Taxi drivers lobby Austin City Council Taxi cab drivers, franchise owners and other stakeholders filled Austin City Council's chamber June 4.[/caption]

Changes to franchise agreements between city of Austin and taxi cab companies were made after months of deliberation and compromise.

Austin City Council approved various changes June 4 to taxi franchise agreements and driver regulations in effort to protect taxi drivers from unfair practices and level the playing field for taxicab companies now that transportation network companies, or TNCs, such as Uber and Lyft are legal in Austin.

Several residents, including drivers, residents who use wheelchairs and taxicab company representatives, repeatedly publicly expressed their opinions about the latest regulatory changes. Many taxi drivers  in opposition to allowing more permits for Yellow Cab Austin and Austin Cab cited cases of mistreatment against drivers. Dave Passmore, Taxi Driver Association of Austin president, said he is not opposed to a third company, Lonestar Cab, receiving extra permits.

Representatives for the three taxi franchises told council they oppose capping, or limiting, how many permits a franchise can have.

Members from ADAPT Texas, a nonprofit that organizes disability rights activities to ensure the freedom for people with disabilities, said even though the changes are a step in the right direction, they might not be enough without enforcement.

“We really don’t see any consequences for non-achievement or nonperformance,” ADAPT member David Wittie said at a prior Mobility Committee meeting.

Jennifer McPhail of ADAPT said people with disabilities are typically not picked up by taxi drivers when a request for a ride is submitted.

Yellow Cab Austin President Ed Kargbo said the regulatory changes have come together well and he supports a recommendation to allocate new permits based on performance measures. Kargbo said other changes designed to ensure access for passengers who need an accessible vehicle might not be as effective.

“The major problem is drivers refusing a request for service from dispatch,” he said. "Increasing the number of wheelchair accessible vehicles would not solve the underlying problem.”

Austin City Council unanimously approved the code changes and new franchise agreements June 4. The revisions come after council directed staff via a May 21 resolution to create a new c0-op taxi cab franchise model in which taxi drivers would hold their own license.

Franchise agreement changes:



  • Taxicab companies would be required to have a computerized dispatch system. Kitchen said one company has this system in place but the other two do not so this clause would align all franchise agreements.

  • The term of franchise agreements would be extended from one year to five years.

  • Each franchise would be allotted an additional 50 permits in the first year of the new franchise agreement. Any additional permits beyond the first 50 would be based on compliance and performance measures approved by City Council and there would be no cap.


Code changes:



  • The number of permits for vehicles that are accessible to passengers with disabilities would be six percent of the total number of permits.

  • Accessible vehicles would provide between one and three percent of the total monthly trips provided by a cab company. The formula would vary for each company because of varying number of vehicles.

  • Penalties for failure to meet performance measures would be implemented on taxicab companies.

  • While a driver is in service, he or she must accept a request from dispatch when that driver is determined to be closest to the request via GPS.

  • Franchise companies must have a procedure for resolving disputes between the driver and franchise.