Taxi use in West Hollywood has dropped an estimated 40% to 60% since 2012, and nearby cities have seen declines at least as large. That is according to two new reports by WeHo by the Numbers, based on city data. One report focuses on West Hollywood, the other on nearby cities. They look at the impact of Uber (which arrived in 2012) and Lyft (2013).
Seven taxi companies currently serve West Hollywood under city-granted franchises. They provided an estimated 500 taxi trips per day in the city in 2016.
Since earlier trip numbers are not available, the report estimates the drop in trips based on the declining number of taxis and taxi drivers. Each individual taxi and driver working in West Hollywood needs a permit, so the city knows how many there are. That does not necessarily mean they are in West Hollywood full-time. Some or all of them also work in neighboring cities.
The city sets the maximum number of taxis that the companies can use in West Hollywood. Prior to 2012, the cap was 530. In 2012, the cap was raised to 569 at the companies’ request. That is a big number for a small city. It reflected demand from the city’s hotels and nightlife businesses and the ability to use the same taxis in neighboring cities.
Since 2012, the actual number of taxis has dropped far below the cap. Currently, there are 349, almost 40% below the cap. It suggests that taxi usage has dropped at least 40% since 2012.
The number of taxi drivers in West Hollywood has dropped even faster than the number of taxis. It fell from about 950 in 2012 to about 350 in 2016. That’s a decrease of over 60%, suggesting that taxi use may have dropped as much as 60%.
A closer look at the taxi driver numbers shows that the losses have been accelerating. In 2012, the number of drivers increased 6%. In the following years, it fell 5%, 19%, 26%, and 34%. The losses come from an increasing share of drivers quitting West Hollywood, along with fewer and fewer new drivers replacing them.
The drop in taxi trips can be seen in the city’s nightlife areas. Taxis used to be the primary for-hire transportation mode. But when the city’s consultants checked last year, taxis had only 6% of the pickups and fewer drop-offs. Uber, Lyft, and car services had the rest.
Nearby cities have experienced drops in taxi use at least as big as West Hollywood’s 40% to 60%. For example, the number of taxi trips in Los Angeles fell 44% from 2012 to 2016. It went from 8.4 million to 4.7 million, a loss of 3.7 million trips a year or 10,000 trips a day. If not for growth at Los Angeles International Airport, the overall decline in taxi trips would have been about 60%.
To find out more, see the full reports, How much has taxi use dropped in West Hollywood? and How does the drop in taxi use in nearby cities compare to West Hollywood?