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Pandemic pushes half of San Diego's taxis off the road

Businesses that serve the tourism industry are particularly hard hit.
Credit: Getty Images/iStockphoto
Yellow taxi sign illuminated at night

SAN DIEGO — The number of San Diego taxi drivers who called it quits recently rose faster than the average unemployment rate, as the hospitality and tourism industry continued to bear the economic brunt of the pandemic.

The Metropolitan Transit System (MTS), which issues taxi medallions for nine of the county’s cities, said 522 of the region’s 850 permits have been temporarily surrendered. Of those, 425 were surrendered between March 1 and May 9, including 144 in the last week of April. By comparison, just 42 permits were surrendered during the same eight-week period of 2019.

Medallion owners can request MTS reinstate their permits for free, at any time, if they can pass a vehicle inspection and provide proof of insurance.

MTS said it is trying to assist drivers. It allowed permit holders to defer $400 of the usual $600 regulatory fee to September 1. The agency also lowered minimum insurance company standards, which gives permit holders more options for companies to buy policies from, possibly at a lower cost.

Several drivers said they were still unable to afford insurance and radio dispatch fees because of a substantial decrease in customers, so they decided to temporarily suspend their permit.

The San Diego Association of Governments estimates unemployment in the county was at 28.7%, or 490,000 people, for the week ending May 2. Businesses that serve the tourism industry are particularly hard hit as travel to and from San Diego International Airport was down 96% at the pandemic’s April peak.

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