TACOMA, Wash. — A popular ride service has pulled out of the city of Tacoma because it didn’t want to pay licensing fees. Starting this week, Lyft will no longer pick you up if you're in the city.
"They just wanted the process to be very simple for their drivers and vehicles,” says Danielle Larson, the Tax and License Division Manager for the city of Tacoma.
As a result, she said she spent months working with cab companies Uber and Lyft to develop regulations they would all have to follow.
But Lyft would rather leave than pay the new fee to do business in the city.
The city decided the ride services -- which started in the area in April -- should pay the same one-time $15,000 fee that cab companies do. Those cab companies lobbied for it.
"We welcomed them in -- but give us the same ability to do business -- because cabs are expensive to operate,” said Sergio Anastasio, who owns four cab companies in Pierce County. “We just wanted it to be fair.”
In an email a company spokesperson sent us, Lyft called the rules "duplicate licensing" requirements.
Lyft claimed its drivers are already licensed in Seattle.
"We've always had our own requirements in Tacoma, and they've always been different than Seattle because we're two different cities with a little different requirements,” said Larson.
Wednesday, KIRO 7 told Anastasio that Lyft had left. He was surprised -- and even a little disappointed.
"Healthy competition is healthy for everyone,” Anastasio concluded.
The licensing requirements include a background check and a training course to familiarize drivers with the city.
They went into effect in mid-October but Lyft didn't stop service until this week.
Meanwhile, Uber has agreed to pay Tacoma the fee and is even planning on increasing its roster of 70 drivers, with 30 more.
KIRO
