Title
Taxicab Services Request to Award Contract - District 8
Description
This report requests that the Transportation, Infrastructure, and Planning Subcommittee recommend to the Phoenix City Council to execute a contract with VIP Taxi Airport LLC for taxicab services at Phoenix Sky Harbor International Airport (PHX).
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
The Aviation Department is proposing to enter into a four-year taxicab services contract for the traveling public at PHX. The Aviation Department's two existing taxicab service contracts expire in April 2031, and a third contract is necessary to ensure adequate taxicab services remain available to the traveling public.
Procurement Information
The Aviation Department issued a Revenue Contract Solicitation (RCS) in June 2025. Two proposals for small company operators were deemed responsive and the Aviation Department entered into contracts in May 2026 with Mayflower Cab Company, LLC and Apache Taxi LLC, each consisting of 35 vehicles. No responsive large company operator proposals were received, and the resulting contracts did not provide the desired number of vehicles to meet customer demand. The Aviation Department took two actions to ensure continuity of taxicab services:
- First, the Aviation Department entered into month-to-month agreements with the three incumbent taxicab companies, MTM (formerly AAA/Yellow Cab Taxi, LLC), Mayflower Cab Company, LLC, and VIP Taxi Airport LLC to remain in effect until a new solicitation was issued and contract is executed.
- Second, the Aviation Department issued a new RCS for taxicab services. One responsive proposal was received that offered a fleet of 35 vehicles.
Solicitation responses were evaluated on the following criteria:
- Business & Operations Plan
- Qualification & Experience of Respondent
- Qualification & Experience of General Manager
- Customer Service Plan
- Driver/Owner-Operator Plan
Contract Term
The contract consists of an initial term of four years with one two-year option to extend. Current month-to-month service agreements will be terminated upon execution of the new contract. The contract is expected to commence on or about January 1, 2027.
Financial Impact
Based on the current projected demand for taxicab services, revenues are estimated to be $715,000 annually and $5 million over the aggregate contract term.
Concurrence/Previous Council Action
The Business and Development Subcommittee of the Phoenix Aviation Advisory Board recommended approval of this item on October 1, 2026.
The Phoenix Aviation Advisory Board recommended approval of this item on October 15, 2026.
Public Outreach
The process included all standard and required outreach efforts to attract interest from small businesses, including Business Information Meetings and digital advertising initiatives.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune and the Aviation Department.