Starting a taxicab business in Pismo Beach could get easier as the city tries to update its regulations around the transportation service.
At its June 17 meeting, the Pismo Beach City Council directed staff to return with recommendations on subsidized fees for taxicab permits and on conducting background checks on interested drivers to boost safety. The City Council also tabled a secondary discussion to set up a separate ordinance for pedicabs, which are pedal-operated vehicles that serve as taxis.
“I want taxicab companies to compete with companies like Uber more efficiently,” Councilmember Scott Newton said at the meeting.
Pismo Beach’s taxicab regulations haven’t been updated since they were adopted in 1964. Staff proposed an ordinance update to reflect not only current city practices but also changes to state law in the form of California Assembly Bill 1069.
Enacted in 2019, the bill allows permitting flexibility, meaning cities and counties must allow a taxicab company permitted in one jurisdiction in the county to operate in other jurisdictions in the same county.
Local agencies also can’t impose a limit on the number of taxicab permits issued. Moreover, the permitting process—while including background checks—must be clear and not unnecessarily difficult. Operators must meet specific insurance requirements under state law.
According to Pismo Beach Police Department Cmdr. Dan Herlihy, Arroyo Grande-based Central Coast Taxi is one of the few taxicab businesses left in the county.
Central Coast Taxi owner and driver Sammy Orr has run the company since 2014. While business is steady, Orr told New Times, the company’s call volume has decreased over the past 10 years with the rise of Uber and Lyft.
“It’s kind of a challenge to find people that want to be taxi drivers,” he said. “It’s just so much more convenient nowadays for someone to become an Uber or Lyft driver because they already have the vehicle with them. They don’t have to drive to a location to pick it up.”
Orr observed that on weekends, people going in and out of bars and restaurants are more likely to call Uber or Lyft because they’re readily available at the time. But it’s late-night pickups and drop-offs—especially to and from San Luis Obispo airport—that make up the bulk of Central Coast Taxi rides.
Pismo Beach Councilmember Scott Newton made a similar remark at the City Council meeting.
“I know in our city, try to get an Uber at 10 p.m. Nearly impossible,” he said. “So, taxicabs sometimes become your only option. Same thing if you want an early ride to the airport. I just want that avenue simplified.”
One way to simplify the ordinance, Assistant City Manager Mike James told council members, would be to update it with the state’s requirements, effectively removing the need to duplicate permits across neighboring cities.
Current Pismo Beach practices scheduled to take effect in July state that the city will charge $274 for new taxicab operator background checks. Permit renewals will cost $103, and the city will charge $34 for vehicle inspection. Complying with state law, no action and fees will be required if the operator has a valid permit from another city.
The council will deliberate proposed lowered rates at a later date. Δ
This article appears in Winning Images 2025.
Even subsidizing taxi service would be cheaper than a fleet of unused and inconvenient RTA busses. Door-to-door public transportation is the best option for getting people out of their cars. Robotaxis should be encouraged and planned for.