Taxicab drivers can now negotiate ride fares in the city after the Little Rock Board of Directors approved an ordinance Tuesday that does away with board approval of taxicab rates.
Little Rock Yellow Cab -- the only taxi company in the city -- can now change its rates with 48 hours' notice to the city manager and Fleet Services department, whereas before, rates were set by city ordinance and changes had to be approved by the board.
Yellow Cab owner Ellis Houston said Tuesday's rule change will now let him be more competitive with Uber -- the smartphone app company that moved into the city last month and connects passengers with for-hire drivers who use their own vehicles to offer rides.
The city board approved regulations governing Uber and similar companies late last month. The board then asked Houston whether there was any change to the city's transportation code that would level the playing field for his company.
Houston said taxicab customers don't have to worry about a fare increase anytime soon because with competition in town, his drivers will aim to reduce rates to compete. Before, taxi drivers couldn't lower the advertised meter rate. Now they can lower it at will and increase it with 48 hours' notice.
Little Rock Yellow Cab is also promoting its own smartphone app this week in an effort to compete with Uber.
The app, Taxi Hail, can be downloaded at yellowcablr.com. It's been available for months, but the company is just now promoting it. It works similar to Uber. A passenger can request a ride through the app, and the nearest cab driver's name and car number will appear on a real-time tracking map.
Drivers can message customers to inform them of the estimated arrival time. Customers can also pay through the app with their credit cards, though Houston noted that riders don't have to submit credit card information and can pay in cash if they choose.
Current Little Rock taxi fares are $3 on first getting into the cab and an additional 25 cents for every one-eighth 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.
Houston's drivers can already negotiate ride fares that end outside city limits, he said.
Metro on 12/17/2014