A town in the U.S puts a cap on the number of limo hire companies

The town of Boonton in New Jersey, U.S.A, has approved a new scheme which will limit the number of limo hire companies allowed to operate in the area to just 17. The number of taxi firms permitted will be just 2. It comes after the town noted a sharp increase in the number of these businesses seeking licenses to work within Boonton.

Boonton limits limo hire licenses

Boonton limits limo hire licenses

Only one man on the Board of Alderman who passed the legislation took a stand against the proposal. He states his reason for doing so was as follows: “I personally believe it should be up to the free market.” However he was out voted with a margin of 1-7.

The new rule has been set in order to avoid administrative errors and issues which can occur as a result of having to maintain such a large portfolio of limo hire companies. Another condition which has been added to the criteria of obtaining a license is that the license holder must be a resident in the town and run his/her business from Boonton. Although Boonton has 17 limo hire companies licensed in the town, it hasn’t a single taxi service currently in operation.

The head of the town council said he was puzzled by the dramatic rise in the number of limo hire companies seeking licences in his area as the limousine industry has been struggling under the current economic climate. He has come to the conclusion that limo hire businesses were flocking to Boonton as their licensing laws were slacker than other towns, it is hoped that the new scheme will put an end to that theory.