Professional Documents
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David Yassky TO: Mayor Bloomberg
Commissioner
TLCCommissioner@tlc.nyc.gov
FROM: David Yassky
40 Rector Street, 5th Floor
New York, NY 10006
Stephen Goldsmith
+1 212 676 1003 tel RE: Five‐Borough Taxi Plan
+1 212 676 1100 fax
Summary: The Taxi and Limousine Commission has been working together
with the Department of Transportation and the Office of Long‐Term Planning
and Sustainability on a proposal to allow livery cars to pick up “street‐hail”
passengers outside Manhattan, with the goal of improving mobility for
residents of Brooklyn, the Bronx, Queens, and Staten Island. We are now ready
to recommend moving forward with this proposal, which would require local
legislation.
TLC data show that yellow taxis virtually never cruise for passengers outside
Manhattan, yet there is considerable demand for street‐hail service in the
other boroughs. Today, this demand is met illegally by a mix of licensed livery
cars (which under current rules can transport passengers only by
prearrangement) and wholly unlicensed vehicles. We propose allowing
licensed livery vehicles to accept street hails, provided they have uniform and
recognizable markings (including, possibly, a uniform color), and are equipped
with meters, credit card readers and GPS locators. To be clear, we propose no
changes to the rules governing dial‐a‐car service, and we expect that the bulk of
trips outside Manhattan will continue to be provided through prearrangement
– in most residential neighborhoods, the street hail model just doesn’t make
sense.
We believe this citywide taxi plan would advance the Administration’s broader
sustainability agenda, by making it easier for people to live in New York City
without owning a car, and that it reflects both the Administration’s five‐
borough approach and its core commitment to harnessing the power of market
forces to improve New Yorkers’ quality of life.
Data on Street Hails in the Boroughs: TLC data shows two key facts about the
market for taxi service outside Manhattan. First, yellow cabs are virtually
absent; 97.5% of yellow taxi trips originate in Manhattan or at the airports,
even though 80% of New Yorkers live in the other four boroughs. Second,
there is demand for street‐hail taxi service outside Manhattan, and this
demand is being met by livery cars and unlicensed cars that pick up passengers
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illicitly. TLC field teams have observed a high volume of illicit street hails – as
many as one per minute at peak periods – at subway stations, shopping
centers, and other locations throughout Brooklyn, the Bronx, Queens and
Staten Island.
Benefits of Legalizing Street Hails Citywide: We believe that legalizing and
regulating the street‐hail taxi market outside Manhattan would increase
mobility for borough residents by enabling a service that many passengers will
find more attractive than the existing option of illegal service:
• Passenger safety and security: Clearly marked cars would enable
passengers to distinguish between licensed and unlicensed vehicles, and to feel
confident that they are entering a vehicle that has been inspected for safety,
that carries insurance coverage appropriate to taxi use, and that is driven by a
licensed driver, just as with yellow taxis. In addition, we would require the
borough taxis to have GPS locators, just as the yellow taxis do, to enable data‐
driven enforcement. The ability of the government to enforce rules gives
consumers greater confidence in the system. (GPS locators would also enable
the TLC to help passengers recover lost property.)
• Certainty of price: In the illicit market, fares are variable and haggling is
common. This makes some passengers uncomfortable, depresses demand, and
disadvantages visitors unfamiliar with the system. We would require borough
taxis to have meters, just as yellow taxis do.
• Credit cards: The introduction of credit card readers into yellow taxis has
been hugely successful – more than 40% of passengers pay with credit cards
today, and that percentage is increasing steadily. We would require borough
taxis to accept credit cards, just as yellow taxis do. The precise fare structure
would be assessed and established by the TLC, as is the case with current taxi
fares.
• Legality: While many New Yorkers do hail livery cars on the street today,
making the practice legal would open the market to those who are deterred by
its illegality.
• Driver safety: We also believe this plan would increase safety for livery
drivers, because it would legitimize a market that is now largely illicit and
because introducing credit card readers would reduce the amount of cash
drivers routinely carry.
In short, allowing "yellow‐caliber" livery cars to accept street‐hails outside
Manhattan would both increase mobility options for borough residents and
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improve the quality of service for those who now participate in the
underground market. A robust and healthy taxi market outside Manhattan
would be of particular benefit to the many New Yorkers who don’t own
cars, and would also strengthen retail and business centers in the
boroughs.
Need for Council Approval and Increased Enforcement: Implementing this
five‐borough taxi plan will require authorizing City Council legislation. It
will also require additional enforcement resources to prevent unlicensed
vehicles from poaching business from the new borough taxis. The TLC’s
current staffing would not allow for this increased level of enforcement.
We anticipate that the additional personnel necessary for citywide
enforcement would be supported by license revenue from the new
borough taxis.