As Lyft launches in La Crosse, taxi companies cry foul

Ride-share companies can’t be regulated by state law like cabs.

La Crosse area cab companies are now having to deal with what those in other, larger cities have run into in recent years.

The stiff competition from smartphone app ride share companies could put a strain on cabs in town, as Lyft recently launched in La Crosse.

CTS taxi owner Bev Scott says her drivers can’t compete with Lyft because it’s not a level playing field. A lack of local regulations gives companies like Uber and Lyft an instant and unfair advantage, as ride share companies like that cannot be regulated locally by state law. 

“They have to have a taxi license in the city,” Scott said of her drivers. “So the city checks their background – 50-state background check. They check their driving record. I do the same, on my side. The driver has to pay $40 for a taxi license. 

“The Lyft drivers don’t have to do that.”

Beyond the drivers, the cab companies themselves are at a severe disadvantage, as well.

“Well, we already have five cab companies in La Crosse. Five cab companies are too much already,” Scott said. “We pay $3,400 per vehicle, per year for insurance. We have $2 million, with another million (in coverage). So, basically we have $3 million worth of coverage that these guys don’t have to pay.”

“Is it fair to the cab company that’s following all the rules and paying all the expenses, and the cab driver that’s (doing the same)?” Scott asked. “No, it’s not a level playing field.”

LYFT LAUNCHES IN LA CROSSE
(Feb. 25)

La Crosse has long had a reputation of being a difficult city for getting a timely taxi.

That may change, as it has now become part of an app-based ride share service.

Lyft has announced it is launching in La Crosse. Lyft, like the much more popular, Uber, connects passengers with drivers through an app.  

Lyft is expanding into about 54 cities around the nation, including four others in Wisconsin, as well as a few in Minnesota.  

The Lyft app connects passengers with drivers through their smartphones. 

Drivers aren’t professionals, just regular people with spare time and a car. While taxis go through a licensing and inspection process in La Crosse, state law bars local governments from regulating companies like Lyft.

Money isn’t exchanged during a transaction, it’s all done through your phone. The app provides ride-cost estimates, as well as ride information. 

Payment is made through the app on your phone, so no cash is exchanged for the ride.

There are no local regulations on ride share companies but there are some state guidelines that the Lyft and its drivers are required to follow.  

AREA LYFT EXPANSION
IOWA
Ames, Cedar Rapids, Davenport, Des Moines, Dubuque, Iowa City, Sioux City, Waterloo

MINNESOTA
Mankato, Rochester, St. Cloud

WISCONSIN
Eau Claire, Fond du Lac, Janesville, La Crosse, Sheboygan