The Anchorage Assembly held a work session Thursday to review proposed changes to taxi regulations that would mandate smart meters for all dispatch systems and double the maximum fare cap.

The ordinance would require all taxi dispatchers to switch from mechanical meters to GPS-based smart taximeters. As of February 2026, all dispatchers except Alaska Yellow Cab were already using smart taximeters, making the mandate a catch-up for one company rather than a sweeping change. The maximum fare cap would increase from $3 to $6 per one-tenth mile, though dispatchers set actual rates and historically raise them slowly.

"The reason we went with the $6 cap is because anytime we asked for a cap increase we have to change the city code, and then we did not want to have to come back to the assembly on an annual basis to do that," the Transportation Commission chair said.

The smart meter requirement would eliminate costly manual calibration rides that currently require multiple staff hours and vehicle owner expenses. Every time Yellow Cab raised its fare rate in May 2025, the Transportation Inspection Division had to conduct meter runs on more than 200 cabs, each taking about 15 minutes if the calibration went smoothly.

Carrie Dalton, transportation inspector, said smart meters use software, GPS and mobile technology to calculate distance and fares. Traditional mechanical meters connect directly with the vehicle. The digital meters can be updated remotely across an entire fleet, while mechanical meters cost about $650 to replace when they break.

Yellow Cab representatives told the commission they were comfortable with the transition and asked only for adequate time to train drivers. Dalton said the company has been researching new vendors and has not expressed concerns about cost increases.

The fare cap increase does not guarantee drivers will see higher pay immediately. It took Yellow Cab 15 years to reach the current $3 cap, and the fare rate has increased only 75 cents total over that period. Dispatchers must give 30 days public notice before raising rates.

The fare increases go directly to drivers, not dispatchers. Drivers pay monthly dispatch stand rent but keep the fare revenue. The Transportation Inspection Division has seen permits turned in each year because drivers cannot earn enough money. An assembly member highlighted the broader regulatory constraints facing drivers, referencing state-level preemption of local authority over transportation network companies.

The Transportation Commission held six public meetings over an extended period to develop the comprehensive rewrite of Title 11 vehicle-for-hire rules. The meetings included stakeholders from the commission, the Transportation Inspection Division, permit owners, chauffeurs and members of the public.