Anchorage officials are preparing to review a sweeping update to local rules that govern taxis, chauffeur services, and app-based rideshare companies such as Uber and Lyft. The proposed ordinance is scheduled for introduction during the Anchorage Assembly’s regular meeting and could bring meaningful changes for drivers, operators, and passengers alike.
According to a January memorandum filed with the measure, the updates are intended to modernize long-standing requirements, reduce unnecessary barriers, and improve safety across the passenger transportation sector.
Overall, the proposed changes aim to “remove obsolete requirements … encourage compliance and increase safety; and to lower barriers and cost to entry,” according to the memorandum.
Why the city says changes are needed
City officials say the ordinance reflects how much the transportation industry has evolved, particularly with the growth of app-based platforms and advances in vehicle technology.
“The Municipality does this to protect the public’s interest with respect to the price, quality of service, and reasonable safety standards provided by regulated vehicles,” states the memo, which was prepared by Transportation Inspector Carrie Belden and submitted to the Assembly through Mayor Suzanne LaFrance’s office.
The proposal includes updates that affect pricing structures, safety requirements, and enforcement authority, with potential ripple effects for both drivers and passengers.
Proposed changes to taxi pricing
One of the most noticeable changes for customers would involve taxi fares. The city currently caps how much taxis can charge to start a trip, commonly referred to as the flag drop. That fee has not been adjusted since 2005.
Under the proposal, the flag drop would increase from $3 to $6.
The ordinance also proposes an update to mileage rates. The current maximum charge is $0.30 per tenth of a mile, a rate last revised in 2013. The proposed rules would double that ceiling to $0.60 per mile.
City officials note that both pricing limits have remained unchanged for years despite rising operating costs.
Shift toward digital fare technology.
If approved, the ordinance would also allow taxis to move away from traditional analog meters. Drivers and operators could adopt smart taximeters, which use software, GPS, and mobile technology to calculate distance and fares.
According to the Assembly memo, the newer systems are a “win, win for all stakeholders,” because they are “more reliable and require less maintenance costs.”
Supporters say the shift would bring taxi operations more in line with modern transportation technology already used by rideshare platforms.
Expanded safety requirements for vehicles and drivers
Safety provisions are a major part of the proposal. One change would require both taxis and rideshare vehicles to be equipped with audio and visual recording equipment capable of storing recordings for five days. Current rules require storage for three days.
The ordinance would also expand the authority of the municipality’s transportation inspector when it comes to chauffeur licenses. Under existing code, a driver’s permit can only be revoked after a criminal conviction.
The new rules would allow suspension if there is a “preponderance of the evidence (i.e., that it is more likely than not)” that a driver has repeatedly violated traffic laws, cannot safely operate a vehicle, or has acted in an unlawful, sexual, or violent manner toward a passenger.
Input from industry stakeholders
The Anchorage Transportation Commission reviewed the proposed measures earlier this month and voted unanimously in favor of forwarding them to the Assembly.
“We believe these updates will help the efficiency of the industry and improve safety for all involved,” wrote William Burke, chair of the commission.
Burke told Assembly members the proposal followed “extensive discussions” with stakeholders, including “the Municipal Attorney’s office, permit owners, business owners, dispatch companies, chauffeur drivers, and the public.”
Aligning city rules with state law
Much of the ordinance focuses on aligning Anchorage’s local code with state regulations. In 2024, Alaska lawmakers passed legislation governing Transportation Network Companies, which include app-based services such as Uber and Lyft.
Because state law now covers many areas previously addressed at the municipal level, the new ordinance removes redundant language from the city code.
What happens next
The proposed ordinance is expected to move to public testimony in February, allowing drivers, operators, and residents to weigh in before the Assembly makes a final decision.
For rideshare drivers and others working in Anchorage’s passenger transportation sector, the outcome could shape fare structures, compliance requirements, and day-to-day operations for years to come.
Source: Anchorage Daily News
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