Changes to ‘Transportation for Hire’ Ordinance could save taxi companies 95% in fees

El Paso City Council members took Uber’s threat to leave the city seriously. The ride-sharing company promised to pull out of the Sun City if representatives required traditional cab companies and Uber to operate under the same rules.

Taxi cab drivers worried companies like Uber would put them out of business. They argued for more regulation of the ride-sharing company but city representatives decided to try another route.

The latest amendments to the Taxi Cab Ordinance would ease regulations and cut fees up to 95 percent.

The ordinance is now called the Transportation for Hire Ordinance. City Council members will hear the first reading of the ordinance Tuesday. It requires all businesses have an operating authority permit and drivers pass a background check.

The big changes though would come in fees. Twenty-six would be deleted. For example, a taxi company with 60 permitted vehicles currently pays around $17,040 dollars in fees. The proposed fees would be $175. That’s a reduction of 98 percent.
A limousine service with 20 permitted vehicles currently pays $3,720 in fees. The proposed cost is $175, a reduction of 95 percent.

El Paso Asst. Police Chief Michelle Gardner explained some of the changes.

“The difference between the ordinance and the proposed ordinance is the regulations have been stripped down considerably. Fees have been deleted so they are more streamlined, easier for everybody to follow and they apply to everybody equally as far as the public safety standpoint,” said Gardner.

Fingerprints would no longer be required of drivers. That’s a Joe Olivar, the owner of Border Cab Taxi, argues could put passengers at risk.

“We’ve done it here for our people for the last 40 years. All of a sudden, the viewpoint is it’s not necessary. Well, why is it not necessary? Let’s cut through the chase. Because one company that has come into our city, that has already been working here illegally for the last two years, did not want to accept that. And the city just caved in, plain and simple,” Olivar said.

Regulations would also be loosened. Drivers would no longer be required to have a medical certification and outdated two-way radios. City vehicle inspections would be eliminated and driver and vehicle permits would not be required.
The age limit on vehicles would also be removed.

The ordinance would also require companies provide wheelchair-accessible vehicles upon request. That means Uber would have to have an agreement with a cab company to pick up a client if they did not have a vehicle available.

Taxi drivers argued Uber should be regulated like other transportation companies. But Uber contends it’s not a taxi service — rather an app that puts passengers in touch with drivers. At least one local taxi company is now developing an app of its own.

A public hearing will be held Aug. 9 on the issue.