Watch CBS News

Cabbies, City Agree To Reforms; Centralized Dispatch, But No Fare Hike

CHICAGO (CBS) -- With the city of Chicago allowing so-called ride-sharing companies to operate under fewer restrictions than traditional taxi companies, the Emanuel administration and cab drivers have reached an unprecedented agreement on reforms to help the taxi cab industry.

WBBM Newsradio Political Editor Craig Dellimore reports United Taxidrivers Community Council secretary Peter Ali Enger called the deal with City Hall a new day for cabbies and city officials who often are at odds.

Engel said the Emanuel administration will introduce a series of proposals to help cab drivers, including a lower lease rate for vehicles more than a year old, reducing some fines and credit card processing fees, and creating a centralized dispatching system.

"For a city the size of Chicago, with a lot of neighborhoods, and only a few areas where cab drivers can pick up fares on the streets, it makes sense to have a dispatch system that works," he said.

Podcast

The agreement will also establish a smart phone app similar to those used by ride-sharing companies, and a way for those without smart phones to call for a taxi.

"We needed to step in in order to help the cab drivers make more money. We want to make sure that they have access to the customers that are using their smart phones to obtain transportation," Chicago Business Affairs Commissioner Maria Guerra Lapacek said.

The plan does not include a fare increase in cab fares; an issue Enger said must be addressed at some point.

"There's over 2,000 owner-operators in the city of Chicago who will not benefit from having their leases reduced, because guess what? They don't pay a lease," he said.

Lapacek said a fare hike would be taken under consideration, but not yet.

"What we wanted to do is make these reforms so that the cab drivers would take home more money, but at the same time the customer was not going to be impacted," she said.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.