United States Department of Transportation
i
The Indianapolis Experience with Open Entry in the Taxi Industry: Final Report
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1980-09-01
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[PDF-1.28 MB]
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Abstract:During the early 1970s the City of Indianapolis reversed a long-standing policy of closed entry into the taxi industry by redistributing many of the existing permits. The open entry action was achieved administratively by the City Controller’s Office. Except for the 1970 removal of the previous ratio licenses to population, no change was made in the existing taxi ordinance and no action was required by Council. This report is an account of the Indianapolis experience with open entry. It is based upon discussions with both Indianapolis officials and members of the taxi industry. Documentation, such as data on the number of taxi licenses, has also been consulted to the extent possible. There is little written documentation, however, because of the fact that the open entry decision was not legislatively enacted and hence not preceded or followed by staff studies. The authors state that there are two lessons that may be learned from the Indianapolis experience: 1) adding new owners into a highly competitive supply-rich market is beneficial neither to the public nor to the taxi operators; and 2) the results of an open entry action are likely to be far different in the long run than in the short run. Thus, while not an easily generalized experience, the Indianapolis case is certainly an instructive one for cities contemplating a similar action.
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