Tesla's Electric Taxis Denied Licenses as New York City Protects Yellow Taxi Drivers

Tesla's plan to launch a fleet of electric taxis in New York City has been blocked. On June 22, New York's taxi regulator voted to prevent the issuing of new for-hire licenses for electric vehicles.

Tesla's Electric Vehicles Blocked

The Taxi and Limousine Commission or TLC voted five-to-one to block electric transit startup Revel from launching its planned 50 Model Y Tesla electric taxis.

The TLC argued that Revel can still operate if it purchases 50 gas cars and changes its licenses out for electric vehicles, which is a requirement that Revel called "the definition of limiting market competition."

TLC Chair Aloysee Heredia Jarmoszuk said that they found it unsustainable to allow an unlimited number of new vehicles to the road in a city that is known for its traffic condition, according to The Verge.

The commission does not want to allow another corporation to flood the streets of New York City with additional cars.

On June 21, the TLC posted a notice saying that the commission had already voted to stop issuing Tesla's electric vehicle licenses. The notice was posted in accordance with city rules.

The New York Post reported that both legal and transit experts stated that the notices do not typically use past-tense language, adding that it may have discouraged New Yorkers from weighing in on the issue at the hearing.

Frank Reig, the CEO of Revel, criticized the TLC's ban in a three-minute speech at the meeting, saying that in addition to its plan for environmentally friendly taxis, Revel offers its drivers better treatment than its competitors, Lyft and Uber, because it hired them as full-time employees and given complete benefits.

Reig added that they are offering what the TLC has been asking corporations for years: stable pay and fair treatment for drivers.

Revel raised $31.6 million from backers, including Toyota, according to Crunchbase. The electric vehicle company added that the TLC offered no evidence or analysis to support its decision to end the electric vehicle exemption.

According to Reig, the Commissioners sat through three hours of testimony on all sides but did not ask any questions nor spent any time deliberating before making a decision that has consequences on the company.

Reig accused the TLC of not considering what the drivers and the New Yorkers had to say and only cared about speeding up its vote on Primary Day.

Protecting Yellow Taxis

Meanwhile, the representatives of the New York Taxi Workers Alliance or NYTWA, and several taxi drivers praised the rule change that TLC issued, while the Independent Drivers Guild and activist groups including the Sierra Club and Tristate Transportation Campaign blasted it, stating that it would affect the climate change plans that they have for the city.

Last week, Reig was asked if Revel would ignore a potential TLC decision against the company and launch its electric vehicle fleet anyway. He said that the company's vehicles will still hit the streets.

Reig added that they would continue with their plan as they know that the law is on their side and that Revel has never operated illegally.

This article is owned by Tech Times

Written by Sophie Webster