Now that it has lost its political battle with Uber in the Legislature, the Metropolitan Taxicab Commission is facing another challenge.
The agency may relax some of its rules and fees for taxi companies in St. Louis and St. Louis County to make the cabs more competitive with app-based Uber, Lyft and similar ride-hailing companies.
However, commission chairman Tom Reeves points out, the agency must balance that with its responsibility to protect people using taxis “both in terms of the vehicles the public is riding in and the drivers driving them.”
“This is almost a Catch-22 here,” Reeves said at a commission meeting Thursday.
The Legislature earlier this month passed a bill exempting the ride-hailing companies — formally called transportation network companies — from regulation by the taxi commission and other local governments across Missouri. State law would still require the commission to regulate the local taxi industry.
Gov. Eric Greitens plans to sign the bill Monday.
The commission will hold a special meeting sometime in the next two weeks to get proposals for rule changes from cab companies large and small and their drivers.
Reducing periodic inspection and licensing fees, changing insurance and inspection requirements and modifying rules for drivers’ clothing might be among items up for discussion.
Allowing cab companies to set different rates for higher-demand periods could be another idea. The commission now sets a cap on cab charges.
Another issue is whether to retain a requirement that taxi drivers submit to fingerprint background checks — something ride-hailing drivers wouldn’t have to do under the pending state law.
Responding to cab companies’ concerns that they would be at a disadvantage, the bill passed by the Legislature also would repeal an existing state provision ordering the local commission to require taxi driver fingerprint checks.
Reeves noted that the commission could decide on its own to keep the fingerprint rule. “It allows this commission to make that determination,” he said of the state bill.
Reeves said he personally believes a fingerprint check is a good thing but wouldn’t say whether he thinks the commission should eliminate or retain it. “I’m going to facilitate the discussion,” he said.
The state bill also would require ride-hailing drivers, like taxi drivers, to pay the city earnings tax and the $4 pickup fee at St. Louis Lambert International Airport.
Although the new state law wouldn’t go into effect until Aug. 28, cab companies in the city and county already have been losing business to Uber.
That’s because Uber began operating here in 2015 despite failing to follow taxi commission requirements that its drivers be fingerprinted and have a state chauffeur’s license. The new state law would allow Uber to conduct its own background checks, which Uber says are thorough.
Uber, whose drivers use their own cars to carry passengers, also sued the commission, accusing it of anti-competitive practices; the commission then sued Uber.
“We’ve all been dying for two years now,” John Long, chief executive officer of ABC/Checker Cab, told the commission Thursday. “My fleet’s down to 30 cars from 80.”
Long urged the commission to make any changes “immediately.” Reeves said, “This is an organized process but it will be fast.”
Meanwhile, Edward Shanayev, who owns Chesterfield Taxi and Car Service, said he’s found it hard to keep drivers from switching to Uber because by doing so they stop paying commission license fees. He says his company has about 30 cars on the street, down from around 40 two years ago.
Reeves added that the commission would consult the offices of County Executive Steve Stenger and St. Louis Mayor Lyda Krewson on the possible changes. (The executive and mayor appoint the commissioners; the current city members are holdover picks of former Mayor Francis Slay.)
Reeves also wants input from the regional Convention and Visitors Commission and others in the hospitality industry.
Reeves said the taxi commission’s review of its code would be accompanied by one of its own finances. The commission gets no government money and is funded by taxi fees.
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