This week, the NYC’s black car association (limos and car services) filed suit to block the e-hail pilot that was set to begin today. The argument is that there has traditionally been a formal divide in NYC between taxis you hail on the street (yellow cabs) and cars you reserve in advance (black cars / limos / car services); that that divide serves an important public interest goal; and that e-hail crosses that divide. This raises two questions: 1) why do we distinguish between street hails prearranged pickups? and 2) does e-hail actually cross that line? I’d like to start with the first one because I think it’s more interesting. What we have is a rule — a bright line between heavily regulated, street hail-only yellow taxis and more lightly regulated pre-arranged rides in livery cars. Why do we have that? My suspicion is that there are good reasons why that rule was originally created — but that we now have a Regulation 2.0 opportunity — to satisfy those public interests using tools and techniques not available when the original rules were written. So, why do we have this divide? I can think of:
Passenger safety - since you are hailing on the street, you need to know that you can trust the driver and car. Therefore yellow cabs are subject to greater regulation — when you call a car service you are vetting the company in advance.