CITY HALL — A City Council committee approved a 50-cent surcharge for using credit cards in taxis Wednesday, even as critics decried "nickel-and-dime solutions" and the mayor insisted cabs already had "a very competitive process" with ride-hailing services.
After an extensive debate that repeated many of the same issues raised Tuesday on taxi reforms, the Transportation Committee approved the 50-cent surcharge without opposition.
The ordinance was proposed by Ald. Anthony Beale (9th), chairman of the Transportation Committee.
"The taxi industry as it stands right now needs some help and relief," Beale said Wednesday.
According to Beale, services like Uber and Lyft have undercut the taxi industry, so that it can't even recruit cabbies to drive anymore. He said taxi lots are filled with idle cabs.
"We need to do something to get these cars back on the street," he said.
The 50-cent surcharge on credit cards in taxis would largely help major cab companies, which own the cabs and pay to install secure card machines. Yet it would also benefit independent cabbies who own their own taxi medallions.
Yet, after several cabbies and taxi-industry officials testified Tuesday that medallions have been "rendered worthless" and the industry is "going to collapse," some aldermen said more drastic measures were needed.
"We need to come up with a comprehensive solution, and we need to do it sooner rather than later," said Ald. John Arena (45th) at the end of Wednesday's hearing. He decried "nickel-and-dime solutions."
Mayor Rahm Emanuel, however, resisted additional reforms Wednesday. "We've created a very competitive process that makes sure that those who use taxis and ride shares have a safe and secure ride and a reliable ride," he said.
Emanuel accused cabbies and the taxi industry of "fighting amongst themselves," pointing out that the reform package scuttled Tuesday had been put forth by cabbies.
Cabbies, however, complained that the reforms put forth by Emanuel Tuesday, and held in the License Committee for additional consideration, were a small sample of the many reforms sought by the Taxi Driver Fairness Task Force.
The credit-card surcharge will not apply to firms like Uber and Lyft, which file credit cards in their apps, nor in the city's new taxi apps Arro and Curb, which likewise already keep cards on file.
Beale's surcharge, which would not make a surcharge mandatory but would simply allow taxis to impose it, would take effect upon approval and heads to the full City Council for final passage next week.
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