This post was contributed by a community member. The views expressed here are the author's own.

Politics & Government

Council Approves Expanded Taxicab Services

Two more companies receive permits to pick up customers within Culver City limits but existing firms warn that there are now too many for all to be profitable.

Two more taxi companies have been given the go-ahead to service Culver City streets, the Culver City Council voted Monday night.  

This brings the total number of cab services in Culver City to seven. The companies, All Yellow Taxi and Taxi Taxi, will begin operating within city limits later this summer. 

In approving the permits, City Council members said driving up market competition is a good thing.

Find out what's happening in Culver Citywith free, real-time updates from Patch.

“I really want to provide Culver City with the maximum options with regard to service levels here,” said Councilman Christopher Armenta.

But taxi drivers already stationed in Culver City warned of crippling a business that's suffering in the wake of the recession.  

Find out what's happening in Culver Citywith free, real-time updates from Patch.

Wayne Sibilia said he has been a cab driver with Culver City Taxi for 28 years. He used to work five and a half days a week, he told the council.

Now, Sibilia said, he works seven. Some days, he receives only four fares in a 10-hour period.

“There is not a necessity for more taxis,” Sibilia said. “There is already a financial hardship for all.”

Sibilia’s comments were echoed by a number of other longtime taxi drivers who attended the meeting on behalf of Culver City Yellow or United Independent Taxi Drivers Inc. Culver City Yellow is also restricted to pickups within the city boundaries, whereas the other companies are able to service Santa Monica and the South Bay.  

“We don’t work anywhere else,” said cab driver Paul Magoziak. “Our sole livelihood depends on Culver City.”

Beverly Hills Cab Company also holds permits, but has not used any for seven years. Correction: White & Yellow Taxi Cab company has not used its permits for seven years.

Both Culver City Yellow and United Independent Taxi are members of the Chamber of Commerce and are actively involved in the community, supporting police, firefighters and the symphony orchestra, Culver City Chamber of Commerce President Steven Rose told the council. 

"Because of the tight type of service taxis do provide, we always ask if anyone complains after using those two cabs," Rose said. "In the past 10 years we have not received one complaint, which I think is a great testimonial." 

The city staff report also noted that no formal complaints about the current level of service have been received.

Anecdotal complaints have reached the council members, however, particularly from the disabled community, said Councilman Andrew Weissman.

Armenta also noted that boosting the number of taxi companies serves as a potential revenue source at a time when the city could use it. The city projects receiving about $16,000 annually from approving All Yellow Taxi Cab service, and about $39,000 from Taxi Taxi. 

These estimates, however, rely on whether the companies use all of the 105 allocated permits. This is unlikely, the staff report states.

Culver City cab companies are already using fewer than half of the permits issued to them.

“If the business was there, we would ask for more cabs and use those permits,” Magoziak said.

Vice Mayor Scott Malsin said he is concerned about market saturation and a lack of business now, but ultimately voted for the measure.

One cab customer came forth to support the idea of more cabs.

“We need more yellow cabs to get to places a lot sooner,” said Helen Fukuhara, speaking on behalf of Culver City Yellow Cab.

Had more residents come forth to state the opposite, Armenta said he would have been more strongly persuaded to deny the new permits.

Mayor Michael O’Leary abstained from the vote.

“I don’t want the current level of service to be affected in any way, shape or form,” O’Leary said.

A trial period has been set to test the effects. The issue may be revisited by the council in the future if reports surface of negative impacts in traffic or service, council members said. 

In other council business, the panel also formally approved an agreement with the Culver City Employees’ Association to create a second tier of pension and retiree health benefits for future hires, and reducing such benefits for current employees. The council also passed a resolution to form an assessment district in the city along West Washington Boulevard.  Correction: The council did not form the Phase 3 assessment district as there was a majority of ballots returned opposing its creation.

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?