The city's taxi industry says they're both shocked and appalled by the mayor's proposal to license livery vehicles to pick up passengers on street corners.
New York City Mayor Michael R. Bloomberg today unveiled a proposal to allow certain livery vehicles to cruise outer borough streets for fares. Currently car service vehicles are only allowed to take dispatch trips, which the mayor says means the 80 percent of residents who live outside Manhattan have no means of spontaneous transportation.
But advocates for yellow taxi drivers say that the mayor doesn't understand the industry and the proposal would hurt drivers.
"In these tough economic times our drivers need every fare they can get -- they shouldn't be competing for fares," said Michael Woloz, a spokesman for the Metropolitan Taxi Board of Trade. "As far as I know there are no taxi drivers working inside City Hall -- there needs to be a dialogue with the yellow cab and for-hire vehicle industry on ways we can work together to better meet the needs of all New Yorkers."
The Taxi and Limousine Commission says that 97.5 percent of yellow taxi trips begin within the Manhattan central business district and the goal of the program is to provide on-demand service to residents who live outside that area. A TLC official says that there would be no competition because the livery vehicles would be prohibited from picking up fares in Manhattan.
But that's little comfort to those who have spent $1 million for a medallion that they say was supposed to grant them the "exclusive rights" to pick up street hails in the city.
"People put second mortgages on their homes just be able go out and buy medallions with the understanding that they would have exclusive rights to street hails," said Ethan Gerber, the executive director of the Greater New York Taxi Alliance. "To take this away would legitimize illegal activity and severely injure the city's credibility."
Gerber argues that the TLC needs to better enforce the existing rules that prohibit cruising by livery vehicles.
"Taxi drivers congregate where they know that they can get fares," Gerber said. "They know that in many areas illegal liveries dominate the field so they won't go there."
He called on the city to actively seize vehicle caught illegally operating as livery vehicles and to crack down on enforcement of the violation, rather than to legalize it.
Both Gerber and Woloz expressed a willingness to work with the TLC to come up with a better way to serve the outer boroughs.
"I think that there's a genuine desire on the part of the industry -- both the yellow cab and livery industry to work with the TLC," said Woloz.
Woloz says that Staten Island, a place that yellow cabs try desperately to avoid going has organized a very successful livery stand at the ferry terminal and projects like that are the answer. The TLC says the stand on Staten Island is a huge success, dispatching more than 300 rides a day.
The proposal would require City Council approval and today the Chairman of the City Council Committee on Transportation gave the mayor's proposal mixed reviews. Gerber says that he doesn't think a bill would pass the City Council, but even if it did there would likely be legal challenges.
"There are many legal problems with what the mayor is proposing to do," said Gerber.
Currently it is illegal for any vehicle other than a yellow cab to pick up street hails, although the city acknowledges it is done all the time. Violators face stiff fines and can even have their vehicles taken away.
"I think that everyone can agree with the generic idea that better service is needed in the outer boroughs," said Councilman James Vacca (D - Bronx). "We don't yet have a bill or details, but already there are concerns from not just the industry but local community boards and car service bases. The devil will be in the details."
TLC Chairman David Yassky said he hopes to move forward with the program in the coming months.
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Contact Michael A. Harris at mharris@examinerny.com
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