INDUSTRY IN REVIEW

By Don McCurdy

I'll be watching you..

San Francisco taxicab drivers are a little tweaked these days. It seems the 5% fee on credit cards isn't the only thing. The taxicab companies have new tracking software, I assume for the storage of GPS and meter information although the article didn't specify, and the drivers are concerned that this information can be used by "third parties." By "third parties" I'm guessing, they're talking about the IRS.

Hardware and associated software are available that can store pickup and drop off locations along with the meter amount. It would be a simple matter for the IRS to obtain those records and compare them to the reported income, or lack of same, for San Francisco taxicab drivers. It may turn out that voice dispatching is the wave of the future if the IRS finds out that computer data on driver income is readily available.

It's all wonderful to have fast fair dispatching and all but storing driver income data has a serious potential downside for the size of the fleet. If you managed to gather all of the taxicab drivers in the US who carefully documented their income to the IRS you may not end up with enough cabs to service San Francisco.

Where'd they get this guy?

The new head of the Chatham Area Transit Authority (CAT), Chadwick Reese, in Savannah wants to provide matching funds for taxicab companies to purchase wheelchair accessible taxicabs. It seems that the CAT Teleride program is expensive and rigid requiring a day notice to provide a ride. Potentially, this program could provide a service to the wheelchair bound community if the program is allowed to proceed.

You may recall other such services, Capital Metro in Austin Texas jumps to mind, have removed the taxicab portion of their handicapped transportation. While the Austin case has made it to the courts Chadwick can't believe that the CAT's union drivers are going to stand still for some of their jobs going to independent contractor drivers at taxicab companies. Where's that grievance form?

"And that's that."

Santa Monica California has passed an ordinance outlawing taxicab drivers from giving kickbacks to hotel doormen. Yawn. And? Well, a recent article from Reuters begs the question as to why drivers give doormen kickbacks. The writer speculates that it's because the trips are "set above market clearing price," whatever that means.

Let me help you here. The driver gives the doorman a kickback because the doorman will simply pass the driver over and give the fare to the next guy in line if the driver doesn't play ball. Is that too simple? Next hard question, why does the practice continue even though there is a law against it? Well, it's because a law doesn't mean anything unless it's enforced. Until Santa Monica figures out how to enforce their new law it will be meaningless.

Better living through government

Well, there they stand, on the streets of the outer boroughs flagging a car service. Yeah, it's illegal, but there is a need for a person willing to fill that need. Well, yeah, except for one minor thing, the government.

Yep, the NYC TLC is on the job protecting the public from convenient transportation alternatives. Street pickups by nonyellow cabs isn't legal until the city sells you a medallion to do it even though the current proposal to permit borough street hails is on hold. But not yet, only after the benevolent protector of all that is good gives the nod.

First, of course, the city will want to wet their beak with a little "off island" medallion money. So, for a one time shot in the fiscal arm the good citizens of NYC will pay higher "off island" rates in perpetuity. Of course, we have to set the table with a few hundred fines for "illegal" pickups by livery cars. So, you send out the enforcers, strong arm a few hundred grand and then sell protection, medallions, to the suckers. Sounds like a natural for NYC.

I guess a simple country boy like me just doesn't understand the sophisticated workings of the big city, but I know one thing, every law makes a criminal.

Nothing from nothing leaves nothing

In what I would call the cornerstone of why the stimulus bill didn't stimulate job growth the city of Chicago announced a grant from the stimulus bill to help "green" the taxi industry. Yep, the city will chip in 2k for a hybrid and up to 14k for natural gas powered vehicles.

Yes, it's true, the federal government, who is broke, is giving money to Chicago, who is broke, to fund "green" taxicabs. Are you wondering why exactly it is that both are broke? Is that America's priority, green taxis? I'm for sound ecological policy and sound fiscal policy.

When times are hard at my house we have to prioritize, but not the government. They can have it all. Who is going to stop them? As long as we keep electing fiscal idiots we will continue to go broke. It's not just one of the political parties, it's both. The good news is that it'll green up the country when a bunch of us starve to death so we can use corn to power our cars.

Speaking of stimulus.

It's been reported that the former head of the state office that regulated the receipt and spending of federal stimulus funds for Nevada has been named administrator of the state's Taxicab Authority in Clark County. While the article stated no qualifications for the job beyond him being a "veteran government employee" it did say that that he would be in charge of the 900 drivers who drive 3000 cabs in Clark county. 900 drivers driving 3000 cabs? It seems the reporters are at least as knowledgeable as the new administrator regarding the taxicab business.

Speaking of Chicago

In a low key story a former Chicago city employee convicted of running over a taxicab driver in 2006 and sentenced to 15 years in prison was released last month. Michael L. Jackson served less than half of his sentence for killing the taxicab driver over an $8.00 fare. So, while city rushes to prevent the good citizens of Chicago from arming themselves the city's employees kill them off. Now, this sounds like exactly why the founders put the right to bear arms in the Constitution to begin with. I'd say the city was corrupt but I don't think corrupt covers the level of disease the city has developed.


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