A request to increase a company’s taxi rates will advance to the Ocean City Council with the favorable recommendation of a resort commission.
On Monday, the Ocean City Police Commission voted to approve a request from Century Taxi owner Ken Hovance to implement a 30% increase in his current cab fare and a 2% increase every year thereafter. Hovance’s attorney, Paul Abu-Zaid, said his client was seeking a fare increase to improve driver wages and better align with fares in other jurisdictions.
“We just ask that you allow us to increase our rates to keep up with inflation,” he said.
In 2010, Ocean City adopted a taxi medallion system to better regulate the taxicab industry. As part of that system, the city set regulations on fares, inspections and more.
However, Abu-Zaid told commission members this week that the taxicab landscape had changed since that system was enacted more than a decade ago. He pointed to the introduction of rideshare apps and the ability for rideshare companies to set their prices based on demand.
“Unfortunately, the taxi cabs are stuck with the same rate whether it’s on Fourth of July, or whether it’s on September 15 or January 1,” he said.
Abu-Zaid said his client was seeking the city’s permission to raise fare rates. Wages and vehicle maintenance have all increased, but rates have not.
“We’re just asking you to put things in perspective,” he said.