The Milwaukee Common Council voted unanimously today to eliminate the city’s cap on taxi cab permits.
Currently the city caps the number of taxi cab permits at 420.
The move will enable drivers for tech-based ride sharing services, like Uber and Lyft, to obtain permits to operate legally in the city.
They have been operating in violation of the law.
But despite the elimination of the taxi cab permit cap, Uber and Lyft opposed the new ordinance approved today because they want to operate without any permit or regulation, including background checks and vehicle inspections by the city.
“This measure has been written to protect special interests (the taxi lobby) and limit your access to safe, affordable and friendly ridesharing services,” said Startup Milwaukee in a blog post Monday in support of Uber and Lyft that encouraged other supporters to contact aldermen.
“Milwaukee residents have made it clear they want more transportation options,” Lyft said in a statement. “However, today’s action…introduces additional regulatory burdens that will make it more difficult for everyday Milwaukeeans to access the safe rides and economic opportunity that peer-to-peer transportation provides. We urge the City Council to continue the discussion surrounding the benefits of ridesharing and look forward to working with them to find a solution that puts the people of Milwaukee first.”
The ordinance states that the fee for each new taxi cab permit will be $284. The fee for renewal of each permit will be $209. Permits must be renewed every two years.
“While the ordinance passed today by the Milwaukee Common Council creates a general framework for rideshare services in Milwaukee, it also creates a barrier for would-be driver partners by requiring them to pay the highest up-front costs in the country,” Uber said in a statement. “Uber will work with the city to ensure continued access to affordable, reliable and expanded transportation services for Milwaukee residents.”
Cab drivers attending the meeting today cheered the Common Council vote. But the leaders of two businesses that provide dispatch services to Milwaukee taxicabs, Michael Sanfelippo, president of American United Taxicabs Services Inc., and Ali Homamed, president of Yellow Cab Cooperative Inc., expressed opposition to the ordinance in a statement issued Monday.
“When a market becomes flooded with taxicabs, taxi drivers avoid going into neighborhoods for grocery, medical and other shorter, less profitable trips and gravitate toward areas where they have a greater chance of getting longer, more expensive fares. Taxi stands at downtown hotels and other public venues become overcrowded and chaotic with taxis clogging traffic and drivers fighting over fares while the average Milwaukee neighborhood cannot get properly served. While this would translate into more revenue for us, history is crystal clear and has shown that too many taxicabs in a market translates into poor service for customers and an inability for drivers to earn a living wage,” Sanfelippo and Homamed said in the statement.
