News
Denver Taxi Competition Becoming a Fare Playing Field
DENVER-(Business Wire)-July 1, 2008 - On July 1, the law governing entry into the Denver metro taxicab market changes drastically. In the most recent legislative session, the Colorado General Assembly passed a bill inviting increased competition in the Denver taxicab market that has not seen a new player in over a decade. Governor Ritter signed the bill, and the new law becomes effective on July 1. The 262 drivers of Union Taxi Cooperative intend to take advantage of that change. Union Taxi Cooperative is filing an application with the Public Utilities Commission (PUC), requesting a license to open and operate the first new taxi company in Denver since 1995.
"This endeavor challenges the current oligopoly which discourages enterprise and competition," said attorney Ray Gifford, partner at Kamlet Shepherd & Reichert, the firm representing Union Taxi Cooperative, and himself a former chairman of the Colorado PUC. "This new company exemplifies the entrepreneurial spirit Denver is known and revered for, and benefits everyone who has a vested interest in transportation," he said.
Union Taxi Cooperative already filed an application for temporary authority on June 18 in an effort to initiate operations prior to the Democratic National Convention (DNC) in August. If the temporary application is approved, the new cooperative plans to be operational in time for the DNC as well as the Custom Electronic Design and Installation Association (CEDIA) convention the following week. Union Taxi's entry into the Denver taxicab market will help meet increased demand for taxicab service and will benefit visitors and enhance their convention experience in downtown Denver.
Gifford calls the old law governing taxicab service, which made entry into the taxi business nearly impossible "a mockery of the American free enterprise system." The old law put the burden on a would-be new taxicab company to demonstrate that existing service was insufficient. The law that becomes effective on July 1 instead presumes that healthy competition is a good thing, and shifts the burden to the existing companies to prove that a new company would be a detriment.
Abdi Buni, the elected president of Union Taxi Cooperative is embracing this opportunity to partake in the American dream for the UTC drivers.
"The new company is an exciting opportunity for us," said Buni. "Right now most of our money either goes to gasoline or to companies who require steep surcharges to work for them. This gives us a chance to be owner-operators, working for ourselves as well as to provide a better product for the consumer."
The PUC is likely to consider the temporary application at their July 2 meeting, and their approval would allow Union Taxi Cooperative to commence operations in mid to late July, potentially putting the first new taxi on Denver's streets before August 1. Union's application for permanent authority will be reviewed and considered in the fall of 2008, setting the stage for permanent operations and significant additions to their fleet.
About Union Taxi Cooperative
Union Taxi Cooperative is comprised of 262 members, all current and experienced taxi drivers in the Denver metro area, who seek to fulfill the American dream by becoming owner-operators of their own business. As owners-operators of this new cooperative, Union Taxi members bring a unique passion and commitment to providing excellent taxicab service in the Denver area. They are driven to make Union Taxi Cooperative - THEIR company - succeed.
About Kamlet Shepherd
Kamlet Shepherd, one of the fastest growing law firms in the Rocky Mountain region, was formed in 2000 by partners determined to make customer service and responsiveness a hallmark of the firm. Based in Denver, with an office in Washington, D.C., Kamlet Shepherd has over 40 attorneys and focuses on Corporate and Securities; White Collar Criminal Defense; Real Estate and Project Finance; Environmental, Energy and Natural Resources; Communications, Internet and Intellectual Property; and Commercial Litigation.
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