(Updated at 4:40 p.m.) Arlington Red Top Cab launched “Red Select” last week, a car service designed to be less expensive for customers than ordering a Lincoln Town Car, but a different level of service than a taxi.
“We’ve seen, particularly with this economic environment, there’s a space between taxi and sedan,” said Red Top Director of Sales and Marketing Von Pelot, “where we can offer something of a boutique car service.”
Gov. Terry McAuliffe and Attorney General Mark Herring announced today that they reached an agreement with the two smartphone transportation companies with stipulations that will allow them to operate in Virginia. The conditions “will help ensure the safety of passengers, bring the companies into compliance with Virginia law, provide transparency into their operations, and promote a level playing field for transportation providers,” according to a press release.
The state Department of Motor Vehicles issued a cease-and-desist order to the companies on June 5 for doing business in Virginia without an operating permit. Uber and Lyft have continued to operate in the state, including in Arlington, which has led to protests from taxi drivers and a lawsuit from taxi companies. The decision to allow the companies to operate did not come with a penalty for flouting the cease-and-desist order for two months.
None of the County Board members expressed an explicit desire to ban Uber, citing its popularity, but Board Chair Jay Fisette, Vice Chair Mary Hynes and Board member Walter Tejada each expressed sympathy for the county’s taxi drivers — who have organized protests of Uber and Lyft — who are losing business to the ridesharing services.
“As a Board, as individuals, there is a recognition that some of these new services have stolen some people’s hearts or gotten their business because of the technology they provide and some of the customer service they provide,” Fisette said. “We are very respectful of the drivers… that do need to make a living in this community and do a fine job of it, and then we need to figure out as a state and as a community what authority we have and how we might effect and take advantage of that authority as that unfolds.”
The suit, filed in Fairfax County Circuit Court, requests the judge issue an injunction that would prevent the ride sharing companies from operating in Virginia without a broker’s license. The DMV has issued “cease and desist” orders against the two ride-sharing companies, but they have continued to operate in the state.
Uber and Lyft have applied for temporary operating authority while the DMV reviews their applications for broker’s licenses. According to a DMV official, neither company has been granted operating authority — temporary or otherwise — while the department awaits guidance from Attorney General Mark Herring.
Green Tomato Cars Co-founder and Vice President Jonny Goldstone said the car service launched in Arlington in May and has more than 25 cars in its fleet that are licensed to operate in Virginia, and he plans to add five to 10 more every month, as allowed by Virginia law for operating a car service as opposed to a taxi company.
“We’re looking at getting to 70 to 100 vehicles within the calendar year,” Goldstone told ARLnow.com. “With that sort of number, we’re pretty comfortable we’re going to be able to offer a car in 10 minutes wherever people are. At that point, I think we’re really a viable competitor to Uber for the on-demand rides. Right now we’re most convenient as a pre-scheduled ride service.”
Both incidents took place on the 500 block of 15th Street S. Both involved two suspects in their twenties. One robbery was committed at gunpoint. The cab driver was assaulted during the other robbery.
From this week’s Arlington County crime report:
The DMV asserts that the smartphone-based services, which allow drivers to make money by using their own cars like a dispatched taxicab, are illegal because they have not received the proper authorization from the DMV to operate in Virginia.
In letters to company officials, the DMV says it will “enforce existing laws by companies… and by individual drivers that lack authority to provide passenger transportation.”
Peter’s Take is a weekly opinion column. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.
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Dozens of Arlington taxi drivers drove around Arlington this morning with their flashers on and horns honking, protesting county policies that they say do not adequately protect them from cab companies and competitors.
This is at least the fourth taxi driver protest directed at the Arlington County Board since last September. The drivers, organized by Arlington United Taxi Operators, Tenants & Workers United and Virginia New Majority, are asking the Board to impose new regulations on taxi companies that would protect drivers from termination. They are also asking for increased regulation of UberX, which they say is “decimating the taxi industry.”
(Updated at 5:55 p.m.) Nearly a hundred Arlington (Va.) taxi drivers crowded into the County Board offices Thursday afternoon, asking county policymakers to take action against UberX.
UberX, which launched in D.C. last summer, is a smartphone app that connects users with drivers who use their personal vehicles to give on-demand rides. It presents itself as a “better, faster, cheaper” alternative to taxis.
Arlington Has Highest Tax Burden for the Poor — Arlington County has the highest tax burden for low income people in the D.C. area, according to a new study. In response, County Board Chair Jay Fisette suggested that the higher taxes go to providing more services, like affordable housing and better public schools, compared to other jurisdictions. [WAMU]
Op-Ed: Lower The Tax Rate — Local fiscal watchdog Wayne Kubicki says that the the County Board should reduce the property tax rate by 1.5 cents by utilizing part of the $37.1 million in unspent funds left over from Fiscal Year 2014. Kubicki suggests calling the tax rate reduction a “Vihstadt Dividend.” [InsideNoVa]
