Over the past few months I have seen a number of stories about LSVs being used as taxis in various cities across the country and see this use of LSVs as growing niche market.  One example is Chicago’s pilot project.

Sometimes the taxi service is being offered for free and generates revenue from on vehicle advertising.  In other instances, a government agency may be offering the service as a form of public transportation and as a “green” demonstration project.  Not surprising, they have also faced some opposition from existing taxi services.  Aware of potential conflicts with existing taxis and limited to lower speed roads, the LSV taxis are often allowed to operate in only restricted geographical areas.  There have also been instances where concerns about LSV safety in a mixed vehicle use environment or existing laws have prohibited businesses from operating LSV taxi services.

This story from Tampa, FL is an interesting example of how one operator avoided existing taxi regulations by not charging for the service and operating only on advertising and tips.