Taxicabs in the United States are the sole.remaining unsubsidized form of urban transportation. An important form of transportation, taxicabs provide around-the-clock service in virtually every city, town, even many villages. As an industry, taxicabs provide approximately one-third as many trips as do all the bus systems in the United States and carry about three-fourths as many passengers as do all the urban rail systems. The taxicab industry is unique in that it is - with few exceptions - regulated entirely at the local level. Except for a few states, all other states pass on to cities the responsibilities for regulating this ubiquitous industry. The result is that here are as many taxicab regulatory approaches utilized by local governments. Taxicab regulations have a direct effect on the quality and quantity of local taxicab services, and taxicab services in US cities reflect the variety of taxicab regulatory approaches. Particularly with respect to the two most important types of regulatory controls - entry restrictions and fare-setting - cities follow widely different policies ranging from almost total lack of controls to tight restrictions on both entry and prices. This paper reports on the findings of a national study of local taxicab regulations in the United States. A research team at the University of North Carolina conducted a survey of 120 cities selected in a national sample stratified by population. This survey was followed by twelve case studies of cities with innovative approaches to taxicab regulations. The research focuses on three aspects of regulation: entry controls; price setting; and enforcement and administration. The results show how cities are approaching this regulatory challenge and how they are changing their regulatory approaches in an effort to find better ways to regulate the industry as part of a comprehensive approach to local transportation services.
Abstract