Mayor Hales, Novick Propose 120-Day Pilot Program for Uber, Lyft and Taxis

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Friday, April 17, 2015

GoLocalPX News Team

Today Mayor Charlie Hales and Commissioner Steve Novick proposed a 120-day pilot program that will allow for-hire transportation companies such as Uber and Lyft to operate in Portland. Hales and Novick believe the program will ensure fair competition between all private for-hire operators including the city's taxi companies. 

The proposal builds on recommendations by the Private for Hire Innovation Task Force, which Novick appointed in December to examine the issue and figrure out how to modernize the city's regulations. According to the city, evolving consumer interests, population growth and a booming tourism industry have generated more demand for taxis and other for-hire transportation service.

Under the new proposal, the City would lift the cap on taxi fares, so taxis and other Transportation Network Companies (TNCs) could both set their own fares without city regulation. Both taxis and TNCs would be required to provide service to people with disabilities, provide service 24 hours a day/seven days a week and certify that their drivers have passed City-approved background checks. 

“This is a historic deal,” said Mayor Hales. “We were able to move from confrontation to collaboration, with an open process and tough negotiations that have come up with a result that will improve our transportation system and creates a real win for consumers.”

“The existing taxi companies have had two lines of argument against the pilot. One is, simply, that they should be protected from competition in order to ensure a living wage for drivers and good service for people with disabilities. Given that our best information is that the average net hourly income of Portland taxi drivers is $6.22 an hour, and given the complaints people in the disability community have about taxi service, we are not entirely persuaded by that argument,” said Commissioner Novick, who oversees the Portland Bureau of Transportation. “But the other line of argument is that any competition needs to be fair competition. We agree with that, and in order to ensure fair competition, the proposed framework makes some changes to the task force’s recommendations – and underscores certain features of those recommendations that might not have been well understood.”

Portland City Council is scheduled to conduct a public hearing and vote on the resolution by Hales and Novick at 5pm, Tuesday, April 21. The hearing will be held at City Council Chambers, Portland City Hall, 1221 SW Fourth Ave.

Today, the city released the framework for the proposed pilot program:

● The rules for fares will be the same for TNCs and taxis: The City will lift the cap on fares and, as always, have no minimum fare.

● Background check requirements for taxis and TNCs will be the same. Both can use City-approved third-party background check providers and the City will audit random samples to enforce compliance.

● Taxis and TNCs will implement service performance measures to ensure timely service for people with disabilities.

● The TNC companies will not be allowed to pick up passengers until permits have been certified.

● Taxis and TNCs will both be required to offer 24/7 service. Neither will be allowed to reject trip requests based on the shortness or length of the journey.

● The City prohibits disclaimers of liability for negligence or other tortious conduct contained in Terms of Service and requires that all tort claims be governed by tort law in effect at the time of a claim.

The Task Force is recommending a two-phase approach, which still guides City action. Phase 1 includes a 120-day TNC pilot program, during which time market data will be collected and analyzed. During Phase 2, the Task Force will assess the market data and solicit public input that will inform recommendations for an overhaul to all of the City’s PFHT rules. The Task Force’s final report is expected this summer and will include recommendations for all modes of for-hire transportation, including taxicabs, TNCs, accessible for-hire transportation service, Limited Passenger Transportation companies, pedicabs and shuttles, according to the city. 

“This task force did the City an incredible service by tackling these tough issues in a very tight timeframe,” said Mayor Hales.

“Thanks to the task force, the City Council can rest assured that our pilot program has been thoroughly vetted,” said Commissioner Novick. “The task force did groundbreaking work, and I look forward to their report this summer on broader for-hire transportation issues.”

Click HERE for more information and to read the full proposed pilot program. 

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