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Council members (L-R) Roberto Balli, Nelly Vielma, Mayor Pro-Tempore Alex Perez, George Altgelt, Charlie San Miguel, Albert Torres, Vidal Rodriguez and Rudy Gonzalez.
The Laredo City Council voted to remove regulations for rideshare companies as well as for vehicles-for-hire at a specially called meeting Tuesday, March 28.
Last week, after only 24 hours of operations in Laredo, Lyft, a rideshare platform, was issued a cease and desist letter by the City that alleged the company was operating illegally.
“Illegally,” however, appears to be a grey area since there is not a city ordinance that addresses ridesharing. Lyft, for example, is considered a transportation network company (TNC), not a vehicle for hire. TNCs, are platforms which connect – via an app or a website – paying passengers with drivers who provide transportation in their non-commercial vehicles.
Tuesday’s meeting provided a forum for members of the transportation industry and advocates to express their support or opposition towards the operation of rideshare companies in Laredo.
Assistant City Manager Robert Eads delivered an explanation for the city’s issuance of the cease and desist letter to Lyft. According to the vehicles-for-hire ordinance (Chapter 32 of the City’s Code of Ordinances), taxicab companies must obtain permits and abide by regulations that are costly. Eads said he believes TNCs should do the same, adding that there are currently 100 taxi drivers holding permits and that the last time a permit was issued was 15 years ago.
Arnulfo Valdez, who spoke on behalf of taxi drivers, said that Laredo’s transportation should be nationally recognized for service in a city so dependent on it. He said that during the last 70 years, with very few exceptions, “Laredo’s taxi union has delivered a service that is efficient, safe, and reliable, properly supervised and regulated by the City of Laredo.” Valdez advocated that the same strict regulations required of taxicab companies be enforced on rideshare services.
Mario Peña, who spoke against the outdated ordinance, said “The regulations that are in place [for taxi drivers] are arbitrary. Why is there only one driver for 2,400 people? Who said that? If we apply regulations to some and not to others, it really is quite unfair.” Peña suggested that Council removes the cease and desist letter against Lyft and re-examine the regulations for taxi drivers. He said there is an untapped market from which both taxi and ridesharing companies can benefit. Cities like Austin have lost the services of TNCs like Uber and Lyft as a result of excessive regulation. Peña added, “Austin may be able to afford to lose those services, but Laredo cannot.”
Representatives from Lyft and Ride Laredo were also in attendance. Both spoke enthusiastically about their intent to serve the Laredo community with platforms that provide mobility options for residents. Lyft has a zero-tolerance drug and alcohol policy and requires criminal background checks for drivers, vehicle inspections, GPS tracking, primary liability insurance, and minimum age requirements for drivers.
The Council expressed overwhelming support for the rideshare companies. District V Council member Nelly Vielma, who abstained from voting due to a conflict of interest (her father is Arnulfo Valdez), said there is a need to expand our local transportation options. Differences arose, however, as Council members debated what would “level the playing field” for cab companies.
District VIII Council member Roberto Balli moved that TNCs operate without restrictions for one year and asked City management to work with the taxi industry to modernize the existing ordinance within the next 90 days. District II Council member Vidal Rodriguez claimed those 90 days would give TNCs an unfair advantage. The motion was voted down 4-3. Mayor Pete Saenz was not in attendance.
District IV Council member Albert Torres moved to remove all restrictions from both TNCs and vehicles-for-hire. The motion was passed unanimously.
It is as of now unclear what type of safety standards will be included in the City Code of Ordinances for taxicab companies. In their rush to level the playing field for transportation providers, the City Council may have thrown safety to the back seat.
To contact your City Council representative, visit ci.laredo.tx.us/government.
