INDUSTRY IN REVIEW

By Don McCurdy

Not so fast.

Debate rages over the death of the taxicab industry as it currently exists based on the excitement generated by Uber and ride sharing services. Maybe so, maybe no.

While Uber is an up and comer in the business, the simple logistics of replacing hundreds of taxicabs, and in some cases thousands, is a monumental task. While Uber will definitely cut into the business it will also develop its own clientele.

Unmarked vehicles cannot be flagged nor are Uber vehicles staging at taxicab stands at transportation centers. There are also those not so tech savvy customers who will never be able to order a vehicle with a smart phone app. While I don't see Uber as the end of the industry, I do anticipate a number of failures of companies that cannot compete in the new paradigm.

In most jurisdictions, taxicab companies have had the benefit of oligopoly (a state of limited competition in which a market is shared by a small number of producers or sellers), and in some cases monopoly, style entry regulations. They've actually shrank the pie by providing unreliable service, poor driver training and poor driver discipline.

Now, Uber comes along and predictions abound about the death of the taxicab industry. Uber may well be what it takes to make the industry competitive again.

Another one bites the dust.

A former Atlantic City taxicab inspector is about to be sentenced to five years in prison for
accepting bribes. The number of bribes he admitted to taking wasn't substantial, but the state's attorney took exception to a public official, charged with protecting us, taking a payoff to look the other way.

Like all of the previous guardians gone astray, the Jersey inspector was a midlevel local bureaucrat who had authority that could be purchased. Every new or old law is an opportunity for those given authority to be corrupted.

Is you is or is you ain't?

It's being reported that Metro Cab in Denver has decided that keeping track of driver's hours means that drivers can only use Metro's credit card processing. Now, that is some serious "interpretation" of the law right there folks. Reminiscent of the Rahm Emanuel "let no crisis go to waste", Metro acted after the PUC fined Metro because their drivers drove more than the allowed hours each week.

Beyond getting fined I doubt very seriously that Metro gives a hoot whether drivers manage to squeeze in a few extra hours. The excuse is good enough for them to extort a few extra fees from the drivers.

In fact, it would probably be prudent for Metro to up the prices charged for credit card processing since they may actually have to add some enforcement personnel to apprehend those desperados who insist on doing their own thing. But, aren't independent contractors supposed to be doing their own thing?

If the company demands that drivers use the company's credit card processing aren't they then controlling an independent contractor? Wouldn't a driver using a separate credit card processing be clear evidence that they are independent contractors? Further, their "interpretation" of the law only holds up if the driver is signed off the computer system. If the driver is signed on then their claim that the only way to track their hours goes directly into the toilet.

Own up boys, your credit card mandate is a clumsy, transparent way to attempt to compel drivers to use your inefficient, expensive credit card processing so you can wet your beak. It's tried and true taxicab management, you make the rules so you benefit. After all, how are you going to beat budget?

You lack the desire or ability to enlarge the pie so you have to try to get more of someone else's share. Now, again, why wouldn't the driver want to drive for Uber?

That's not how it's supposed to work.

The city of Grand Rapids Michigan has come out and stated that it is not going to regulate Uber just yet. This is being seen by some in the community that the public should not expect to have any assurances of Uber's safety. Or, at least, that's the scoop from Tom Sinas at the Sinas Law Firm.

Now, the reporter doesn't specify what Tommy's connection or expertise in the ground transportation might be, but I'd be willing to bet a dollar that he has represented or does represent a taxicab company. In the reporter's story, his example of what might happen is so convoluted that it takes a lawyer to grasp its significance.

What Tommy should have said was that politicians are supposed to come out with some really cool sounding regulations that give the populace the illusion of safety. He should have said that not regulating Uber defies that feel good experience we're supposed to get from government. You know, like when the EPA is taking soil samples in your back yard to determine if they can help you clean it up and then confiscate your land for your good and the good of the country. Yeah, like that. Good for the city of Grand Rapids. Now, let's work on what taxicab regulations are feel good and which are necessary.

I started a joke.

The joke that is the Philadelphia Parking Authority (PPA) regulating the taxicabs in Philadelphia continues to amuse. The near hysterical bleating of the as yet to be indicted new head of the PPA sounded amateurish at best but comical in his attempt to prove the value of PPA screwtiny. "They could have felons driving the cabs" he is reported to have said of Germantown Cab Company. Therefore we must regulate you more he suggests.

We have xyz number of unanswered complaints and drivers who are accused of xyx. No, we might have felons driving. This might be the cause of driver problems he intones. Is it possible that there are ex PPA employees driving? Nope, that's not it, the PPA wants the 262 grand that the company will have to pay them over the next few years. Then, perhaps, all the complaint problems will go away.

Show me the money Germantown. Meanwhile, can we get a press spokesman for this guy. I hear Jay Carney, Obama'a former Press Secretary, is available and he can lie much more convincingly.

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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