City Council Just Approved A New Cab Company—With No Controversy

Starting a cab company in this city used to be a big deal.

For proof, look back a scant three years, when upstart outfit Union Cab proposed a new service it said would be fairer for drivers, but which drew outrage, threats of legal action, and, most dramatically, a parade of taxis laying on their horns as they circled city hall. Oh, and some unsettling racial undertones pervading that angst.

By the time Union Cab finally convinced both Portland's Private For-Hire Transportation Board and city council it was legit, it had been fighting for more than four years.

Contrast that with the relatively effortless path of EcoCab, the Longview-based company that applied for permits last Halloween and this morning saw city council unanimously approve its presence on Portland streets. This city's changed, people.

We first reported EcoCab's oncoming success back in February, when the company won over Portland's taxi board with a plan to put 51 new, mostly electric, cabs on the roads in the next three years. The board unanimously approved that application, sending it to city council, and also took the unprecedented step of okaying 242 new, additional cabs. In an age when Uber and Lyft are knocking at the door—held off by little more than the specter of a lawsuit and the likelihood of eventual access—the thinking went that Portland's cab companies could stand to bulk up their fleets.

Still, the loosely given permits shocked longtime cab company managers, who were used to the city's strict regulation of permits, and wary that a flood of new taxis could hurt drivers' already meager wages.

The wage piece isn't lost on city council. At this morning's hearing, Commissioner Amanda Fritz raised questions about EcoCab's model, which treats drivers as employees making $10 an hour as opposed to contractors subject to the whims of the market (like most companies). Fritz was concerned about the $10 figure, she said, but then read research that drivers make an average of $6.10 an hour, once they've paid daily fees to their employer.

"Obviously it's still a very challenging profession for people to make a living wage on," she said.

Commissioner Steve Novick said he's spoken to state Labor Commissioner Brad Avakian about changing state law to improve cab drivers' situation, something he said he'll "continue to explore."

EcoCab's smooth path to legitimacy was greased by more than a changing culture. The company won the support of other cabbies by saying it would circulate drivers only when cabs are in highest demand—like bar close on the weekend. The company will still provide dispatch service 24/7, as required, owner Ron Knori told the Mercury in February.

EcoCab's going to initially use 15 permits, 12 of them for fast-charging electric Nissan Leafs, Knori said. The remaining three will be vans that can accommodate wheelchairs, as required by city code. EcoCab is planning an eventual fleet of 51 vehicles.

The company may not have long to get up and running before Portland's cab market changes for good. A new "innovation task force" is currently reviewing rules cab companies and "transportation network companies" like Uber and Lyft will need to abide by going forward. Cabbies have insisted that the internet invaders abide by the same strict regulations—over things like insurance, availability, and being able to carry wheelchairs—that cabs have to live with.

But the rules aren't expected to be finalized by April 9, the date Uber has said it will re-enter Portland. The company barged into town last year, against the will of city officials and in breach of city regulation, before agreeing to pull back while city hall got its house in order.

At this morning's hearing, Fritz suggested that the April 9 date may not be the banner day for the free market some are hoping for.

"I don't think Uber and others should assume that we're going to let them operate in our city" if they're not complying with the city code, Fritz said.