New York City Clears Controversial Smartphone Taxi-Hailing Apps

New York City Taxi and Limousine Commission (TLC) voted Thursday to approve a year-long taxi e-hailing test program. During the pilot program people can use their smartphones to hail and pay for the yellow cab rides. This will grant app makers permission to test their mobile taxi booking and payment systems in the city. According to the new rules, downloaded apps will link customers with drivers starting Feb. 15.

"The proposal would limit apps, not allowing them to accept ride requests from distances of greater than one-half mile in Manhattan's central business district and one and one-half miles in other boroughs and upper Manhattan," The Wall Street Journal reported. Drivers will be able to accept a fare with a single touch on the smartphone and will allow them to process payments through the existing meter and credit card system. The program will be up for a review after one year.

The new set of rules for the test program has been altered from those first proposed by TLC Chairman David Yassky. "The short of it is, we should not ignore technology that's out there," Yassky said before the vote. "This is not speculative. This is real today. We can look at other cities and see passengers are using these products and benefiting from them," The WSJ reported. "Regulation shouldn't stand in the way," he said.

The approval for taxi-hailing service will necessitate adaptation of apps from companies such as Uber, Hailo, GetTaxi and others. Some of the products from these companies are being used in other markets, but these apps do not confirm to the requirements laid out in the TLC's new rules. Uber had launched an experimental e-hail program in September, but halted the service as questions of its legality arose. "Today, New York City's government overcame its own reticence and overwhelmingly passed a plan to bring the nation's largest taxi market into the 21st century. New York City's Taxi and Limousine Commission - a regulatory board that historically has seen its role as protecting the status quo - will launch a year-long pilot program to let New Yorkers and visitors alike use their phones to connect with yellow cab drivers blocks or miles away. For New Yorkers, this means that Uber can get you a taxi along with the black car service you know and love." Uber CEO Travis Kalanick wrote in a blog post.

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