Hermosa Beach Slashes Fees For Taxicabs

HERMOSA BEACH, CA — Citing dwindling ridership and stiff competitions from ride-sharing services, the Hermosa Beach City Council voted to slash the fee charged to taxicab franchise by nearly half.

At its May 31 meeting, the City Council approved reducing the franchise fee from $1,100 to $610 per taxicab and lowering the minimum requirement from 40 cabs to 20 cabs per franchisee.

"I value the service that cabs provide," Mayor Justin Massey said. "They have, over time, had more thorough background checks for their drivers. Taxicabs, in my mind, are an essential service to our residents and businesses."

He said that taxis have lost about 60 percent of their business to ridesharing business, citing a Los Angeles Times story. Taxi franchise owners had pushed for a 70 percent decrease. Massey said the deal is only for one year and the council will look into the matter again next year, or earlier if necessary.

The Council slashed the fees to help taxi services better compete with ride-sharing services. The city is preempted from regulating ride-sharing services because it's in the state's jurisdiction.

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