A bill making it easier for new taxi companies to start operating in Denver passed a House committee today over the objections of existing cab companies, which said it would hurt service.
House Bill 1227, sponsored by Rep. Alice Madden, D-Boulder, and Sen. Abel Tapia , D-Pueblo, would lower the burden on startup taxicab companies, requiring them only to show that they are “operationally and financially fit” to provide service.
The taxi proposal is part of an overall bill dealing with Public Utilities Commission regulations.
Current law requires a new taxicab operator to show that existing service is inadequate. The bill, meanwhile, would flip that burden, requiring existing cab companies to prove that new competition would be detrimental to the public’s interest.
Denver only has three cab companies — Metro Taxi, Freedom Cab and Yellow Cab — which together operate about 950 cabs. Independent drivers, who pay fees to operate under one of the three companies’ labels, say the current system only benefits the big operators, not consumers.
Other critics of Denver’s current taxi system say it does not serve the disabled well enough and that competition is needed, especially given the upcoming Democratic National Convention in August.
Existing taxi companies have argued that allowing a flood of independent cabbies would mean poorer service because many of the disgruntled drivers just want lucrative long-distance fares and won’t take those who need short trips.
Dozens of African immigrants who work as cab drivers crowded a basement hearing room in the Capitol today as the House Transportation and Energy Committee considered the bill.
Abdi Buni, president of Pro Taxi, a union that represents more than 500 drivers, said the legislation would level the playing field, “giving the small business owner a fighting chance” to compete with the big taxi companies.
Buni said the industry still would be regulated by the Public Utilities Commission.
Denver city officials have said they may propose new rules requiring drivers to speak better English and keep cleaner cabs if the state loosens regulations on the industry.
Kyle Brown , general manager of Metro Taxi, said the bill would make a dramatic change to existing cab regulations just as studies of the industry are underway.
The Public Utilities Commission also is conducting an audit of the existing cab companies.
“What would be the harm in waiting for the outcome of the audit and the studies?” Brown asked.
Rep. Alice Borodkin, D-Denver, made the same point.
“I have a hard time making a recommendation when we don’t have all the facts,” Borodkin said.
Borodkin attempted to delete the taxi-cab language in the bill, but the move was defeated on a 3-9 vote.
The committee then approved the bill on an 8-4 vote, allowing it to move to the full House.
Tim Hoover: 303-954-1626 or thoover@denverpost.com
