Two weeks ago, New York City auctioned taxi medallions for the first time in six years. The 297 winning bids ranged from $805,201 to $965,000.
Similar to New York City, Atlanta has withheld the release of its remaining medallions out of concern for an overabundance of taxis. If you have ever tried to catch a cab in Atlanta, you would realize the irony of that reasoning.
Uber and Lyft utilize smartphones to make the pickup process faster. Uber contracts with both commercially licensed drivers and non-commercial drivers (including myself) to transport its users, while Lyft, the company with the iconic pink mustache displayed on the grille of its drivers’ cars, relies entirely on non-commercial drivers.
Of course, the taxi lobby is not too thrilled about Uber and Lyft’s meteoric rise. Taxi lobbies across the country, including Georgia, have decided a) they can beat Uber and Lyft and/or b) they cannot beat Uber and Lyft, but will fight them anyway.
Their first attempt to stop Uber and Lyft in Georgia was House Bill 907, which sought to regulate “transportation referral service providers.” Although the bill did not pass out of the House on Crossover Day last week, HB 907 won’t be the lobby’s last attempt to stop Uber and Lyft.
To clarify, “taxi lobby” means taxi companies, not drivers. Taxi drivers do not want to pay $65,000 — apparently the going rate in Atlanta — for a medallion.
I understand the frustration from taxi companies. Rick Hewatt is a third-generation CEO of Atlanta Checker Cab. But his anger, voiced previously on the AJC opinion page, is highly misplaced. Using a transportation referral service provider is no different from using Facebook to find a ride home during Atlanta’s snowpocalypse. Certainly, Facebook users do not need a medallion to pick up someone with his or her consent.
I have served as both an Uber passenger and driver, so I know the argument that transportation referral service providers are unsafe is ill-conceived. In addition to background checks, these companies have a rating system that holds passengers and drivers accountable. Further, Uber and Lyft passengers have the name and mobile phone number of their driver, and vice versa. Consequently, there is greater incentive for driver/passenger interaction. My first passenger? The daughter of a state legislator.
Legislation such as HB 907 is counterproductive to Georgia’s rise as a hub for transportation reform. In addition to Georgia being fourth in electric-vehicle adoption, Atlanta is home to AT&T’s Drive Studio for connected car research and Panasonic’s Innovation Center.
Let’s face it: Uber and Lyft are here to stay. Rather than inhibiting people’s ability to make money on the side or receive efficient, safe transportation, taxi companies should focus on repealing laws that require costly medallions if they want any chance at survival.
A. Jarrod Jenkins is an Atlanta lawyer.
