Strip concerns deprive Henderson of extra cabs

Thursday, March 23, 2000 | 11:22 a.m.

Concerned about crowding the Strip with too many taxis, the Nevada Taxicab Authority rejected a taxi company's request for three additional cabs to operate in its off-Strip service area.

The reason: The agency would have been obligated to offer additional cabs to competitive companies serving the same area and commissioners feared they would either oversaturate the market or see the additional cabs shifted to more lucrative runs on the Strip.

Deluxe Taxicab, which is geographically restricted to pickups south of Sunset Road, including Henderson and Boulder City, sought three additional medallions to operate cabs.

Under the rules of taxi operation a company must pick passengers up within its service area, but they can drop customers off outside the area. For Deluxe, that means cabs can pick passengers up in Henderson and drop them off at McCarran International Airport or on the Strip, but they would have to run empty back to the service area for the next customer.

Ray Chenoweth, who spoke on behalf of Deluxe, told commissioners the company's and the area's growth was substantial enough to justify additional cabs. A new resort within the service area -- the Hyatt Regency at Lake Las Vegas -- and increased business at Sunset Station and the Reserve hotel-casino encouraged Deluxe to file for additional medallions.

In addition, cab companies have come under fire for underserving residential communities all over the Las Vegas area.

During the board's investigation of competitive effects on other companies serving the area, other taxi operations with overlapping service in Deluxe's area said they would want to share in any allocation the commission offered.

But because most of Deluxe's competitors serve geographic areas that include Henderson and the Strip, they would be allowed to use their three new medallions to increase service to the Strip. If the competitors' new medallions were geographically restricted, it could oversaturate the market since there are about 12 other companies that could receive three medallions.

After the 3-1 vote by the commission, Chenoweth said Deluxe probably would appeal the decision, meaning that the issue would next be heard by the Transportation Services Authority.

The Taxicab Authority is the regulatory agency overseeing taxi operations in Clark County. The Transportation Services Authority regulates limousines, buses, moving vans and tow trucks and all taxis operating outside of Clark County. It also is the appellate board for all Taxicab Authority appeals.

In other action, the Taxicab Authority approved temporary medallions to serve conventioneers planning to attend one of Las Vegas' largest trade shows.

The National Association of Broadcasters will meet in Las Vegas April 10-13.

Under the approval of temporary medallions for the show, each of the 13 cab companies serving Clark County are eligible for 15 additional cabs between the hours of 11 a.m. and 11 p.m., April 9; 15 additional cabs each between 8 a.m. and 8 p.m. and 11 a.m. and 11 p.m., April 10; and 15 between 8 a.m. and 8 p.m., April 13.

The Taxicab Authority routinely boosts the number of cabs operating during major conventions. The National Association of Broadcasters expects to bring 115,000 people to Las Vegas for its show.

There are about 1,429 licensed cabs operating in the Las Vegas area and during the show, about 465 additional vehicles are authorized to operate at various hours.