HOUSTON, Texas — Breitbart Texas has obtained a memo from Houston’s Administration of Regulatory Affairs (ARA), addressed to Mayor Annise Parker, which reveals that city taxpayers will shell out almost $600,000 per year to enforce ordinances that apply to the transportation companies Lyft and Uber. Critics complain that the ordinances are unnecessary and only allow for wasteful spending.
Lyft and Uber allow consumers to seek out rides using smartphone apps. They are then connected with a driver, who picks them up using a personal vehicle. Payments, charged through the apps, are made in cash. Both services already complete driving and criminal backgrounds checks for their drivers. Mandatory car inspections are also performed before drivers are able to pick up customers. All of this is currently done at no cost to taxpayers.
Despite this, the City of Houston will spend approximately $570,000 on new and temporary staff to enforce ordinances which essentially duplicate the steps already taken by the transportation companies.
Lyft and Uber “have advised us that they will be onboarding between 5,000 and 7,000 drivers between November 4 and November 21 (the ‘surge’ period), representing more than a 1000% increase in our workload” the ARA memo stated.
It continued, “ARA, with the assistance of HPD, will continue to aggressively enforce the ordinance through citations to drivers and impoundment of unpermitted vehicles….ARA is hiring eight temporary employees to assit with processing applicants during the surge period. The cost of hiring the temporary employees is approximately $45,000. ARA is adding four customer service personnel and six enforcement personnel to manage the increased workload going forward. The cost of the additional personnel is approximately $530,000 per year.”
On behalf of the Houston Republican Liberty Caucus, Joshua Connelly told Breitbart Texas that Uber and Lyft’s own policies, “which were part of their free market business platform, are now regurgitated a second time by the City of Houston to a yearly sum around $600,000. Houston’s redundant ordinances neither increase consumer safety nor show evidence of fiscal responsibility. Additionally, the burdensome costs of licensing, background checks, health physicals, drug tests, car inspections, and other requirements will result in costly barriers to entry for drivers that could cost approximately $100 on up to $250 depending on the cost of physicals that must be conducted at city-approved clinics.”
Uber and Lyft have recently have soared in popularity around the country, and officials have struggled to find a balance between supporting innovation and ensuring the safety of consumers. Not surprisingly, taxi companies remain opposed to Uber and Lyft being recognized in the marketplace.
Connelly added that Lyft is currently “considering leaving the Houston market because of these unnecessary and burdensome requirements.”
In the view of Connelly, the increased regulatory costs and barriers are “exactly what the taxi cartel wanted…. If the ordinance remains as written, the entrenched taxi industry has won. “
Indeed, the ordinance will likely result in traditional cab companies seeing reduced competition in the marketplace. Ultimately, it is Houstonians who will be forced to deal with the consequences if Lyft is no longer an option for getting around the mammoth 627 square mile city.
Follow Kristin on Twitter @KristinBTate.
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