UTC 9.7.21 ATD Taxicab Franchise Backup — original pdf

Backup

Taxicab Industry Update – September 7, 2021 City of Austin Transportation Department Taxicab Franchise Operators Current Franchise Operators Franchise Closures During Pandemic ATX Co-Op Taxi Lone Star Cab (May 2020) Central City Taxi Longhorn Taxicab Co. (Dec. 2020) Yellow Cab Number of Taxicabs in Service 2019-2021 Three Year Comparison 1,016 245 220 FY 2018-2019 FY 2019-2020 FY 2020-2021 Current Taxicab Franchise Fleet Numbers ATX Co-Op Taxi 100 Taxicabs (93 Standard + 7 WCL) Central City Taxi 25 Taxicabs (21 Standard + 4 WCL) Yellow Cab 95 Taxicabs (87 Standard + 8 WCL) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Taxicab Number of Trips Five-Year Comparison: 2016 - 2021 3,078,481 1,814,306 1,000,207 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21* *As of 7/31/2021 466,841 197,012 • • • • • • Taxicab companies were first licensed in the City of Austin under an operating authority model on March 8th, 1932. On June 8th, 1950, taxicab companies were declared public utilities by City Council and formed into taxicab franchises by subsequent ordinance. Taxicab Companies reached their peak service in 2016-2017 with over 3 million trips and more than 1500 taxicabs deployed within the City. In 2017, Transportation Network Companies (TNCs) such as Uber and Lyft began operating in Austin under state regulatory authority and taxicab franchises experienced an eventual seventy-five percent decline in their number of trips the following year. Council In 2018, reform recommendations, intended to address this decline, lighten franchise restrictions, and level the playing field between taxicabs and other transportation options. taxicab franchise approved ATD’s regulatory In 2020-2021, due to the global pandemic, taxicab franchises have now experienced the lowest trip numbers on record. ATD recommends that taxicab companies no longer be regarded as public utilities, but rather as a valuable part of a diverse and ever-evolving network of competitive mobility options and that Council transition taxicabs from a franchise licensing model to an operating authority licensing model. The benefits of licensing taxicab companies under an operating authority model versus a franchise model are demonstrated in the figure below: Franchise Model Operating Authority Model Application takes more than 30 days to complete Application can be completed in one business day Requires Council action for approval, renewal, or transfer Approval, renewal, or transfer based on established prerequisite criteria Three-readings franchise approval processes may take 3 to 6 months Approval granted within 2 business days upon the fulfillment of established prerequisite criteria Rigid application timeframes and deadlines Flexible application timeframes and deadlines Difficult to scale vehicle fleets to demand Easy to scale vehicle fleets to demand Inability to cease and resume operations when necessary Ability to cease and resume operations at will Limited driver autonomy and choice Greater driver autonomy and choice Unique vehicle-for-hire Category, unlike any others permitted in Austin Does not align with taxicab permitting programs in other Texas cities Aligns with all other vehicle-for-hire permitted services in Austin Aligns with taxicab permitting programs in other Texas cities ATD respectfully requests that the Urban Transportation Commission provide their recommendation to City Council on transitioning taxicabs from a franchise model to an operating authority model. • • • • • On August 5, 2021, WHC ATX LLC., d.b.a. zTrip, purchased the Greater Austin Transportation Company (GATC), d.b.a. Yellow Cab, including all its assets. zTrip has applied for a transfer of the taxicab franchise license from Yellow Cab to zTrip in accordance with § 13-2-403 of City Code and Yellow Cab has provided a notarized letter of intent to transfer the franchise license to zTrip. The Mobility Services Division of the Austin Transportation Department has reviewed the application and letter of intent to transfer and has found its contents compliant with the applicable sections of Chapter 13-2 of City Code. ATD recommends the transfer of the Yellow Cab taxicab franchise license to zTrip. ATD respectfully requests that the Urban Transportation Commission provide their recommendation to City Council on this transfer. Taxicab Industry Update – September 7, 2021 City of Austin Transportation Department