INDUSTRY IN REVIEW

By Don McCurdy

RECENT INDUSTRY EVENTS IN REVIEW
SEPTEMBER 2006

About that fare increase.

Recently, I read an article regarding a fare increase in San Francisco to compensate for the increased cost of fuel and, in general, to cover the increased cost of doing business. There are several ways to approach this situation, not all of which are favorable to the industry.

Taxicab oriented cities like New York City will grumble a little, but see the need for an increase and ridership won't be affected to any large extent. San Francisco may find that their industry doesn't fare so well when fares are raised. The industry will fare equally badly if unregulated competition is allowed to price its service at whatever price it pleases.

I recommend adding to the drop (the initial rate on the meter when the passenger enters the cab) instead of the mileage for a variety of reasons.

Increasing the mileage rate will make the sedan or "limo" service rates more competitive on longer runs (overcome the extra fuel charges), including coveted airport trips, but at the same time can result in a substantial loss of business on the most profitable runs.

San Francisco taxicab driver income is still reeling from the increase in the number of cabs. Losing any substantial amount of the airport business isn't going to help. Increasing the drop will also get Grandma better service at the grocery store.

The mileage charge may be too costly for some short run passengers. It's all well and good to say that drivers "should" provide good service regardless, but you get what you pay for. The increased drop rate will assure the driver of fuel increase coverage and encourage him to take these short runs.

He should have what?

I read with interest the comments of a jury member in the Robert Smiley case in Florida. Mr. Smiley, a taxi driver, defended himself from a threatening passenger and was charged with using excessive force in defending himself. "He could have shot him in the knee" was the juror's comment. I realized immediately that this person had no idea what drivers face out there, especially night drivers.

Conceivably, I think Smiley's attorney should ask potential jurors if they've ever seen a cowboy movie where the good guy shot the gun out of the bad guy's hand. Anyone that answers yes should be disqualified immediately. Expecting this extreme degree of care in protecting an individual who is armed and threatening the life of an intended victim is unbelievable.

I don't know if Smiley is innocent, guilty or what, but I would speculate that if a drunk had attacked a liquor store clerk and been shot, there wouldn't be a discussion about the degree of force used by the liqour store employee in defending him or her self.

Stories abound daily about drivers being attacked and or killed. How dangerous does it have to be for a driver to defend himself?

Strike! Strike! Strike!

Philadelphia taxicab drivers went on a brief strike at the Philadelphia International Airport to protest new rules. Drivers object to new "parking authority" rules that require the installation of GPS in the city's 1,600 medallion cabs and the retirement of cabs that hit 250,000 miles.

The local head of the driver's union expected 99% driver participation in the strike, which does go to show that there are still dreamers in America. Not to belittle their cause, but believing you can get 99% of taxicab drivers to do anything has a very unrealistic ring to it.

GPS offers the drivers a lot of options they don't currently have in the way of dispatching and safety. To get upset about having to have GPS seems a little over reactive to me.

Now, the retirement at 250,000 miles is an entirely different matter. A car with 125,000 miles can be just as dangerous as a car with 500,000 miles on it. It appears that the "parking authority" is dreaming that they can stop inspecting vehicles if they demand lower mileage vehicles. That's hardly the case. It appears to me that it's just another high cost regulation with no thought about how these newer unnecessary vehicles are to be paid for. Expect widespread tampering with mileage records.

What a bunch of whiners!

Portland Oregon is on the verge of putting one of their cab companies out of business because the city alleges that they:

• don't have insurance,

• have substandard vehicles,

• allow drivers to work 14 hour shifts, and

• have assorted other violations.

Often, I've said that cities only regulate the willing, which it appears Portland is attempting to disprove. Portland's regulations are appropriate and justified.

Most cities I've encountered, like say Houston, are more interested in how much revenue they can derive from issuing citations to drivers for such high crimes as too many cabs on a cab stand while the real issues of the day never come to light. Hat's off to Portland for at least standing by their rules.

Another breakthrough!

Louisville Mayor Jerry Abramson said that individuals with physical disabilities will have expanded transportation options, due to a city policy requiring taxicab companies to make a percentage of their fleet wheelchair accessible. Louisville is one of the cities that require taxicab companies to have wheelchair accessible vehicles.

The ordinance requires companies with more than 25 service vehicles to have at least 2 percent of their fleet wheelchair accessible. Two companies that meet the new law's threshold have six accessible vehicles already. Now, I don't know how many cabs there are in Louisville, but I'd be willing to wager that these two companies are already operating more than 2% wheelchair accessible cabs.

So what exactly has the new law done? It can only be in politics that you could pretend you did something that already existed and get a press conference to prove it. Take a bow Mr. Mayor!

—dmc

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