NEWS

NEW YORK CITY TAXI & LIMOUSINE COMMISSION

Medallion Taxicab Technology Enhancements

Better Communication & Better Service

In March 2004, the TLC’s Board of Commissioners mandated that specific technology based service improvements be implemented in all medallion taxicabs. The technology enhancements focus on four areas:

  • automated collection and submission of trip data,
  • the installation of a passenger information monitor (including a passenger information map),
  • incorporating electronic message transmission capability into the taxicab, and
  • finally, the addition of equipment to enable the acceptance of credit/debit cards.

These service enhancements represent a rare opportunity to significantly improve the riding experience of countless New Yorkers and visitors, as well as for drivers. The new technology will greatly improve communication between the TLC and its constituents. All medallion taxicabs will now offer varied payment options for the riding public. The ability to communicate with taxi drivers on a real time basis will enable the TLC to increase the level of service available to the riding public in ground breaking ways. 


Text Messaging

Text messaging services will offer many benefits to drivers and passengers:

  • communication with taxis in the event of a citywide emergency;
  • streamlining the process for lost property claims;
  • and directing taxicabs to fare opportunities by advising drivers of cruise ship schedules, major public events, and other needs for transportation.

The new system will allow the TLC to send short alphanumeric messages to cabs and receive preprogrammed responses from the driver. The driver will be able to transmit a response by pushing a single button.  


Automated Trip Sheet Data Collection

Today, drivers are required to maintain a trip log that details each and every fare that they serve. The trip sheet is filled out by hand and stored in paper form. Medallion owners are required to maintain these trip sheets for three years.

The TLC will leverage state of the art vehicle location technology to automate this process. By integrating with the taximeter, the technology enhancement equipment will automatically capture the pick up and drop off location of every fare. In the near future, paper trip sheets will disappear as the TLC will receive the data electronically. The data collected will also be more accurate.


Credit Card / Debit Card Payment

The new system will allow all taxicabs to accept credit and debit cards as a form of payment. Credit cards and debit cards are widely accepted as a payment mechanism in the United States:

• 22% of all consumer payments are made by credit card

• 31% of all consumer payments are made by debit card.

Research shows that acceptance of credit and debit cards presents an opportunity for increased revenue - more trips and greater tips! Drivers will also benefit from increased safety. Since there will be less cash on hand, the use of credit/debit cards should diminish the probability of robbery. 


Passenger Information Monitor (PIM)

The passenger information monitor (PIM) is a flat screen monitor, similar to a laptop screen, that will provide information such as news, sports, and weather to the passenger.

The PIM will be installed in the rear seat passenger area of the taxicab where it will be used to complete the electronic payment process. The PIM will display the total fare at the end of every trip. The PIM will be used to communicate TLC Safety and Public Service Announcements (PSAs) and will provide a map allowing the passenger to follow their journey through New York City and surrounding metropolitan areas.

No need to worry, the PIM will NOT provide “directions” to the passenger. Every PIM has an on/off button that can be controlled by the passenger.


Timeline

Summer - Fall 2006 - Rigorous and thorough field-testing of equipment.

Winter 2006 - Pilot test of new equipment – up to 200 enhanced taxicabs on the street.

Spring 2007 - Rollout completed and equipment available in all taxicabs.


Driver Frequently Asked Questions

Is the TLC going to use this technology to track drivers?

No, the TLC will only use this technology to provide those customer service improvements described here.  Even more importantly for drivers, the TLC will use it to replace the current hand written trip sheets with automatic electronic trip sheets which will be limited to collecting pick up, drop off, and fare information, all of which are already required.

I have heard that this system will cost drivers between $3,000 and $5,000. Is this true?

The primary cost of the system will be the responsibility of medallion owners, not drivers.  There will be some transaction or service fees.  The TLC worked hard to negotiate fair contracts with vendors to minimize the cost to our licensees.

How will the system be maintained? Who will pay for maintenance?

Repair locations will be set up throughout the City and in many cases, the repair shops will be meter shops.  Medallion owners will pay for a maintenance contract to cover all equipment repairs and replacements. 

Are there any benefits for drivers?

Yes, we expect more trips and larger tips due to the acceptance of credit/debit cards.  Most retailers have reported increased revenue when they start accepting credit/debit cards.

The text messaging system will alert drivers to fare opportunities such as the arrival of a passenger cruise ship or the end of a large event.

Are passengers going to use the map displayed on the terminal in the back to give drivers directions on how to get to a location?

The map will not encourage “back seat” driving by passengers.  It will only show the current location and the path the cab has traveled – no directions will be provided.

Are there any other benefits?

Use of credit/debit cards means that the driver will have less cash on hand, which creates safer conditions. And the text messaging system means drivers can be notified in case of emergency situations. 

Will I need training? How will I be trained?

The systems will be made as user friendly as possible, but some training may be necessary, at first. Suppliers are required to provide it and it should take about one hour. The first training session will be available free of charge.


Owner Frequently Asked Questions

How much will it cost to install the system?

Fixed costs: There will be an up front cost of between $10 and $4,115 followed by a monthly service charge of between $43 and $200.  The total cost of ownership over a three year period will be between $2,900 and $7,200. The cost is based upon which company is selected and if advertising fees are accepted to offset costs.

The numbers quoted above are the maximum permitted rates, and in most cases will be lower.  In many ways, signing up for the service enhancements is similar to cell phone contracts.  Each vendor offers different packages, with different fee structures.

Variable costs:  Credit/debit card fees are about 3% to 4%.  On a $25 credit/debit card charge, fees will be less than $1.

Can I negotiate with a vendor for lower prices?

Yes, the figures cited above are maximum prices permitted.

If I signed a contract for credit card meter processing, and/or for interior/exterior advertising, do I have to sign up with this vendor for my Technology Enhancements package?

No, you are free to sign up with any Technology Enhancements vendor.  You will not be held to prior contracts signed for credit card meter processing and interior advertising.

How much of this cost can I pass onto drivers?

Only credit/debit card transaction costs can be passed on. 

How long will the contract last?

The contract will last for up to three years.  Owners may have the option to extend this contract for one or two years more.

Can I switch vendors after I sign a contract?

Yes, but cancellation fees will apply. It is similar to a cell phone contract.

When do I have to install the system?

There will be a date set in the spring 2007 after which owners will have thirty days to sign up with a vendor. After the sign up deadline, vendors will have sixty days to have the equipment installed.

Are we going to get a fare increase to pay for the technology enhancements?

The fare increase authorized in March, 2004 included a mandate for the service improvements. 

Will the medallion holder own the technology after the contract expires?

In some cases, yes. This varies depending on the vendor.


TECHNOLOGY ENHANCEMENTS SEMINAR

On Saturday, September 30, 2006 medallion owners, drivers, and agents of NYC Yellow Taxi Cabs attended a seminar to learn about and view the Technology Enhancements. Vendors and TLC representatives were on hand to answer questions.

Medallion TaxicabTechnology Enhancements
September 30, 2006

Project Goals

Improve the Riding & Driving Experience Through:

• Payment Options (Credit/Debit Cards)

• Communicating Useful Information to Passengers (Passenger Information Monitor “PIM”)

• Communicating Useful Information to Drivers (Text Messaging on Driver Information Monitor “DIM”)

• Better Policy & Regulation (Automated Trip-Sheet Data Collection) Payment Options Provide Riders With Options for Payment

• All Major Credit Cards (American Express, Visa, MasterCard, Discover & JCB)

• Signature Based Debit Cards

• Passenger Pays Using PIM

• No Signature for Payments Less Than $25

• In the Future –Prepay Card


Electronic Trip-Sheet Data Collection

• Implement Automatic Vehicle Location Technology

• Capture Data and Provide On Line Access

• Automated Data = Increased Accuracy

• TLC will regularly capture only information ( pick up, drop off, time, etc) that is currently kept manually

• Driver, Owner & Agent will have access to trip sheet data

• Better Policy & Regulation


Communicating With Drivers (Text Messaging)

• Recovery of Passenger’s Lost Property

• Cab Efficiency / Fare Opportunities

• Traffic Related Information

• Emergency Communication


Communicating With Passengers (PIMs)

• Allow TLC to Communicate with Passengers

• Must include a Map

• Must have “Off”and “Mute” Buttons

• TLC Rules and Regulations

• Public Service Announcements

• Envisioned to include other information and entertainment

• Advertising is Optional


Why Did the TLC Organize the Contracts This Way?

• Integrate All Four Enhancements Into a Single Solution

• Buying Power of Entire Cab Fleet

• Keep Passenger Experience Similar

• TLC is Impartial - Zero Dollar Contract to City


Benefits to You

• Single Point of Contact (SPOC)

• Turnkey Solution

• Indemnification for Regulatory Non-Compliance


CostsFixed Costs

• One Time Upfront Cost

• Monthly Fee Variable

• Credit Card Transaction Costs


Three Years Total Cost of Ownership (TCO)

• Maximum Price ($ 2,900 –$5,700)

• Depends on Advertising vs. No Advertising Model

• Cost can be Negotiated Lower


Key Contractual Issues

• Legacy Agreements not Enforceable

• Term cannot Exceed Term of TLC Contract

• Mandated Training

• Void Contract if TLC Rules Repealed


Exhibit RC (Rates & Charges)

• Copies of all Contracts must be given to TLC

• Maximum Cost is Listed

• Clearly Lists all Costs, Fees, Options, etc


Next Steps

• Stage 1-Functionality Testing (Current)

• Marketing Period (October ’06 –January ’07)

• Stage 2 -50 Cabs/Vendors (October ’06)

• Contract Sign-Up Deadline (January ’07 -February ’07)

• Compliance Deadline ( Spring ’07)

(Subject to Change)


MEDALLION TAXICAB TECHNOLOGY ENHANCEMENTS

In order to provide better service to passengers, the Taxi and Limousine Commission has mandated new equipment be installed in all yellow cabs.  In October 2006, up to 200 enhanced taxis will be on the streets.  In the first half of 2007 all yellow taxicabs will be equipped with the following:

Credit Card/Debit Card Payment System – Taxicabs will accept cash and credit/debit cards for all fares.  The equipment will be installed in the rear of the cab which will provide a high level of security as passengers will swipe their own card and be in control during the transaction.

Passenger Information Monitor (PIM) – A small screen will be installed in the back seat to provide both information and entertainment.  All monitors will have buttons to both mute and turn off the PIM.  The PIM will display a map with the taxicab’s current location and facilitate payment of all fares.

Trip Sheet Automation – Using Automatic Vehicle Locator (AVL) technology, the collection of trip sheet data will now be automatic.  This will improve the accuracy of collected data which will help facilitate the return of lost property.

Text Messaging – A Driver Information Monitor (DIM) will permit messages to be sent to drivers when the vehicle is stopped.  These messages can be used to assist drivers in returning lost property and to help avoid traffic congestion.


Passenger Frequently Asked Questions

How will the enhancements benefit passengers?

All taxicabs will accept cash or credit/debit cards, increasing passengers’ payment options.  There will be a Passenger Information Monitor (PIM) installed in the back seat which will display a map showing the vehicle’s current location, in addition to providing news and entertainment.

The system will also assist in returning lost property by improving information flow between the TLC and drivers.

Which credit/debit cards will be accepted?

Credit cards: Visa, MasterCard, American Express, Discover and JCB Debit cards: Signature based Visa and MasterCard.

How will I get my receipt?

The driver will hand you the receipt as they do now.

How long will it take if I use a credit/debit card in the cab?

A credit/debit card transaction will take on the average 5 to 10 seconds to process, after the card is swiped.

Can I use my credit/debit card for all fares?

Yes, drivers will accept credit/debit cards for all fares; there are no minimums.

I am concerned about security, who will swipe the credit/debit card?

All the equipment will be installed in the back seat of the cab.  The passenger will swipe the card and can enter the tip in the PIM.  There is no need to hand the card to the driver.

Do I have to sign the receipt?

Customers only need to sign the receipt when the fare is $25.00 and over.

Will the map offer directions or traffic conditions?

No, the map will only show where you are currently located, and may contain “breadcrumbs” displaying the route you have traveled.

Can I turn off the monitor in the backseat?

Passengers will be able to turn off either the sound or the entire monitor.  If it had been turned off, the monitor will reactivate at the end of the ride to assist in payment.

What happens if my credit/debit card does not work?

If the credit/debit card payment does not process, passengers can pay in cash or use another card. 

Will drivers be distracted by text messages being sent to the cab?

No, the system is designed so that text messages can only be displayed when the cab is stopped or moving very slowly.  There will be no keyboard for drivers, who will only have to push a button to reply.


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