2015 Taxicab Rate Review: Staff Recommendation Transportation Advisory Commission August 18, 2015 Susan Hafeli Department of Cable and Consumer Services.

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Presentation transcript:

2015 Taxicab Rate Review: Staff Recommendation Transportation Advisory Commission August 18, 2015 Susan Hafeli Department of Cable and Consumer Services

Staff Recommendation Staff recommends no change in rates in 2015 Keep initial charge (drop fee) at $3.50 Keep per-mile charge at $2.16 ($0.36 per 1/6th mile) 2

Taxicab Industry in Fairfax County Industry provides both on-demand and contract transportation services Current fleet information: Five authorized operators (companies) 654 taxicab certificates 45 wheelchair-accessible certificates Code requirement of 4% WAC taxis (= 26 cabs) Over 770 licensed drivers 3

Taxicab Rates DCCS conducts annual rate reviews Fairfax County Code governs taxi rate changes Code allows for rate change petitions – but none filed in 2015 A rate change requires public hearings before both Consumer Protection Commission and Board of Supervisors Code standard for assessing whether a rate change is warranted: change in taxicab price index since last adoption of rates, plus or minus two percent 4

Fairfax County Taxicab Price Index Section 84.1-6-2(d) 5

FCTIPI Weighted Change November 2014 – June 2015 6

Evaluation Factors County Code: change in FCTIPI since rates last adopted, plus or minus 2% FCTIPI result = 0.5% Adjustment of + 2% = range of -1.5% to 2.5% Other factors considered Trends in gasoline prices Driver licensing rates Regional taxicab rate comparison Competition from TNCs 7

Gasoline Price Trends: 2012-2015 8

Driver Licensing Rates Continuing interest in taxi driver (hack) licenses, despite FY2015 decline in both new licenses and renewals 9

Regional Regulated Rate Comparison 10

Competition from TNCs Virginia established regulatory framework for TNCs in 2015 No local oversight of TNCs TNCs enjoy pricing flexibility that regulated companies do not “Surge pricing” helps balance supply and demand Data regarding TNC impact on regulated taxi companies not available 11

Comparison: Taxi vs. Uber Options Notes about Fairfax County regulated fares: Base fare, or drop charge, includes first 1/6th of a mile. When traffic is traveling less than 10 miles per hour, driver may charge either the mileage fee or a waiting charge of $0.36 per 61 seconds. 12

Staff Recommendation Rates have increased 8.2% since 2012 3.5% (2014) + 4.7% (2012) = 8.2% Staff recommends no change in rates in 2015 Keep initial charge (drop fee) at $3.50 Keep per-mile charge at $2.16 ($0.36 per 1/6th mile) 13

QUESTIONS?