INDUSTRY IN REVIEW

By Don McCurdy

What exactly is a "right?"

Cedar Rapids, Iowa is considering allowing taxicab drivers to carry firearms if they are properly licensed. Really? Why in the world would anyone prevent persons from exercising their rights simply because they drive a taxi?

The article had the usual anti firearm arguments, but the discussion had the untimely murder of a local taxicab driver as a backdrop. How is it that the city of Cedar Rapids is not complicit in the murder of the driver if the city prevented the driver from protecting herself? Can you imagine the outrage if the city decided that the drivers must say a prayer before every shift? Or, perhaps, taxicab drivers didn't have Miranda rights and must confess to any crime they're accused of?

Are taxicab drivers not entitled to the same rights as any other business owner? Yes, business owner. Most taxicab drivers are independent contractors and their vehicle is their place of business. Does the city of Cedar Rapids disallow store owners the protection of their legally licensed firearms? While there may be many reasons a driver might not want to carry a firearm the choice should be the driver's not the city or state's. Either that or mandatory prayer should be implemented to try and implore God to protect the city's taxicab drivers since the city seems unwilling to allow them to protect themselves.

'til you get it right.

Washington D.C. is again considering a medallion system. Say, didn't we just vote on that? Yes, we did. How many times do you think they'll vote on that subject? Well, last time the corruption scandal in councilman Graham's office derailed the effort as it should have.

The benefits of a medallion system are short term at best and lead to opportunities of corruption and higher fares. It's very simple. If a driver has to pay the 500k for a medallion the fare price will have to rise eventually as in NYC to cover the payments.

While the DC city council may make a short sighted decision to bring in some cash right now, the ramifications of their actions will live on well beyond their deaths. Currently, it costs around $200 to get licensed to own a taxicab in DC, a small price to pay to start your own business. Now, compare that to NYC where it's 600k+ to do the same thing. Now, why on earth would the DC city council want to crush a poor man's opportunity to own his own business?

What constitutes an employee?

Discussions abound in the taxicab industry as to where the line of control is for a driver to be an independent contractor versus an employee. While I have my opinion, I am not a lawyer, judge or IRS agent so my opinion is worth about as much as anyone else, but it would seem to me that NYC taxicab drivers are employees of the Taxicab and Limousine Commission.

The TLC controls every aspect of their operation setting fares, number of hours allowed, color of the vehicle, how many vehicles can be on the street, credit card acceptance, etcetera, to the point of forcing drivers to collect a fee payable to their competition. If any company tried to exhibit that much control over an independent contractor driver they would instantly be deemed employees by the IRS and the courts. I think NYC is just trying to get by without paying
healthcare cost for the drivers.

The latest bit of control exhibited by the city is the iconic taxicab award. Not only did mayor Blooperberg select a vehicle without a proven record of durability he selected a vehicle that hasn't even been made yet. I'm struggling hard trying to think of another business that is controlled to the extent the NYC taxicab driver is controlled by the government. Apparently the "free" in free enterprise is the fact that the city is free to do whatever asinine thing it wants in controlling the taxicab drivers without being found to be an employer.

While the mayor may be pleased about his selection some taxicab customers are not. The city is being sued as possibly violating the Americans with Disabilities Act. The sad part of the story is now the process will be delayed and nobody will be able to tell when their kickback will get paid.

A rose by any other name..

It's reported that Be My DD has expanded its operations to include Las Vegas. Be My DD is a designated driver service available in a couple of formats. One is to provide a driver who drives the customer's car at the astoundingly low price of $15.00 an hour. The other format is a driver on demand which costs $25, plus $2.95 per mile for the first 10 miles. Each mile thereafter is $1.50.

Now, I'm not sure about this, but I'll bet that Las Vegas could cure some of its taxicab service issues in residential areas if they had a $25 minimum. The absolutely amazing part of the story is that the politicians haven't stepped up to "protect" us (the taxicab driver) by requiring Be My DD to license itself or its drivers through the city like taxicab and limousine services are required. There are no vehicle requirements, age limits or any of the cadre of regulations deemed necessary for public safety in taxicabs or limousines. What's up with that? Looks like free enterprise at work.

A quick visit to their website and you'll notice that NYC isn't on the list of service areas or "coming soon" service areas. No joke, I wouldn't want to step into that morass either. The interesting part for me is how they've escaped the watchful eye of transportation regulators in the list of cities they do service. Next thing you know there won't be taxicabs except working the airport traffic. Okay, let's start the timer and see how long it is until they're regulated out of business. This much freedom can't last.


If you have any comments regarding this or any of my articles please feel free to contact me at dmc@mcacres.com. —dmc