More taxis could be on Austin roads

AUSTIN (KXAN) - Austin city officials are considering a proposal that would allow more taxis to operate locally.

Right now there are three main taxi services in Austin, but one has a clear advantage because they have the most permits:

• Yellow Cab: 455 permits
• Austin Cab: 162 permits
• Lone Star Cab: 58 permits
• TOTAL: 675 permits

"In order to be in a competitive market Lone Star needs more permits to share this market competitively, it's kind of like a monopoly and Lone Star is in unfair competition," said Nega Taddesse, Lone Star driver.

Tuesday night the Urban Transportation Committee met to hear from taxi drivers about the proposal to issue 50 more permits to Lone Star Cab and 25 more to Austin Cab between February and June.

Many cab drivers said there's an unfair advantage by Yellow Cab for having more permits and they also face competition from non-permitted taxi services, like the electric cabs.

City officials are also looking to tack on an additional fee for those riding in a cab during peak hours.

Drivers said that would help bring more cab drivers out to make more money and additional permits won’t be needed.

"There are drivers but they are not coming out. If the city adds an additional $2.50 fee it will help bring out a lot more drivers," said Jeffrer Abraham, Yellow Cab driver.

The Urban Transportation Committee will make its recommendation to City Council at the beginning of next month.

The City Council will have the final say.