with
the Division, and be fair.
a. Allocation and Transfer of Licenses
Only Ambassador and accessible plates are now issued. To get an Ambassador plate, drivers put their
names on a list. To qualify, someone must have been a full time taxi driver for the past three years and
have successfully completed the training requirements. They must remain a full time taxi driver in order
to remain on the list. The plates are distributed according to seniority to the drivers.
The actual number of taxi licenses is fixed by Council motion. Toronto is one of the few cities to make
an effort to estimate the appropriate number of taxis. A 1998 guideline formula based on a weighted
average of population growth, employment growth, public transit (TTC) ridership, and convention
delegates. The weights were estimated statistically by analysing the relationship between potential
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80 Taxicab Regulation in North America
demand factors and growth in taxi demand, measured indirectly using statutory declarations of driver
incomes required by Toronto.
As a result, the city released 1403 new plates to drivers on the seniority list, recognizing that an
Ambassador plate is driven by one person, whereas standard licenses can have more than one shift with
different drivers. The City now believes that it has too many plates and has not applied the formula
since, nor issued any further licenses. Not all plates that are surrendered, for whatever reason, are
automatically reissued, and the actual number of Ambassador plates in circulation is less than 1350.
Ambassador class licenses are not transferable, and cannot be leased. If a license owner sells the vehicle
and equipment, the license is terminated. The Municipal Licensing and Standards Division has the
discretion to reissue a new license to the buyer, who must operate the vehicle him- or herself.
b. Vehicle Standards
All vehicles must pass maintenance inspections and be of good working order. A Standard licensed taxi
cannot be more than five model years old, with two exceptions. If the vehicle has been operated by the
owner, it may remain in service for six years, and if the vehicle was brought into service new, it may
remain in service for seven model years. An ambassador class license can be no more than two model
years old when brought into service, and cannot remain in service for more than six model years. If the
vehicle was brought into service while new, it may also remain in service for seven years. Accessible and
natural gas vehicles may remain in service for seven model years, and cannot be more than two years
old when they come into service.
With respect to safety, cabs must have cameras and emergency distress lights that can be activated by
the driver. GPS which allows dispatch to see the vehicle location, is another optional (non-mandatory)
safety tool used in many taxis.
c. Accessible Taxis
There are 85 accessible vehicle licenses, which exclusively service disabled passengers, which are within
the Ambassador program. In addition, the Toronto Transit Commission also operates a wheelchair
accessible transportation system, with minibuses and shuttle buses. As well, the Toronto Transit
Commission continues to purchase “kneeling buses” which are wheelchair accessible.
Green and accessible vehicles have an exemption, permitting a slightly longer vehicle life. Fuel efficiency
standards or incentives are under consideration.
d. New Technology
Few taxicab companies in Toronto do accept credit cards, but this is not a requirement. Recently, a
number of cab companies have offered debit card services for an additional fee that may range from
$.50 to $2.00. Notices and decals have recently been put into taxis to notify the public that an additional
fee may be charged for the use of credit or debit cards. If a taxicab driver is going to accept credit cards,
the fee is a cost of doing business.
Use of GPS is voluntary, but is becoming more widespread.
3. Drivers
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Taxicab Regulation in North America 81
One of the distinguishing characteristics of the Toronto taxi regulation is the extensive training required
of applicants under the current owner-operator Ambassador taxi licenses. They are all experienced
drivers (licenses are granted on a seniority-list basis), but Ambassador Taxicab owners must undergo
additional training, with the purpose of developing a higher level of professionalism. The Ambassador
training course is 40 half days long and covers topics related to owning a taxicab, such as financial
planning, city bylaws, and marketing in addition to the topics covered in basic training. The Ambassador
course also covers an in-car, rough weather driving component. The passing grade for all quizzes and
exams is 70%, and students must finish with an overall cumulative average of 80%.
All drivers must have a taxicab driver’s license. The applicant must have a valid Ontario driver’s license,
pass a medical, and have a valid First Aid/CPR certificate. In addition, an applicant must undergo an
intensive training program.
There is still a new driver training program administered at the Training Center of the Municipal
Licensing and Standards. The Training Center is the largest in North America and trains approximately
5,000 drivers annually, including many from other jurisdictions. The Primary Course is a 17 day program
that covers geography, safety, professionalism, and business practices. The course is a mixture of
lectures, group work, role playing and discussion. Applicants must receive at least 70% on weekly
courses and the final exam, and maintain a cumulative average of 80%. Taxicab driver refresher courses
are also required every four years. The refresher course is three days long, and is meant to keep drivers
updated on all recent industry developments.
Experienced drivers who wish to drive accessible taxis are required to take the Accessible Taxicab
Driver/Owner Course. This is a five day course which focuses on equipment handling, human rights, and
how to deal with disabled passengers. There is also a practical assessment. Students must receive a
grade of 80% on all examinations, and 100% on their in class practical assessment.
4. Meter Rates
The Toronto fare structure is simple in comparison to many other jurisdictions.
The current meter rat includes Ontario’s new Harmonized Sales Tax (adding 8% points to the GST). It is:
$4.25 for the first 143 meters
$0.25 for each additional 143 meters
$0.25 for each 29 seconds waiting time
5. Airport Services
Toronto’s major airport, Pearson International Airport, is in the adjacent municipality of Mississauga.
The airport regulates taxi and limousine service, requiring a license and setting vehicle standards. The
Airport Authority has issued 360 licenses to taxis, and 276 to airport limousines. Taxicabs without a
license to operate in the airport may still pick up passengers on a prearranged basis only.
6. Compliance and Performance Reporting
All cars are regularly checked to ensure they are in good condition and the meters are adjusted.
The City does not currently collect information from the industry on a regular basis.
7. Limousines
In Toronto, a limousine is by definition a vehicle for hire which is not a taxicab. There are approximately
700 licenses limousines. There is no specific limit on the number of limousine licenses. These vehicles
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82 Taxicab Regulation in North America
operate on a prearranged basis only; passengers must request the services of a limousine driver at least
20 minutes before desired pick up time. Limousines do not use metres, and are subject to minimum
rates. A limousine must charge at least $70/hour for the first two hours of operation. Beyond this initial
minimum, Limousine services are free to set their own fare rates so long as they are filed with the
Municipal Licensing and Standards Division and disclosed to passengers.
Limousine licenses are not transferable. While the license is not transferable, the Municipal Licensing
and Standards Division has the discretion to issue a new license to the party purchasing the limousine.
Licenses are also terminated upon the death of the holder, although in some circumstances a license
may be issued to the estate for up to one year. The estate may sell the limousine equipment, but in
doing so the license will be terminated, and only reissued to the purchaser at the discretion of the
Municipal Licensing and Standards Division.
Operation of a limousine requires a limousine driver’s license. In order to qualify, an applicant must have
a valid provincial license, be at least 18 and pass a medical. Applicants must also complete a five day
limousine driver training course is provided by the Training Center of Municipal Licensing and Standards
Division, and complete a First Aid/CPR course.
There are two classes of limousines: stretch limousines, and sedan limousines. A stretch limousine
cannot remain in service beyond eight vehicle years. A sedan limousine may not remain in service more
than five vehicle years. Other than that, all limousines are subject identical vehicle and operational
standards.
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Washington DC
Jurisdiction Served:
Population (2010 census):
Taxi fleet:
Plates Transferable?
Market value of
plates/medallions:
Drivers:
Meter Rate - 5 kilometers
(distance only):
Washington, D.C
601,723
6,500-8,000, Best estimate 7,000
Non-transferable
n/a
7,730
$7.41
The District of Columbia Taxicab Commission (DCTC) regulates both the taxi and limousine industries in
Washington. The Commission is headed by a chairperson who is responsible for the day to day
operations, which involve licensing and enforcement. The DCTC is supported by the Office of Taxicabs,
which is deals with administrative matters such as carrying out examinations, maintaining records, and
receiving complaints.
There is also a panel on Rates and Rules, and one for Consumer and Industry Concerns. Each panel is
comprised of four commissioners who serve three year terms, appointed by the Mayor with advice from
council. On each panel, two commissioners are members of the public, and two are industry members.
The Panel on Rates and Rules has jurisdiction to establish reasonable rates for taxicab service, and
standards for licensing, service, safety and equipment. The Panel on Consumer and Industry Concerns
has jurisdiction to adjudicate all complaints lodged in the Office of Taxicabs, and all intra-industry
complaints. The panel can also issue reasonable rules to govern intra-industry relationships, and is the
body which hears and decides complaints and appeals regarding violations of the bylaws and
regulations. The panel also has an investigative function on issues within the taxi industry. If the
investigation relates to a subject under the authority of the Panel on Rules and Regulations, a report will
be made to that body.
Washington DC is of interest because it remains one of the few large U.S. cities to retain an open entry
system. While the number of taxi and limousine operators is not capped, a temporary freeze on new
permits was imposed in November of 2010, and has recently been extended pending a number of
legislative and regulatory amendments. Washington has one of the highest per capita taxi service levels
in North America. While taxi availability is generally very good, concerns about the quality of operators
and vehicles as well as illegal operators led to the suspension of new applications pending a thorough
review of taxi operators and companies; and the legislative and regulatory changes noted above.
1. Regulatory History
For many years Washington was the largest city to have open access to taxi licenses, until the State of
Arizona imposed open access on Phoenix in 1982. The supply of taxis is determined by the number of
drivers willing and able to qualify for a license. This has led to a taxi industry with a relatively high
number of cars and drivers.
In November 2010, the DCTC placed a freeze on the issuance of new licenses for independent taxicabs,
limousine companies and limousines operators, while the Commission reviews the regulations and
policies governing the industry. Established taxi companies may still add cars or upgrade their fleet. The
Order makes specific mention of the need to review certain “areas of concern” with respect to taxis,
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while limousine inspections and the education and training of drivers are being reassessed. The Order,
which has been extended, will be reviewed on June 30th, 2012.
2. Taxi Fleet and Cab Industry Structure
At present, there are about 8,000 taxicabs in Washington, resulting in perhaps the highest number on a
per capita basis in the country. The taxi licensing process is open to all qualified applicants. Drivers must
have their vehicles registered and inspected in order to ensure compliance with applicable regulations.
Licenses may not be transferred.
Although it is possible to lease a vehicle in Washington, due to the accessibility of vehicle permits, most
drivers own their own cars. The ratio of licensed drivers to licensed vehicles is 1.1:1. The DCTC does not
regulate lease rates.
a. Vehicle Standards
All vehicles must meet the standards prescribed by the DCTC. Taxis must be sedans, minivans, or station
wagons with at least two rear doors. All taxicabs must be mechanically safe, and meet inspection
standards semi-annually. A recent proposed rule published in February 2012, will require the
progressive retirement of older cars, some of which may even be 15 years old. By 2017, no car on the
road will be more than 7 years old.
Washington taxicabs must have some sort of driver safety feature installed. The DCTC requires a safety
partition, a camera, a driver distress light system, or a dispatch radio. A driver must install at least one of
these systems. Not all Washington taxicabs operate in conjunction with a dispatch service. Without
someone on the other end of the radio, a radio cannot be installed as a safety device.
If a camera is installed into the cab, it must be mounted on the dashboard, or rear-view mirror, able to
record in clear images the entire backseat with clear images. Most of the drivers opted for the driver
distress light system.
b. New Technology
In Washington taxicabs are not required to have installed credit or debit card machines. Some taxis do
accept payment by credit and debit card, but machines for accepting payments are not subject to any
standardized technical requirements.
GPS devices are not required, but are being considered. However, there is currently a Request for
Proposals issued to develop a fully automated back seat system in taxis similar, but more current, than
New York.
c. Accessible Taxis
Up until 2011, Washington had no wheelchair accessible taxis. Neighbouring jurisdictions were
permitted to run trips within the DC boundaries. However, in 2011, 20 accessible taxis were brought in
and licensed, 10 to each of two large companies. Following the introduction of this service, accessible
taxis from other towns were restricted to pre-arranged cross-border trips.
3. Drivers
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To obtain a taxi drivers license an applicant must meet all of the training requirements and
qualifications. All prospective drivers must be at least 18 years old, have a valid D.C driver’s license, and
have lived for at least one of the past three years within Washington area, and have one year of driving
experience in the area. All applicants must be of good character, which relates to drug and alcohol use
and criminal history. Drivers must also be free of mental illness.
All applicants for a License must complete the 60-hour Hack License Training Course offered by the
University of the District of Columbia (UDC), and pass an oral, written, and timed, computerized
examination administered by the DC Taxicab Commission. This exam also tests an applicant’s ability to
communicate in English. These tests have been suspended during the moratorium.
4. Rates
Washington has recently moved to a regulated meter system. Previous to the meter, taxicabs charged
drivers based on zones. The city was divided up into a number of zones, and the fare was determined by
which zone the pickup and drop off locations where located in, and how far apart these zones were. This
fare system was criticized in part for its uniqueness. Visitors to Washington were unfamiliar with the
criteria and geography it was based upon, leaving them vulnerable to being overcharged, while some
local people thought that it was not always clear how the number was determined. Others liked the fact
that exact fares could be known, and paid for, up front.
New meter rates were put into effect earlier this year. They are as follows:
 $3 drop, including first 1/8 mile;
 25c for each additional 1/8 mile;
 Wait time of $15/hour.
A $19 maximum fare has been recently removed.
5. Airport Services
There are two major airports in the D.C area, Dulles and Reagan National. Dulles Airport is exclusively
serviced by a taxi service called Washington Flyer. This service itself is exclusive to the airport, as all of
its trips either begin or end in the airport. Washington Flyer also operates a shuttle bus, and coach
service from the airport. Reagan National Airport is serviced by a number of different taxi companies
from various jurisdictions including D.C. Reagan National is serviced by limousine services as well.
6. Compliance and Performance Standards
DC taxis must pass a vehicle inspection every six months.
There are no performance standards, for example in terms of dispatch response times or service to lowservice areas, other than the fact that cabs cannot refuse fares according to the destination area. There
are no particular requirements to transmit performance data to the DCTC.
7. Service Integration and Other Vehicles for Hire
Taxis from Arlington, Fairfax, Alexandria, and Montgomery may enter D.C to pick up passengers on a
prearranged basis, so long as those passengers are traveling to a destination outside of D.C. If a cab
from another jurisdiction is already in D.C., it cannot then be dispatched for a D.C pickup, nor pick up a
passenger to be dropped off outside of D.C. and they cannot accept street hails or cruise for passengers
in DC. Log books must be kept in order to enforce these rules.
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a. Limousines
A limousine service in Washington is a for hire car service which operates on a prearranged basis, and
does not use a meter. A limousine cannot in anyway hold itself out to be a cab, or a taxi. The term
limousine covers all non-taxicab vehicles for hire capable of carrying a maximum of nine passengers
excluding the driver. The vehicles operated as limousines include sedans, SUVs and stretch limousines.
Limousine services operate both as companies with a dispatch base, or independently operated as an
owner operated limousine.
Washington limousine drivers also compete against out of town car services. Inter-jurisdictional
limousine permits allow car services which are validly licensed to operate outside of D.C the ability to
operate in Washington. The permit allows drivers to pick up passengers in D.C on a prearranged basis.
These inter-jurisdictional permits last for up to 30 days and are available only during periods where
there are ongoing events requiring increased service. The events recognized as warranting these
permits include the Presidential Inauguration, the International Bankers Convention and the World Cup.
A prospective limousine driver is required to obtain a limousine license. An applicant must be at least 18
years old, fluent in English, have a valid license from a state which is a member of the Drivers License
Compact, be of good moral character and free of mental disability.
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Taxicab Regulation in North America 87
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Appendix A
List of Interview Respondents
Appendix A
Interview Respondents
The authors wish to acknowledge the valuable information provided by these respondents regarding
their respective jurisdictions.

Brian Bernhardt, Licensing Processor, Department of Code Enforcement, City of Indianapolis

Adam Collins, Administrator, License and Permit Services, Department of Code Enforcement,
City of Indianapolis

Mark Cohen, Director, Licensing Division, Boston Police Department

Cindi Davidson, Director of Policy, New York City Taxi & Limousine Commission

Tom Drischler, Acting Chief, Bureau of Franchise & Taxicab Regulation, Los Angeles Department
of Transportation

Pat Hilden, District Supervisor, Licenses & Consumer Services Division, City of Minneapolis

Eve Jennings, Project Director, Department of Business Affairs and Consumer Protection, City of
Chicago

Craig Leisy, Manager, Consumer Affairs Unit, City of Seattle

Emilio Leonardis, Manager, Training, Municipal Licensing and Standards, City of Toronto

Shawn Marquez, Director of Compliance Programs, Department of Weights and Measures, State
of Arizona

Jarvis Murray, Manager, Enforcement and Legal Affairs, Taxi Services, San Francisco Municipal
Transportation Agency.

Dena Reed, General Counsel, District of Columbia Taxicab Commission

Barbara A. Webb, Legal Secretary/Personnel, Nevada Taxicab Authority
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2 Appendix A: Respondents
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