INDUSTRY IN REVIEW

By Don McCurdy

Well, one of them is right.

Honolulu has passed a cell phone ban. Colorado is considering a cell phone ban. So, what's the difference? Well, Honolulu has specifically exempted taxicab drivers while Colorado has specifically included taxicab drivers. Who has it right? Well, you could argue that all day and all night but in my opinion the state of Colorado has no idea what it's doing. Why not just ban all businesses from having a phone?

Colorado, like most other parts of the country, has mostly independent contractor drivers. These drivers often depend on their cell phones to make a living. The theory is that you provide better service, give the customer your business card and they call you back on your cell phone. Well, at least until now.

The really asinine part was the taxicab drivers were lumped in with eighteen year olds who were specifically excluded from using the phone at all while the average citizen, statistically a considerably worse driver than a taxicab driver, is allowed to use a hands free device.

Astoundingly, poor thinking there Colorado legislature. Clearly this is an excellent example of my firmly held belief that government has no business regulating businesses that it cannot understand. Which, in my opinion, is pretty much all of them. After all, look how government involvement in the mortgage business has improved all of our lives.


What was missed?

I had an interesting conversation with a taxicab driver in San Antonio. While there hasn't been a noticeable change in business from the stimulus package there was an uptick from the April 15th tea party. I can't help but wonder if that was the aim of the "stimulus package".

I have never been to a protest before so it was very interesting for me, especially since I was actually inspired to go as a participant. Imagine my surprise when I was reported to be anti-government, a racist, anti CNN, and a whiner. I have often marveled at media experts' ability to make up some meaning from a story that obviously misses reality.

I'm not going to tell you that I can speak for the motives of the other 15-20,000 participants, but I can speak to my motives. I have some concerns. The federal government is considerably beyond its Constitutional mandate and growing. The solution to every problem is money, tax money. It's not that they tax us, it's what they do with the money after they tax us.

Is it Obama? Hardly. The only discernable difference between Obama and Bush, fiscally, is Bush was borrow and spend while

Obama is tax, borrow and spend. Big deal, both of them and congress are spending the country into poverty. That's why I was there. With due respect to Janeane, which is pretty much none, honey when you get smart enough to figure out what's going on in your head then you can start guessing what's going on in mine. Of the many asinine comments I heard regarding the tea parties I can state unequivocally that Janeane's was easy the most offensive and the least accurate.

To those politicians that are just shining the tea parties participants on, like Astroturf Nancy, I hope you understand that we are your constituents and we're worried. Ignoring us would be exactly what you do best and the focus of one of our biggest complaints.


Where do they get this stuff?

Reports are that Park Ridge Illinois mayor Howard Frimark is being accused of some shady activity. Apparently, his honor's supporters voted down a request to allow another taxicab company to operate in the city after his honor accepted campaign contributions from Park Ridge Taxi, the only company with authority to operate in the city, and it's president. The soon to be new mayor David Schmidt made the allegation that it was a "clear example" of pay to play politics.

Well, first off, what other kind of politics are there? Second, why in the world wasn't Park Ridge Taxi donating to both sides? Third, if American Taxi, the new wannabe company, didn't know to "donate" to political campaigns they must be new to the industry. What this is really is a clear example of is why politicians shouldn't be regulating business. The simple fact is that as soon as politicians get around money they go to thinking it's theirs.


You have the right to remain silent.

It's been reported that the NYC Taxi and Limousine Commission is considering cell phone blockers in the front seat of taxicabs to keep the driver off the phone. The TLC, in its infinite benevolence, said that its subjects, er, drivers would be allowed to make emergency calls. So, how can you tell if an inbound call is an emergency call? What constitutes an emergency? In reality wouldn't it be more likely that the driver would receive an emergency call than to make one?

The article goes on to say that drivers MAY also get navigation systems, traffic reports, restrooms, gas stations and "relief stands." Relief stands? Would that be an area where the TLC didn't attempt to regulate their breathing? Gee wiz guys, I was with you on the credit card thing, but you're getting out of hand. Yes, a lot of drivers talk on their phones constantly, and they pay for it in tips, but a lot of drivers don't. Clearly this is a situation where the poor behavior of some is resulting in a loss of rights for all. I guess if it worke in high school the TLC figures it to do all the good in real life too.


Another fine mess.

Honolulu International Airport is having taxi problems. There is a straight forward system that Ampco Parking runs that costs $4 a load and there's the state run $100 a year plus 7% of the fare. The state system operates off a transponder system that opponents say has never worked properly and the 7% of the fare is paid by drivers on "the honor system."

The state is considering a new transponder system that might work this time. Now, I don't want to start thinking that I'm a sketic or anything, but exactly how much is this new boondoggle going to cost to include the taxis? Since nobody is auditing the "honor system" payments, how can you make an estimate on the return on this investment?

Oh, what was I thinking, it's not a business. I don't want to make this sound too easy, but how about if you skip the big contract with whoever's brother in law, and just raise the Ampco price to $5 and get the state a slice of the pie without the big outlay. No doubt the airport is already auditing the Ampco contract to make sure they get their cut so all you have to do is get a copy of that sent to you. I love simple solutions to complex problems.


The Revolution will not be televised.

Houston is mourning the passing of taxicab revolutionary Jerry Brady of Liberty Cab. Great name for the upstart company that stuck its thumb in the eye of the bid dogs of the day. Jerry was taxicab driver in the seventies and managed, despite opposition from the few existing companies, to convince the city to issue him permits, a considerable feat considering the political clout of his business adversaries. Although we were not friends, I met Jerry and had a deep respect for what he had accomplished. Jerry Brady was a clear example of the American dream being realized against staggering odds.

Rest in peace Jerry, those who come after you in the Houston taxicab business may never hear your name but they will undoubtedly reap the benefits of your struggle.


'Cause I'm the tax man, yeah the taxman.

It has been reported that New York, the state this time, has decided to put a $1.00 surcharge on taxicab rides in NYC and it's suburbs. The money is slated to go to the Metropolitan Transit Authority and half to highways and roads. Well, good onya. I especially liked the comment attributed to Veronica Vanterpool of the Tri-State Transportation Campaign, "It's important all these different parties realize there's a benefit for a strong mass transit system. Taxi drivers benefit from it too." Yeah, well how about the people who ride mass transit subsidize taxicab rides? Nobody would even consider that, but instead the state senate back doors a new tax and puts it on the taxicab drivers to collect it? How is it fair that only people who ride in taxicabs pay?

Arguably you are requiring taxicab drivers to collect tax money for their competitor. Doesn't it make you wonder why the answer is always tax more and never spend less? Is every route on the MTA schedule necessary? At what point is government run transportation deemed to cost too much? How about if you add the "tax" to the MTA fare, that would at least make sense.

The laws of economics say when price goes up demand goes down, so the state is in effect raising the price of a taxicab ride and rubbing the driver's nose it by making them collect the tax for the state.


Baltimore does "research"

Its been reported that the taxicab rate decrease scheduled for Baltimore and Baltimore County has be postponed while state

regulators "research" the cost of doing business. There must be some mistake, that makes good sense. The price for everything is on the rise and there is certainly more than fuel costs to consider when you consider the cost of doing business in the taxicab business. Congratulations to the state regulators for making the right call.


The Big Easy not so easy on the locals.

A federal judge is reported to have stopped negotiations between the New Orleans Aviation Board and Dulles Cab regarding the contract to provide service at the New Orleans airport. Yellow Cab of Orange County is reported to believe the process was rigged, excluding local providers.

The attorney for the local company complained that "you can't compete. You can't even submit a proposal." I've never actually heard of a request for proposals (RFP) that exempted local companies. Part of Yellow's complaint is that a local company is reported to be actually running the contract as a subcontractor. Which would make one wonder why that company couldn't just bid for the contract themselves. Surely adding another middleman didn't make the price go down. But then price is just one factor in an RFP. Anyway, it looks like the Big Easy is getting back to normal.


Let's get to the real story.

San Francisco is reported to be "cracking down" on illegal taxicab operators. Great, it's good for the public and the industry to keep illegal operators off the street. The Municipal Transit Agency, which is now reported to "control" the taxicab industry, is meeting to propose a $5000 fine for illegal taxis. Wow, $5000, that's pretty serious! No mention of who is going to enforce the new fine, but hey let's enjoy the moment.

Of course the other shoe is the idea that if outlying areas are served there may be a need for additional permits. Oh, I see. We'd best get these new permits around the same time the mayor's permit sale scam kicks off, that way we wouldn't have to pay any royalty to the previous owner of the permit. New Orleans got nuthin on San Francisco.

 


—dmc

 

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