The city of West Hollywood employs a franchise system that shares similarities with Santa Monica. Seven franchisee companies are licensed to operate in West Hollywood. Only the licensed drivers from these seven companies can legally pick-up passengers in the region.
As previously mentioned, West Hollywood has experienced problems with unlicensed taxicab’s operating in their city. This present’s serious customer safety issues and constrains city resources by having to regulate these “bandit” cabs. As a result, in 2011 West Hollywood increased regulations to mandate that permit decals must be clearly displayed in front and back of the taxicab (instead of just the back bumper). This increase in regulation was both warranted and reasonable, as it helps to eliminate information asymmetry on the part of the customer and the city. West Hollywood also ensures a thorough driver screening process that includes a criminal …show more content…
In the city of Long Beach, there is one company that holds an exclusive franchise agreement with Long Beach (Long Beach Yellow Cab). Unlike Santa Monica and West Hollywood, they are allowed to service other cities, such as Bellflower, Cerritos, Hawaiian Gardens, Lakewood, Los Alamitos, Seal Beach, and Signal Hill. According to the Long Beach Yellow Cab website, It is mandated that the drivers have a fingerprint background check, a drug test, a one-day course on effective driving, and a review of their driving record from the DMV. It is also implied on their website that their vehicles are fully insured and their drivers and experienced in the field, although it is not specified . It is also not mentioned anywhere online the price of holding the franchise in Long
As previously mentioned, West Hollywood has experienced problems with unlicensed taxicab’s operating in their city. This present’s serious customer safety issues and constrains city resources by having to regulate these “bandit” cabs. As a result, in 2011 West Hollywood increased regulations to mandate that permit decals must be clearly displayed in front and back of the taxicab (instead of just the back bumper). This increase in regulation was both warranted and reasonable, as it helps to eliminate information asymmetry on the part of the customer and the city. West Hollywood also ensures a thorough driver screening process that includes a criminal …show more content…
In the city of Long Beach, there is one company that holds an exclusive franchise agreement with Long Beach (Long Beach Yellow Cab). Unlike Santa Monica and West Hollywood, they are allowed to service other cities, such as Bellflower, Cerritos, Hawaiian Gardens, Lakewood, Los Alamitos, Seal Beach, and Signal Hill. According to the Long Beach Yellow Cab website, It is mandated that the drivers have a fingerprint background check, a drug test, a one-day course on effective driving, and a review of their driving record from the DMV. It is also implied on their website that their vehicles are fully insured and their drivers and experienced in the field, although it is not specified . It is also not mentioned anywhere online the price of holding the franchise in Long