Hermosa Beach council okays cheaper for taxi franchises struggling to survive with Uber, Lyft
The Hermosa Beach City Council new agreements with taxicab companies last week, granting significantly lower franchise rates as a result of the challenges cabs are facing from ride-hailing companies like Uber and Lyft. The new agreements, which earned unanimous approval, are in effect for one year and give four Southern California companies the exclusive right to operate in Hermosa at a cost of $610 per taxi. The fee represents a significant discount from the previous arrangement, which charged $1,100 per taxi. Staff designed a one-year agreement in part because of uncertainty over how pending state legislation would affect the project. The diminished rates were a reflection of the struggles facing taxi companies and drivers. Mobile phone-based ride-hailing has cut into their business significantly, with an estimated 70 percent revenue decline in the last five years, according to Daniel Klein, director of business development and government affairs for Bell Cab Co., one of four cab companies to sign a franchise agreement with the city. “The first request we’d make is that…you take the current number and reduce it by 70 percent, The ultimate goal is for cab drivers to have a living…
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