City Paves Way for Taxi Service Competition

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Taxi Program
During Monday's city council meeting, Sean Robinson, left, and Barbara Robinson defend the Hermiston Transit Company against complaints of poor service.

[quote style=”2″]Move Aims to Improve Quality of Service[/quote]

For more than a half a century, the city of Hermiston has been served exclusively by one taxi company. That will change after Monday night’s Hermiston City Council meeting.

The council voted unanimously end a 51-year ban which prevented multiple taxi companies from operating within Eastern Oregon’s largest city. The council replaced the existing Exclusive Franchise with a licensing system which allows any taxi company to operate in the community so long as they meet minimum standards established by the city and receive a license.

The move comes after the city has received a number of complaints about the service provided by the Hermiston Transit Company. The existing franchise is set to expire on June 30, and the new licensing program will take effect on July 1. In order to receive a license, taxi companies must provide service for at least 18 hours per day, and all taxi drivers must receive a permit after receiving a background check from the Police Department.

The aim of the new licensing system is to increase competition and, thereby, increasing the quality of service.

Taxi Issue
Hermiston Assistant City Manager Mark Morgan outlines the details of the city’s new taxi licensing program.
“Our Exclusive Franchise agreement bars anyone else from coming into the city to provide transportation service,” said Hermiston Assistant City Manager Mark Morgan. “It’s very difficult to ensure quality with just one company.”

Representatives from Hermiston Transit Company were in attendance Monday night and disputed claims of poor service and said the company already faces competition from the Tribal bus service, Good Shepherd Medical Center’s Care Vans, CAPECO transportation services, as well as others.

“If you add to that – and we’re barely making it right now – we’re going to have to cut back on drivers and we’ll have to shut down,” said Barbara Robinson. “We’re already competing.”

Hermiston resident Milton Farr said he is as regular customer of Hermiston Transit and has enjoyed good service over the years.

“They’ve done so much for me,” he said. “They’ve even carried in my groceries for me.”

Hermiston Mayor Dave Drotzmann said if Hermiston Transit is providing the quality of service it claims to provide, then it shouldn’t be concerned about maintaining its clientele.

“I’m not sure this is something we should be afraid of,” he said. “If you’re doing everything you say you’re doing, then this is an opportunity to demonstrate that.”

There were approximately 4,500 residents in Hermiston when the City Council adopted the Exclusive Franchise for taxis in 1964. The intent of the original ban was to ensure that at least one taxi could make a viable business out of serving the small community.

Today, there are approximately 39,000 people who live within a 12-minute drive of downtown Hermiston. Meanwhile, Pendleton already allows multiple taxis to operate within the city if they meet minimum standards and receive a license, and the population within 12 minutes of Pendleton is only 22,000 people. Research conducted by the city found no other cities in Oregon of a similar size to Hermiston which still use an Exclusive Franchise for taxi service.