LOS ANGELES (Reuters) - Taxi drivers in Los Angeles will be required to use an Uber-style app allowing riders to hail cabs from mobile phones, city officials decided on Thursday, in a move to help licensed taxis compete against ride-sharing services.
The so-called "e-hail" app requirement is the latest response to the shockwaves sent through the taxi industry by the growing popularity of ride-sharing services like Uber, Lyft and Sidecar that often have cheaper fares and more efficient customer service.
“It’s probably not going to be a panacea but it’s going to improve things,” said Los Angeles Board of Taxicab Commissioners President Eric Spiegelman. “At the very least, it’s a gigantic first step.”
Los Angeles cab companies, which operate 2,300 licensed taxis, reported a 21 percent drop in rides last year and complain that they are bound by regulations on issues such as safety and fare structure that do not apply to ride-share companies.
A taxi app could be particularly popular in Los Angeles, where it can be difficult to hail a cab from the street. Except at Los Angeles International Airport or major hotels, riders usually must call a dispatcher and often face long waits.
In a vote on Thursday, the five-member Board of Taxicab Commissioners opted to begin an app program on Aug. 20 and could impose immediate fines of $200 a day on drivers who do not use an “e-hail" app.
But some details remain to be worked out, including whether to include flexible fares instead of current fixed rates, whether to build a new app or use an existing one, and whether to use one or multiple apps for different companies. Certain fare structure changes would also require Los Angeles City Council approval.
Cab company representatives voiced no opposition to the app concept at the board meeting, but asked to be included in a working group that will make recommendations on app features.
“We’re not against it,” said Jano Baghdanian, general manager of MTS Management Inc, which operates several cab services in Los Angeles. “It’s just the practical question of how does that make it a change, how does that make it a level playing field?”
While popular for its ease of use, Uber has faced scrutiny in the United States and other countries because of concerns over passenger safety. The district attorneys of San Francisco and Los Angeles said last month they had filed a lawsuit against Uber for misleading customers about its background checks on drivers.
(Editing by Cynthia Johnston)
Support HuffPost
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
At HuffPost, we believe that everyone needs high-quality journalism, but we understand that not everyone can afford to pay for expensive news subscriptions. That is why we are committed to providing deeply reported, carefully fact-checked news that is freely accessible to everyone.
Whether you come to HuffPost for updates on the 2024 presidential race, hard-hitting investigations into critical issues facing our country today, or trending stories that make you laugh, we appreciate you. The truth is, news costs money to produce, and we are proud that we have never put our stories behind an expensive paywall.
Would you join us to help keep our stories free for all? Your contribution of as little as $2 will go a long way.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you’ll consider contributing to HuffPost once more.
Already contributed? Log in to hide these messages.
