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When San Diego lifted its taxi permit cap, and what came next

When San Diego lifted its taxi permit cap, and what came next

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Photo: Ehedaya Ehedaya. / Wikimedia Commons (Public domain)

On Nov. 10, 2014, the San Diego City Council voted 8-1 to eliminate the city’s cap on taxi permits, ending a limit that had stood for about 30 years. The vote followed years of organizing by drivers who said the cap concentrated permits among a small number of owners and forced most drivers to lease cabs.

What the cap did

Before the vote, the number of permits was capped at 993. Because so few were available, permits issued for a few thousand dollars were resold privately for many times that amount, according to city officials at the time. Most drivers did not own permits and instead paid weekly lease fees to permit holders.

What changed

The ordinance, championed by Councilmember Marti Emerald, removed the cap and also:

  • limited taxicabs to vehicles no more than 10 years old,
  • barred vehicles with salvage titles from service, and
  • reduced the experience required for a new permit holder from five years to six months.

Councilmember Lorie Zapf cast the lone vote against the measure, arguing for a phased approach.

The ride-hailing era

The vote came as Uber and Lyft were expanding rapidly in San Diego. Ride-hailing services are regulated by the California Public Utilities Commission rather than by cities, and they soon carried a large share of trips that once went to taxis, including at the airport and downtown. Taxi permits in San Diego are administered through the Metropolitan Transit System under agreements with local cities.

Records and reports used here: KPBS / City News Service: San Diego City Council eliminates cap on taxi permits (2014); MTS: Taxicab Administration.

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