Drivers flood Mpls. City Hall for Lyft, UberX oversight hearing
| By Eric Roper, Star Tribune (Minneapolis) | |
| McClatchy-Tribune Information Services |
The debate highlights the intense competition between the growing number of traditional cabs and Lyft and UberX, the two smartphone-based companies now operating illegally while the city hashes out how to regulate them.
The main issue is whether Lyft and
Lyft and
"I have now built relationships with many of the drivers in the Lyft community," said Lyft customer
The debate mirrors one happening in cities across the country, where Lyft and UberX have run up against regulators more used to dealing with traditional cabs.
The proposed rules would legalize Lyft and
The taxi industry contended that the proposed ordinance sets up a two-tier regulation that heavily benefits Lyft and
A side-by-side comparison of the regulations drawn up by the taxi industry's lobbyists notes that taxi drivers can only charge the city-specified meter rate, while Lyft and
"They're cab drivers,"
They are seeking a solution similar to what occurred in
But in
Cabs have higher costs
The threats posed by new, unregulated competitors like Lyft and
And the cost of doing business as a cab isn't cheap. Drivers who own their taxis must pay
Companies like Blue and White Taxi are seeing fewer fares from street hails than they once were, and Sonbol said the flood of cabs has made drivers increasingly desperate for larger fares. Accounts with insurance companies and businesses help offset street hail revenues. "These accounts [are] really what helps keep them going," Sonbol said in an interview.
Under the proposed ordinance, Lyft and
Testifiers raised questions Tuesday about precisely how "active" drivers would be determined for insurance purposes, however. That same question arose earlier this year in
Supporters of the services note that extra options help people rethink transportation.
"As the people of
Technology hasn't passed over the taxi industry, however. Based in a posh Northeast office complex with an Internet start-up vibe, Blue and White Taxi is linked to two smartphone apps, including the Lyft-like app Taxi Magic, and are in the testing phase of a third. Like Lyft, Taxi Magic pinpoints a user's location and allows them to watch a car en route to pick them up.
"I like automated systems, because I feel it allows my staff to do more stuff," Sonbol said of the app-based dispatch, which is automated. "It allows them to spend more time on the customer service side."
Blue and White's cars, which are almost entirely driver-owned, are also outfitted with back seat consoles that allow for easy credit card swiping. Cabs have been required to take credit cards since 2012.
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