ABSTRACT

The history of de facto taxicab industry deregulation in Seattle begins with an examination of the impacts of for-hire vehicles (flat rate), town cars (limousines) and transportation network companies (TNC). The various strategies used by the TNC industry to avoid regulation are studied: ride share exemption, not for-hire service, not a transportation company, a new technology, seeking state preemption. The City of Seattle engaged a consultant to conduct a Taxicab Demand Study in 2013. The study reported on surveys and street interviews on capacity utilization, latent demand and service quality. A 2014 Seattle taxicab ordinance recognized the need to regulate the TNC industry as for-hire vehicles pursuant to existing delegated authority in state law. The 2014 ordinance legalized the TNC industry in Seattle. But is widely seen as watering down, repealing or privatizing many regulatory requirements or otherwise lowering the bar. Concessions were made to taxicab and for-hire vehicle owners, taxicab and for-hire vehicle drivers and the TNC industry. Taxicab industry economics are revisited: competition from the TNC industry, taxicab trip revenue, taxicab revenue trips, growth of the for-hire transportation industry, airport taxicab trips, taxicab medallion market values, issuance of more taxicab medallions and negative externalities.