City
Explores Regulating Cab Service |
By Jorge Casuso
November 25 – There are more cabs per capita in
Santa Monica than anywhere else in LA, their rates are erratic,
their drivers are poorly paid and often nasty and they’re
polluting and clogging the city’s streets.
Those are among the key conclusions of a study for the City that helps chart
some solutions to a taxi cab market that has few regulations and where supply
seems to far exceed the demand.
“Unlike other cities, Santa Monica does not franchise taxicab operations
but, rather, permits any taxicab operator which meets insurance and other minimal
requirements to operate in the City,” Deputy City Manager Elaine Polachek
wrote in a recent report to the City Council.
“In Santa Monica, as in other cities with open-entry regulation, experience
has shown that market forces are not sufficient to ensure quality service and
an economically healthy taxicab industry.”
There were 412 permitted cabs in Santa Monica in October 2007, including 18
operated as one-cab companies by self-employed drivers and local entrepreneurs
and another 65 cabs operated in companies with two to five cabs, according to
a report commissioned by the City.
While Santa Monica has the most cabs per capita -- only West Hollywood has
more and they service neighboring cities as well -- and taxis charge higher
rates than in most cities, cab drivers are barely getting by, according to the
report.
“The large number of taxicabs limits drivers’ ability to earn a
living,” Polachek wrote. “Taxi drivers in Santa Monica are currently
making only about $24,000 per year working six days a week.”
Taxis are significantly underutilized and could easily carry more passengers
in an average shift, according to the staff report.
The free-for-all market has exacerbated Santa Monica’s traffic and parking
woes, resulted in a “wide and confusing range of fares” and spurred
passenger complaints about overcharging, according to the report.
It also has caused air pollution from old vehicles and vehicles cruising for
business, the report found.
Without a set franchise structure, it is hard to investigate complaints and
enforce rules, the report concluded.
Among the possible fixes proposed by staff -- limit the number of companies
and impose rules that lay out requirements for operating as a taxicab company,
set a maximum fare or one specific fare structure and set strict standards for
appearance and safety.
Other possible solutions include setting dispatching requirements that avoid
drivers having to rely on walk-up business and requiring drivers to take training
and pass tests.
The City also could require vehicles to meet air quality or fuel efficiency
standards, according to the report.
“No matter what overall approach to taxi regulation is used, it should
include minimum standards that apply to taxicab companies, as well
as standards that apply to vehicles and to drivers,” Polachek
wrote.
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