Taxicab companies in Austin now have autonomy with their rates and flexibility with vehicle type and uniform following a Thursday Austin City Council decision.

Since their 2017 return to Austin, Uber and Lyft have hurt business for the city’s local taxicab companies, according to transportation department officials. Unlike ride-sharing companies, city code regulates taxicabs on fares, vehicle type, vehicle uniform and metering devices.

City Council’s decision allows flexibility in several areas of the taxi code, such as the number of vehicles in a fleet, inspections, appearance of the vehicles and ability to use a digital metering system; however, much of Thursday’s debate focused on fares. Ride-sharing companies benefit from raising rates at peak hours throughout the day and during special events—autonomy taxicabs are not afforded.

The recommendation for flexibility came from transportation department officials to enhance competition. Advocates from local taxicab outfits said Uber and Lyft have taken 75 percent of their business; however, they argued the code changes would continue to hurt business.

Joe Garcia, a lobbyist with Yellow Cab, said the changes would create a race to the bottom. Innocent Njoku of ATX Coop Taxi said the new regulations would result in “financial disaster” for drivers and their families.

Mayor Pro Tem Kathie Tovo said there are people in the community who rely on taxis for basic needs like getting to doctor's appointments and grocery shopping. Tovo expressed concern that switching from flat rates may negatively impact those populations and requested staff report back to council to understand the impacts of the changes.