Original Cab: The History of Minneapolis Taxi Transportation

The early motorized taxi era

Minneapolis entered an age of expanding automobile passenger transportation.

Downtown hotels and other commercial destinations began accommodating motorized taxicabs.

The original Radisson Hotel, which opened in December, incorporated a purpose-built taxicab stand.

These developments provide documented evidence of the city's early taxi infrastructure.

Organized taxi fleets become established

As automobiles became more widely available, organized taxi companies developed dispatch systems, distinctive vehicle appearances, passenger fare arrangements, and regular operating areas.

Some companies established recognizable fleet identities that continued influencing the Twin Cities taxi market for generations.

Minneapolis also became a market where vehicle identification and operating rights could carry substantial commercial importance.

The growth of centralized taxi dispatch

Traditional taxi operators increasingly organized vehicles into fleets with central dispatching arrangements.

Passengers contacted companies through telephone operators, while drivers used dispatch instructions and established vehicle stands.

Taxis became part of the transportation network serving hotels, downtown businesses, railway connections, medical appointments, and residential neighborhoods.

A highly regulated industry

Minneapolis limited the number of operating taxicab licenses.

The restrictions protected the value of existing operating rights while limiting opportunities for some new entrants.

The system became the subject of recurring disagreements over competition, consumer access, service availability, and the economic value of taxi licenses.

Taxi companies participate in coordinated mobility services

Historical Minnesota transportation reports document taxi companies participating in organized passenger mobility programs.

These arrangements illustrate that taxis served more than spontaneous street-hail passengers and were already participating in structured transportation programs.

Minneapolis reforms its taxi-license system

Minneapolis approved reforms that gradually increased the number of taxicab licenses.

The reforms challenged a long-standing system of restricted market entry.

Established taxi owners challenged the changes, while supporters argued that removing the cap would create more opportunities for independent operators and passengers.

Federal appellate court upholds the reform

The Eighth Circuit Court of Appeals upheld the city's taxi licensing changes against a legal challenge brought by taxi license holders.

The litigation became an important chapter in the history of Minneapolis transportation regulation.

The taxi-license cap ends

Minneapolis completed the phaseout of its numerical cap on taxicab licenses.

The change allowed qualified new operators to enter a market that had previously limited the total number of cabs.

More competition did not immediately eliminate traditional taxi companies, but it changed the economics of the market.

Smartphone rideshare enters the Twin Cities market

Uber and Lyft introduced technology-driven transportation services that significantly changed how customers requested rides.

Customers could arrange transportation through mobile applications, view driver locations, receive estimated arrival information, and complete electronic payments.

This challenged the traditional telephone dispatch business model.

Minneapolis records approximately 1,385 licensed taxis

Historical city figures reported in 2024 identify 1,385 licensed taxi vehicles in Minneapolis in 2015.

The city also had approximately 1,676 licensed taxi drivers.

These figures represent the industry near its modern recorded peak.

Traditional taxi numbers decline dramatically

App-based transportation became increasingly established across Minneapolis.

Traditional taxi services faced reduced passenger volume in some market segments, increased competition, driver migration, and changing booking habits.

Some taxi operators adapted by emphasizing advance reservations, business accounts, and specialized transportation work.

Only 14 licensed taxis reported in Minneapolis

Minnesota Star Tribune reporting identified just 14 licensed taxi vehicles in Minneapolis in March 2024.

Contemporary reporting also identified 39 licensed taxi drivers.

The driver figure should not be confused with the vehicle count.

Those figures demonstrate the industry's substantial contraction from its 2015 peak.

Rideshare wage regulations become a major debate

Minneapolis considered how rideshare driver compensation should be regulated.

The possibility of major rideshare services leaving the market briefly renewed questions about whether traditional taxi operators could fill any service gap.

The much smaller taxi fleet raised questions about how quickly it could expand.

Autonomous vehicles begin testing on Minneapolis streets

Waymo began testing vehicles in Minneapolis with human drivers present during testing.

This introduced another potential competitor to conventional taxis and human-driven rideshare services.

Minneapolis debates autonomous passenger transportation rules

The Minneapolis City Council failed to override a mayoral veto of proposed autonomous rideshare regulations.

Supporters sought human safety monitors and additional local oversight requirements.

Opponents argued that the proposal would restrict emerging transportation technology.

At that point, Waymo had not yet begun offering public passenger rides in Minneapolis.