A proposal that would significantly increase taxicab rates will be reconsidered after City-County Council supporters decided that higher fares could have far-ranging effects that should be examined more thoroughly.
The measure would raise the limit on taxi fares by 25 cents per fifth of a mile, so that passengers would pay $3.25 per mile instead of the current $2 per mile, an increase of 62.5 percent.
Rising gas prices and the regulated limit on fares led to the proposal passing unanimously in a recent committee meeting. But the measure’s author, Democrat Jackie Nytes, said she later came to realize that the matter deserves further study before action because there were “unintended consequences.”
“Cab drivers showed how gas prices are up so high they have to drive 12 to 16 hours a day to make a living,” Nytes said. “In committee, we were feeling sympathy for independent drivers, but at the end of the day, we have to feel sympathy for passengers, too.”
Nytes sent the proposal back to committee for further review and probable amendment. It was unclear whether the issue would be addressed soon or whether it will be months before it comes back for action.
Some possible alternatives to a fare increase are a surcharge based on fuel prices or regulation of the pickup rate, which Nytes said some small companies already have bumped up $1.
While Republicans control the council 16-13, Nytes said the measure did not create partisan rifts in the Administration and Finance Committee.
It would be the first major fare increase since 1996 and would take effect July 1.
The proposal also would create a nine-person interim commission to study rates, licensing and other taxi services, with a report due by Nov. 1.
Indianapolis cabs are highly regulated — they are allowed to idle in front of hotels but not allowed to cruise the streets looking for customers. Nytes said there are about 600 licensed taxis in the city.
Roland Dorson, president of the Greater Indianapolis Chamber of Commerce, said Indianapolis is not a cab town the way Chicago is. Few people who are not visitors take cabs regularly for business, he said.
Bob Schultz, director of communications for the Indianapolis Convention and Visitors Association, said his organization has not weighed in on the measure. He wasn’t sure whether the association would oppose it on behalf of the convention business and other visitors, who would pay the bulk of the burden.
Schultz said the association has spoken on the issue in the past, taking the view that cost and value must be looked at together with services provided to visitors.
“That’s a dramatic increase,” Schultz said. “At the same time, there’s no question that gas prices have risen dramatically.”
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