Inclusion | Opportunity | Innovation

Taxis could be a platform for innovation

I previously wrote about the Council’s efforts to overhaul our taxi regulations to adapt to Uber. Earlier this year, the Maryland General Assembly passed legislation that allows Transportation Network Companies like Uber and Lyft to operate in Maryland and preempts local jurisdictions from regulating them. Over the past year, I have been working with the Council’s Transportation Committee, chaired by Roger Berliner, a group of taxi drivers represented by the AFL-CIO, transportation technology companies, the County’s taxi industry and MCDOT to adapt our taxi regulations to this new environment.

On July 28, the Council passed a landmark taxi reform bill, and I am very pleased that almost all of the reforms I advocated for were included. The key parts of the bill were:

  • Eliminating outdated regulatory burdens
  • Protecting taxi drivers from exploitation
  • Creating a groundbreaking new framework for taxi apps to use our taxi fleet as a platform for innovation (adapted from my Bill 55-14)
  • Providing 100 new taxi licenses, 50 of which will go to a new, driver-owned cooperative operating wheelchair accessible vehicles

I am very hopeful that these reforms will create a more balanced and high-performing taxi system in Montgomery County that works better for customers and drivers. Currently, customers must request a wheelchair accessible taxi days in advance. We hope to cut that down to minutes. Under the old system, taxi drivers were being exploited with high rents, no benefits, and long hours. With these reforms, driving a taxi will still be hard work, but there will be a more balanced relationship between drivers and companies. And with the formation of a driver-owned cooperative, drivers and customers will have more choices.

But of course, none of that matters if taxis cannot compete with Uber. That’s why I am especially excited about the development of a framework for universal taxi dispatch apps in the County. Under my proposal, which the Council adopted, companies can submit taxi dispatch apps to DOT, which will approve them as “universal dispatch apps” if they meet certain requirements. Drivers can choose among approved apps, but will be required to use at least one. The most important requirement is that each approved app must allow all other approved apps to see and dispatch their drivers through an open data feed, and must dispatch the drivers using other approved apps. This means that no matter which app a customer is using they will get sent the closest licensed cab, regardless of which company or app it is affiliated with.

Right now, the push toward universal dispatch apps is about catching up to the user experience and technology pioneered by Uber and Lyft. But over time, if other jurisdictions adopt this approach, taxis themselves could become a platform for fast-moving innovation. Any entrepreneur that can think up an idea and develop an app could have a nationwide fleet of regulated, safe vehicles and drivers at their disposal.

If you’d like to learn more about this idea, here is a White Paper I wrote to explain why I think this development is so important. The White Paper also includes model legislation that other jurisdictions can adapt to implement this approach.

Learn More about Bill 53-14 – Taxicabs:

– Staff Analysis prepared for Council action

Final text of Bill 53-14

White Paper on Universal Digital Dispatch

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