Taxi drivers in Los Angeles will soon have to use an Uber-like app to allow riders to hail cabs from their mobile phones, city officials announced on Thursday.
City officials said the "e-hail" app requirement should help licensed taxis compete against ride-sharing apps like Lyft, Uber and Sidecar, which are popular due to their cheaper fares and efficient customer service.
"It's probably not going to be a panacea but it's going to improve things," said Los Angeles Board of Taxicab Commissioners President Eric Spiegelman, according to Reuters. "At the very least, it's a gigantic first step."
Cab companies in Los Angeles, which operate 2,300 licensed cabs, reported a 21 percent drop in rides in 2014. They've also complained that they are bound by regulations on problems like fare and safety structure that don't apply to ride-sharing companies.
An app could be popular in L.A., where it can be hard to find a cab. Besides catching one at a major hotel or Los Angeles International Airport, interested riders normally have to call a dispatcher and face long waits.
The five-member Board of Taxicab Commissioners decided to start the app program on Aug. 20 and could impose fines of $200 a day on drivers who don't use an "e-hail" app.
Some additional details do need to be worked out however, like whether to include flexible fares or fixed rates, to build a new app or use a current one and to use one or multiple apps for different companies.
Cab company representatives don't hate the idea, but would like to be included in a working group that will make recommendations on what will be featured on the app.
"We're not against it," said Jano Baghdanian, general manager of MTS Management Inc, which operates several cab services in Los Angeles, according to Reuters. "It's just the practical question of how does that make it a change, how does that make it a level playing field?"
Uber has been in trouble all over the world over concerns over passenger safety. For example, Los Angeles and San Francisco filed a lawsuit against the app last month for misleading customers about its background checks on those who drive for the company.
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