If you were to ask people what they thought about ride-sharing companies Uber and Lyft entering the Las Vegas market, nearly everyone would respond with something positive. That is, unless you are a taxi driver. As much as the taxi drivers and unions tried their best to assure the companies could not encroach on their turf, the efforts fell flat in the end.
Clark County officials have given the companies an idea of the regulations they will be facing when operations begin, presumed to be later this year, more than likely in November. Initially, when Uber was in operation for less than a day in Vegas last year, the rule was that they were not allowed to operate to or from the airport. Now, that has been completely changed.
The county has proposed for operating at the airport, a $45 application fee for a business license, and $50 per vehicle semiannually. Business License Director Jacqueline Holloway said there is talk of a multi-jurisdictional license, which would allow companies to operate in Las Vegas, North Las Vegas, and Henderson. Instead of $50, they would pay $200 semiannually per vehicle.
The companies will also be required to pay an one-time initial fee of $46,545 for a Department of Aviation permit, which allows for setting up the transportation network companies. The companies will also be required to obtain commercial general liability insurance with $1 million for each occurrence and auto liability up to $1 million for any accident.
Now that the taxi companies have come to terms with the ride-sharing companies operating in Vegas, they have responded by announcing rate hikes, approved by the Nevada Taxicab Authority, which will take place immediately. The hikes include a 5-cent increase to the base fare, or “drop.” Additionally, a 20-cent-per-mile fuel surcharge has been reallocated, with 12 cents a mile going towards fuel, and 8 cents going toward basic mileage rate.
Beyond those hikes lies even bigger ones, which include a 3 percent tax for customers on revenue collected, and a fee assessed for any credit-card transaction. The fee is expected to bring $5 million annually to the state highway fund, and $19 million a year towards a new medical school for the University of Nevada, Las Vegas.
McCarran International Airport is expected to start with 32 stalls for the ride sharing companies, but has room to grow from there.
