Study Addresses Worcester's Taxi-Livery Company Battle
The Worcester Regional Research Bureau has looked at studies and how other cities handled these issues and determined that the city should not limit the number of livery vehicles because it would encourage the spread of illegal, unregulated vehicle operations, which often need the use of police sting operations to be caught. It also said the city should reconsider the time restrictions placed on the livery companies.
"While taxi companies strongly favor this restriction, it does not demonstrably serve the public interest, and would be difficult to enforce in the absence of draconian methods that divert police attention from more important matters," the report said.
Currently, Worcester has two taxi companies (Red and Yellow) and two major livery companies (Ecua Limo and New Worcester Limo). The report cited Worcester Police Chief Gary Gemme as saying there are 96 registered livery vehicles in the city, but no way to know how many unregistered vehicles there are.
The bureau said that the two-hour service call minimum placed on liveries is becoming even less enforceable as new technology comes on the market that enables customers to hail private taxi or livery vehicles on demand through smartphone apps.
"The system is already in widespread use in larger cities, despite the efforts of conventional taxi companies to block it, and can be expected to be brought to Worcester in the not distant future," the report said. "In The Research Bureau's judgment, city governments have no obligation to protect existing commercial enterprises against new and potentially more efficient competitors."
However, the bureau said that if the city continues to set limits such as the two-hour rule, then it should consider increasing taxi medallions each year to account for population growth. Although Worcester's population increased 20,000 between 1980 – when the medallion system began – and 2010, the number of medallions remained at 108. Two were added for handicap-accessible cabs. It also suggested that medallions be issued through a public auction, "rather than given away for a small fee to a lucky or favored few."
The bureau issued the report following a July moratorium put on the issuance of livery vehicle licenses in Worcester. The moratorium was originally imposed so the city council could have time to determine whether to limit the number of livery vehicles – such as limousines – operating in the city. According to the Research Bureau, the moratorium arose because of some livery owners were not observing legal restrictions the city placed on them to help distinguish between liveries and taxis, particularly the rule that forces limo companies to respond to service calls placed at least two hours in advance, rather than as they come in.
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