REPORT TO COUNCIL
SUBJECT
Title
Discussion and Direction on Study Issue and Report Related to Car/Ride Share Impacts on Taxicab Franchises and Review of Taxicab Franchise Regulations (Study Issue DPS 15-0102)
Report
REPORT IN BRIEF
At the Study Issues Workshop on February 19, 2015, Council directed staff to conduct a study, on car and ride share impacts on taxicab franchises and review of taxicab franchise regulations (DPS 15-0102). The necessity for the study stemmed from the increased presence and popularity of car/ride share businesses, known as Transportation Network Companies ("TNCs"), and concerns raised by local taxicab franchises that City regulation of taxicabs is more stringent than rules imposed on TNCs, giving TNCs an unfair business advantage.
Sunnyvale Municipal Code (SMC) Section 5.36. Taxicabs regulates taxicab franchises, seeking to achieve reasonable assurance of driver, passenger safety and risk reduction, and a predictable fee structure. TNCs are regulated at the State level by the Public Utilities Commission (PUC).
The firm Harvey M. Rose Associates, LLC (Consultant) was selected to conduct the study based on their experience analyzing municipal transportation issues, studying the effect of regulatory requirements, and analyzing the impact of "sharing economy" innovations on local businesses, residents, and government agencies. Recently, the Consultant conducted policy analysis of the impact of transportation network companies (TNCs) in the City and County of San Francisco.
The primary objectives of the study were to: 1) compare the profiles of the Sunnyvale taxicab franchises with those of car/rideshare businesses, including the differences, benefits and challenges and risks; 2) assess the impact of car/rideshare businesses on Sunnyvale taxicab franchise businesses; 3) review and compare the City's current taxicab franchise requirements with those of neighboring cities; and 4) review and compare regulatory developments r...
Click here for full text