Proposed taxi regulations may doom local cab companies

SALT LAKE CITY — Don Barron has seen a lot of change during his 32 years in the cab business.

The population in the county he serves has nearly doubled. Hundreds of events have swelled the need for his industry and have tested his business mettle, including an influx of a million-plus transport-hungry visitors for the best-attended Winter Olympics ever.

Soon, however, Barron may bear witness to the biggest taxi challenge yet as city officials near completion of a series of proposals to redefine how taxicabs are allowed to do business in the capital city.

Proposed changes would require newer cabs, more cabs outfitted to serve disabled riders and more technology — GPS tracking, computerized dispatch and the ability to gather data to optimize efficiency.

Those upgrades are expensive, but the revenue possibilities for operators could be lucrative.

Ray Mundy, a transportation expert from the University of Missouri-St. Louis, studied Salt Lake City's ground transportation system in 2005. Results of his work have helped shape both the proposed ordinance changes and a new contract that will put a city cab service out for bid.

That contract, one that would designate two companies and a total of 200 cabs to service the city, is likely worth $20 million — a figure that will garner interest well beyond the borders of the Beehive State, Mundy said.

"You'll get local bidders," he said, "but you're going to get interest from national and international companies that already have operations in eight or 10 cities. … I hate to use the analogy, but it's going to be like Walmart coming to town for the taxi industry."

Under the current model, the city issues a "certificate of convenience" that allows cabs to operate in the city. Those certificates are held by 268 drivers, a number Mundy says is excessive for the amount of cab business in the city.

"Fewer vehicles generate more trips per vehicle and more revenue," he said. "It's in the public's best interest to regulate."

Barron, who co-owns the city's largest taxi company, Yellow Cab, said such regulations not only place undue burdens on his operating expenses but will also lead to poorer service for customers.

"It's pretty simple: If you have 10 drivers, you're going to get one level of service," he said. "With 20 drivers, it's twice as good."