INDUSTRY IN REVIEW

By Don McCurdy

Don't worry.

A recent article out of Nueva York City has the TLC telling the drivers not to worry about proposals from the new mayor regarding their speed because the technology doesn't exist...Yet!

NYC taxicab regulations are a constant source of amusement for me, especially since I don't live there, but we have now achieved regulatory Nirvana. Interesting things like if the driver speeds it stops the meter or alerts the passenger.

Excuse me? Most passengers want the driver to speed so they can get where they are going on time even though they started out ten minutes late. The good intentions are reducing the number of accidents and pedestrian assassinations which is certainly a laudable goal, but it sure looks like the pavestones to taxicab driver hell.

When you deal with the devil.

In my lifetime, I have seen numerous decisions by politicians dramatically affect the lives of the citizenry without so much as a "oops, sorry." A recent decision by the Toronto City to radically alter their plate system is one of those times.

I can't say I feel sorry for the absentee owners of numerous vanity/specialty/ambassador plates or the police captains' wives that magically made it to the top of the plate list, but there are always a few genuine heartbreaks in any change of this magnitude.

It would appear that the city has finally worked out a plan to put license plates in the hands of actual drivers. The plan? Rather than middle man plate holders, that just happened to get into the industry before everyone else, or whose great granddaddy was smart enough to buy up some plates while they were cheap, provide plates to the actual driver.

I have long believed that Ambassador plate drivers should be able to have a relief driver, but disagreed with the idea that they should be able to sell their plate. The nonsense that it was racial or somehow a "human rights violation" was more than my brain could absorb.

Like any deal you make with the government, it is subject to change when the office holders change. Which makes you wonder how sound other medallion investments are. Recent changes to NYC's "borough taxicabs" and other changes might have some investors fidgeting, but what changes could a new mayor or council make? Stay tuned.

Was that a pocket veto?

Mayor "Wild Bill" de Blasio has named the Taxi and Limousine Commission's former General Council to head the TLC. Meera Joshi will have to be confirmed by the city council, but I doubt they will deny Wild Bill his selection. All that said, the delay in selecting a head of the TLC has put off any public hearings the group could have on the agreement to have half the NYC taxicabs wheelchair accessible by 2020. If no hearings are held then the accessible deal could fall through.

Oops. Since Wild Bill got a lot of cash from the taxicab industry who can't be happy about the wheelchair deal. It comes as no surprise that there was no rush to appoint a new chair to the TLC. Wild Bill did say that Ms. Joshi was "fully committed" to the 2020 wheelchair plan though. I wonder if that has the same meaning as when a baseball team owner comes out and says he has "full confidence" in his manager? Time will tell.

Say what?

The head of the Pennsylvania Public Utilities Commission Robert Powelson is quoted as saying that "there are regulatory rules you have to play by" for Uber and Lyft.

Unlike California, who is reported to have developed an entirely separate set of rules for the app based companies, Pennsylvania regards them as needing to comply with the same standards as taxicabs. Duh. Everybody is mouthing the happy talk right now, but it will be interesting to see how it goes when the rules start applying to Uber and Lyft and their hands off attitude toward drivers and permits ferments.

They say every man must need protection.

Austin Texas taxicab drivers are reported to be asking the Austin City Council for a little protection. Nope, not from armed robbers, fare jumpers or credit card cheats, but from the taxicab companies. The taxicab companies?

Drivers claim they are unfairly fired and are required to pay too much in lease fees and they'd like big bro to step in and reign in the evil empire. Further, the company doesn't provide the drivers with health insurance.

Well, the root of the problem would seem to be driver's independent contractor status. If you enjoy the freedom of being an independent contractor there are some consequences. The consequences are that you are self employed. Being self employed means paying for your own benefits. Don't get confused, the taxicab business is rough and you won't make it needing protection because it ain't coming. Keep a good thought though.

So, these are the smart guys?

Milwaukee, Wisconsin, one of my favorite stops on liberty, decided to increase the number of taxicab permits by 100. One of the aldermen guessed they would be lucky to get a hundred applicants. Oops. Reports are the city received 1,706 applications. Sounds like the city is about to see an surge in new businesses. Who would have thought?

Well, if an individual can apply and doesn't have to pay a lease to a company that provides little or no added value, why not? In this day of cell phones and GPS, drivers can do a reasonable business if they act in a professional manner, keep a decent vehicle, bathe regularly, and provide good service.

The companies are often an unnecessary middleman the driver has to pay to do business simply because the city finds it easier to regulate companies rather than individuals. It will be interesting to see how this expansion is handled by the drivers, city and companies.

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

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