Crains New York - August 13, 2012 - (Page 6)

THE Taxi apps may fuel better rides INSIDER But city regs block road: Um, cabbies can’t use cellphones BY CARA EISENPRESS Raising your arm is no longer the only way to hail a taxi in this town. A cluster of mobile apps that can locate a yellow taxi in a rainstorm, match stranded outer-borough passengers to nearby cabs, or bill a week of travel to your boss has descended upon the highly regulated industry. With GPS devices in every cab and smartphones in most New Yorkers’ pockets, it’s no surprise that app makers want to push the taxi industry into the mobile era. The Taxi and Limousine Commission has slowly slid out the welcome mat. By November, the commission is expected to select a single app from a number of proposals submitted in June as the official mobile tool to pay fares. Extra features, such as electronic hailing, improve an app’s chances of being selected, according to the request for proposals. But the burdensome rules that govern city cabs may shackle the plans of the software makers,starting with the RFP process itself: Handpicking one winning app could stifle competition-driven innovation. “We think that having a marketplace of applications instead of a single supplier is the best way to guarantee that the riding public and the drivers get the best applications,” said Jay Bregman, creator of TLC app entrant Hailo. Deputy Commissioner Ashwini Chhabra said,“Where necessary, we will update our rules to reflect new technologies.” ‘A market ... instead of a single supplier is the best way’ exclusive right. And even having the word “taxi” in an app may draw the ire of the TLC. One app maker, who felt his software did not run afoul of taxi regulations, was flagged by the TLC and told to submit what he believed was proprietary information. Inflexible rules have kept Uber, a dispatch company that works with livery cabs, on the sidelines of the yellow-taxi industry. CEO and cofounder Travis Kalanick said updated guidelines would signal whether Brooklyn contender bides his time hile City Councilman Daniel Garodnick is up and running for city comptroller, his colleague and assumed opponent Domenic Recchia Jr. (pictured) continues to bide his time. Mr. Recchia, D-Brooklyn, is raising money and has nearly as much cash as his potential rival, but does not appear close to making an announcement. “I believe the reason Domenic hasn’t been specific is because he’s been trying to decide whether to run for comptroller, borough president or retire to his law practice,” one insider said. Mr. Recchia’s outside income has long been among the highest on the 51-member council. But one source close to Mr. Recchia said it’s a matter of timing: “He thinks it’s a little premature to be so aggressive.” Declaring his candidacy “might make him a target,” the source added. “I don’t know if it makes sense for Domenic to show his cards so soon.” Comptroller John Liu is not seeking re-election and is expected to run for mayor. Mr. Garodnick, D-Manhattan, had $781,000 in his campaign account at the midJuly filing, while Mr. Recchia had just over $700,000. W CRAIN’S Business Breakfast Forum: Pols seek noWalmart pledge After the Related Cos. and Sterling Equities said there won’t be a Walmart at their Willets Point development, several Brooklyn officials asked Related CEO Stephen Ross to make a similar pledge for an East New York development site. Assemblywoman Inez Barron and City Council members Charles Barron, Letitia James and Erik Dilan asked that the retail giant be excluded from Related’s Gateway II development. Related got final approval from the state last month to move forward with Gateway II. The company has not finalized its tenant mix for the project, a spokeswoman said. But the Meet Joseph Lhota CHAIRMAN AND CEO, MTA Join Crain’s New York Business for a discussion with Joseph Lhota, Chairman and CEO, Metropolitan Transportation Authority (MTA). Mr. Lhota will discuss the MTA’s mounting debt, the upcoming fare hike and his plans to upgrade the nation’s largest transit system. He will be questioned by Crain’s Assistant Managing Editor Erik Engquist and another journalist from the media. DATE: Wednesday September 12, 2012 PLACE: The Plaza 768 5th Avenue TIME: Networking Breakfast: 8:00 - 8:30AM Program: 8:30 - 9:30AM SPONSORED BY: Liu unusually quiet on city tech project City Comptroller John Liu has aggressively criticized city contracts with technology firms. He helped uncover the CityTime boondoggle and management flaws in the 911 system overhaul, and negotiated with the Bloomberg administration for a $93 million cut in tech contracts. But last week’s announcement of a Microsoft-engineered data surveillance system for the Police Department drew barely a peep from the media-seeking Mr. Liu. The system’s budget is $30 million to $40 million. A mayoral spokesman said, “[The] comptroller’s office has the information on the agreement with Microsoft.” Mr. Liu is not planning an audit. Microsoft will market the technology to other cities, with New York receiving 30% of the revenue from those sales. COST TO ATTEND: $95 for individual ticket(s). $950 for table(s) of ten (10). You must be pre-registered to attend this event. No refunds permitted. Pre-register online by going to crainsnewyork.com/events. For more information, call the Events Hotline at 212-210-0739. REGISTER HERE: www.crainsnewyork.com/events-jlhota HOST SPONSOR: planned large-format retail center differs greatly from the proposed Willets mall. The Queens plan calls for an enclosed retail and entertainment complex that would not accommodate a Walmart. For sponsorship opportunities, please contact Trish Henry at 212-210-0711 or thenry@crainsnewyork.com For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider 6 | Crain’s New York Business | August 13, 2012 bloomberg news gettyimages Fighting change Among New York’s rigid regulations: Cabdrivers are prohibited from using cellphones while driving. Yellow taxis can’t have pickups reserved in advance, and apps that help riders arrange pickups may flout the rule giving livery cars that his company could grow here. “We’d love to participate on the taxi side,” Mr. Kalanick said. “But we’re not going to roll out a product that’s all hype.” The taxi industry is known to fight change. Cabbies protested the use of credit-card machines, for instance. Now that fleet owners can collect 5% from the charges, they are likely to fight developers whose apps threaten to cut into their revenue.At stake is a share of the more than $6 million in fares generated each day. Matthew Daus, a former TLC commissioner and current president of the International Association of Transportation Regulators, said his organization will release a model of taxi app regulation in November. The proposal could tame the “Wild West” of new apps while accounting for the complexity of today’s mobile universe. “Saying it’s the Wild West is an understatement,” Mr. Daus added. Israeli-based Get Taxi, which streamlines payments and directs users to other transport options when no cabs are available, is willing to partner with the TLC to help the regulator “take the leap and make this happen,” said Jing Wang Herman, CEO of Get Taxi’s U.S. venture. She also happens to be a licensed hack. The winner of the app RFP is required to launch within four months of being chosen, but one industry insider speculated that, given all the roadblocks, the commission may scuttle the selection altogether. by Andrew J. Hawkins and Shane Dixon Kavanaugh http://www.crainsnewyork.com/events http://www.crainsnewyork.com/events-jlhota http://www.crainsnewyork.com/insider

Table of Contents for the Digital Edition of Crains New York - August 13, 2012

Crains New York - August 13, 2012
Table of Contents
IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
CORPORATE LADDER
OPINION
GREG DAVID
REAL ESTATE DEALS
FROM AROUND THE CITY
REPORT: SMALL BUSINESS
THE LIST
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - August 13, 2012