A bill making it easier for new taxi companies to operate in Denver passed a House committee Thursday over the objections of existing cab firms that said it would hurt service.
Dozens of African immigrants who work as cabdrivers crammed into a basement hearing room in the Capitol to weigh in on House Bill 1227, which would lower the burden on startup taxicab companies, requiring them only to show that they are “operationally and financially fit” to provide service.
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 big companies.
Kyle Brown, general manager of Metro Taxi, said the bill would make a dramatic change to existing 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.
The taxi proposal is part of a bill sponsored by Rep. Alice Madden, D-Boulder, and Sen. Abel Tapia, D-Pueblo, dealing with PUC regulations.
Current law requires a new taxicab operator to show that existing service is inadequate. The bill would flip that burden, requiring existing cab companies to prove the new competition would be detrimental to public interest.
Denver 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 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.
The committee 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
