AGENCY TESTIMONY
Discussion of Intro 277 on taxi e-hail trip payments
1:27:04
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133 sec
Commissioner Do discusses Intro 277, which would require taxi e-hail trips to pay drivers at least as much as traditional street hail trips. He explains the background of the FlexFare pilot and TLC's opposition to the bill.
- Intro 277 would effectively reverse studies and rulemaking efforts dating back to 2018
- The FlexFare pilot allows taxi e-hail apps to offer upfront pricing, helping taxis compete with Lyft and Uber
- Taxi drivers can decline e-hail trips if they're not satisfied with the upfront price
- E-hail represents about 5-10% of taxi trips, providing a supplemental trip source for the industry
- TLC analysis found that per-mile take-home pay was slightly higher for FlexFare than metered rate trips
- TLC opposes the bill, arguing it would harm taxi competitiveness and likely cause customers to avoid the taxi industry, potentially reducing trips by up to 10%
David Do
1:27:04
Intra277 would require taxi eHealthtrips such as those arranged by taxi apps, curb and curb and arrow to pay drivers at least as much as they would have received on a traditional street hill trip on the meter.
1:27:17
This bill would effectively reverse studies and rule making efforts dating back to 2018.
1:27:22
When TLC first launched the FlexFair pilot, under this pilot, eHealth app companies were permitted to offer upfront pricing to taxi passengers allowing taxis to compete with Lyft and Uber for customers.
1:27:35
As upfront pricing is a key factor that contributed to the growth of the app based FHVs, granting the taxi industry the same flexibility is vital to ensuring their long term competitiveness.
1:27:46
Importantly, taxi drivers can decline eHealth trips if they're not satisfied with upfront price.
1:27:53
The choice to opt in is theirs.
1:27:56
EHealth now represents about 5 10% of taxi trips.
1:28:00
Small but important supplemental trip source for the industry at a time when taxi trips are still at about half of twenty nineteen levels.
1:28:07
TLC also analyzed fare and driver pay data, finding that per mile take home pay was slightly higher for flex fare than the metered rate trips.
1:28:16
And that average flex fare trip are longer than metered trips.
1:28:21
Following our public hearing and response to stakeholder feedback, TLC also analyzed the driver pay data in alternative ways finding that on trips with similar origins and destinations, Flexfair trips paid slightly more than metered trips.
1:28:35
Based on all of this analysis and because Flexfair is a small option part of the taxi sector, we determined that it would not be appropriate to impose additional fare or pay requirements on taxi eHealth trips.
1:28:47
Instead, we continue to monitor Flexfares' impact on the industry and may adopt additional requirements in the future as needed.
1:28:54
Requiring eHealthTrust to pay at the meter rate would harm taxi competitiveness and likely cause customers who prefer app based dispatch to avoid the taxi industry altogether.
1:29:05
Reducing trips by as much as 10% and moving 1,000,000 of dollars in revenue from taxi to Uber and Lyft.
1:29:13
For those reasons, TLC opposes this bill.
