INDUSTRY IN REVIEW

By Don McCurdy

In a perfect world

NYC has a plan, according to published reports, that will enable a wheelchair customer to get a taxicab in “20 to 30 minutes.” Now, I don’t want to rain on anybody’s core beliefs or anything but that level of service would be fantastic if it can be achieved. The tone of the article seemed to be that a 20 to 30 minute wait for a wheelchair cab was unacceptable, but the writer of the reports has obviously never been involved in the logistics of providing such a service. A 20 to 30 minute wait for on demand wheelchair service would be the best I’ve ever heard tell of. Perhaps, the idea that progress is a lot more possible than perfection would help him understand what a giant leap forward 20 minute service would be.

I’ll sue!

It’s being reported that Chicago taxicab drivers are upset. Chicago taxicab companies have been charging 5% on all credit card slips including the tip amount. While I don’t give the case a whole lot of hope you can never tell about these things. If the Chicago law says the companies may charge 5% of the “fare” then the drivers could have a case. It will be interesting to watch the process unfold.

So what is it worth?

Las Vegas is reported to have had a recent protest march by union taxicab drivers for Frias Transportation. What the disagreement seems to boil down to is the value of seniority.

The union says seniority is king, while the company wants to figure seniority into a formula with revenue generation to determine a driver’s position in the pecking order. While I can see the validity of the argument from both sides it occurs to me that, as a manager, I looked at seniority as highly important even though I managed at companies that used independent contractor drivers rather than the employee drivers that Nevada companies have.

Why so? Well, veteran drivers have fewer accidents, require the barest of refresher courses in the way of training, already understand the business, know how to generate revenue on their own, and know what the limits of their behavior is supposed to be. As a general rule, drivers with over five years in the business have adjusted to the lifestyle taxicab driving can become. They’re not likely to wander off to another trade unless it involves driving of course.

Green drivers are more likely in accidents and incidents that they have not yet learned to avoid. Some are unable to survive long enough to learn enough about the business to make a living. I don’t know how their contract negotiations will go in Las Vegas, but for me seniority is important.

They just don’t get it.

While I don’t usually comment on other than North American taxicab issues I once worked for an Australian company that provided equipment for the taxicab industry and came to understand a bit about the industry in Australia.

Recently, the Independent Pricing and Regulatory Tribunal in Sydney, Australia came out and said that Sydney needed more taxicab licenses to provide better services and cheaper fares. He said that what was needed was “the right number of cabs.” Really? Much discussion has been had relative to the issues involving the proper delivery of prompt service, not the least of which is ingrained in Sydney’s taxicab culture.

Like all cities, Sydney has developed its own taxicab culture, some of which is extremely detrimental to customer service. As a Communications Manager I had the opportunity to experiment with a variety of information that is given to taxicab drivers prior to them accepting a trip, computer dispatching. I found that if you offered information like the trip was for a handicapped person some drivers would reject the trip if there was other cash business available.

One other such piece of information was whether the trip was going to the airport. The theory being that the driver would pay special attention if they knew the trip was to the airport. Well, they did. They did it so well that they would reject any trip that didn’t show the airport as the destination. Therein lies the rub for the Sydney industry. They offer the complete trip information, including destination, in the trip offer. If the driver doesn’t like the length or value of the trip he simply rejects it and waits for a more acceptable or lucrative trip.

Driver “advocates” claim this improves service, but my own tests have shown quite the opposite. A few years ago the local regulators came out with a “no destos” initiative but caved to the drivers' demands and reinstated destinations in the trip offer. My own opinion, worth all you paid for it, is that Sydney really doesn’t need to put out more licenses, but just more political spine. But that is certainly a rare commodity.

Is you is or is you ain’t?

When is a taxi not a taxi? When it’s Uber of course. Amazingly enough, Uber is blowing open markets that have been locked down for decades. A DC councilman has suggested Uber have non regulated fares. What? While the rest of the DC taxicab world is being more tightly regulated Uber gets special legislation allowing it to charge whatever it pleases?

How can you want to regulate and deregulate in the same breath? Which is it, admiration for the upstart, free market company or an overwhelming need to regulate the industry? If Uber is okay to set its own fares why can’t other taxicab companies? Now, should we go over my disagreement with politicians regulating free enterprise again?

Speaking of that free market dynamo, Uber, it's getting sued by Chicago taxicab companies. While I don’t see the suit doing anything but costing Uber some legal fees or, perhaps, an opportunity for local companies to wet their beak, it does point up the idea that it is possible to creatively overcome regulation. Operating within the scope of the regulations or at least exploiting loopholes in regulations also points up what may be possible but for regulation. While some view regulations like taxicab limits and price fixing like safety nets for the industry, companies like Uber show that such regulations can be limiting to the size and scope of the market.

They wouldn’t do that, would they?

Well the courts will decide if the NYC Taxi and Limousine Commission is deliberately attempting to lower medallion prices in an effort to punish yellow cab medallion holders who sued the city and killed the outer borough livery pickup scam. Oops, did I call it a scam, I meant plan.

Reports seem to indicate that there are some who seem to believe that Napoleon Bloomberg would have teamed up with TLC head David Yassky to sink medallion prices simply because medallion holders opposed the outer borough plan. I mean really, just because the guy went around the city council, had to coax the legislature and had to kowtow to the governor doesn’t mean his ego is tied up in the case. Isn’t that more the norm now rather than the exception, the executive branch circumventing the legislative branch? Why, that’s positively presidential.



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