LR proposal lets cabdrivers deal

Ordinance would give taxis flexibility to compete with Uber

Taxicab fares in Little Rock will get more competitive if the Little Rock Board of Directors approves an ordinance tonight that would allow drivers to negotiate rates, according to Little Rock Yellow Cabs owner Ellis Houston.

After Uber -- a smartphone app company that connects passengers with for-hire drivers who use their own vehicles -- moved into the city in early November, city directors asked Houston if there were any changes to Little Rock's transportation code that could level the playing field for his taxi company. The board passed regulations governing Uber and similar companies at the end of November.

"Right now, we are made to charge exactly what is on the meter if the ride starts and ends in Little Rock. This would allow us to charge less than the meter rate when we need to to be competitive," Houston said.

Taxicab fares are set by city ordinance now. City Attorney Tom Carpenter said tonight's ordinance would allow the company to set its own fares without seeking board approval.

The current Little Rock taxi fares are: $3 on first getting into the cab and an additional 25 cents for every 1/8 of a mile -- or $2 per mile. There's an extra $2 fee per additional passenger and a $2 charge for airport pickup. Uber's rates vary but are typically lower than taxis. The company implements surge pricing in times of high demand and low supply.

The taxi ordinance up for discussion tonight would allow Little Rock Yellow Cabs -- the only taxicab company in the city -- to change its rates with 48 hours' notice to the city manager and the city's Fleet Services Department. Houston currently has to go before the Board of Directors and get a rate change approved before an increase or decrease in fares takes effect.

"They've given Uber flexibility to charge whatever they want to, without getting any board approval," Houston said. "This would allow it so we have flexibility."

He said customers don't have to worry about rate increases any time soon because he has none planned. The ordinance would let cabdrivers charge less than the meter rate, Houston said. He added that his drivers can already negotiate prices if a trip ends out of the city.

He gave a recent example of one of his drivers picking up a passenger at Bill and Hillary Clinton National Airport/Adams Field who wanted to go to Conway. The driver said the fare would be $76, but the passenger countered that Uber would charge only $62. The cabdriver ended up taking the passenger for $60. Without the ability to negotiate, the driver likely wouldn't have gotten the ride, Houston said.

"We have absolutely no intention of raising any rates -- other than possibly incorporating a traffic delay charge -- especially with competition coming in town already charging less than what we are charging. Increasing rates wouldn't be a good business move," Houston said.

A traffic delay charge is when the meter continues to charge a certain amount when the cabdriver is stuck in traffic or at a red light. It's a common practice in the taxi industry, but right now Little Rock taxis aren't allowed to charge when the vehicle isn't moving. There's no mention of the fee in the ordinance to be voted on tonight.

The board meets at 6 p.m. at City Hall.

Metro on 12/16/2014

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