By Don McCurdy

According to reports out of the windy city, taxicab drivers are upset. It seems that Mayor Rahm's plan to allow "ride share" companies to operate out of O'Hare and other city owned facilities is not as popular as it might be. It's hard to understand the logic of depriving service as a method of winning the public over to your position, but nobody asked me. I do, however, grasp fully the frustration of the taxicab driver and medallion owners.

The medallion holders have spent upwards of a half mil for the rights to provide exclusive on demand service that is fast becoming not so very exclusive. Taxicab drivers are left with a program that is much more expensive than the "ride share" option because of the regulations that are now being overlooked for the upstart "ride share" companies. The "ride share" companies have little or no real investment in the city beyond the ap that was written long before they ever entered the Chicago market.

Since the city issued and sold these "valuable" assets (taxi medallions) with the implied promise that they would be protected while doing business in the city, it sounds to me like the non-licensing of "ride share" companies will eventually end up in the courts with the bankrupt city trying to figure out how to pay the litigation bill. Time will tell who has failed and whose been left behind.

Regulation has long been an associated cost with the operation of any business. Federal, state and local regulations all have a cost of compliance. Well, taxicab passengers in West Palm Beach found this out when Uber appeared on the scene sans regulation and cheaper.

Palm Beach County commissioners are considering a proposal to set flat rates to be charged by all transportation methods, but I have my doubts that the commissioners will set a flat rate and that even if they do that the scheme will save the taxicab business. The cost of regulations will still exist for the taxicabs, but not for Uber.

While the playing field will appear to be level it will in fact not be level. For years I have talked about the "taxi tax" and it appears that the good citizens of West Palm Beach are tired of paying it. As technology advances I can't help but wonder what other government regulated businesses will fall to an upstart service the community falls in love with. Who knows, it may result in unregulated freedom. How scary is that?

Reports are that a hundred drivers in Los Angeles have decided to join the National Taxi Workers Alliance (NTWA) in an effort to ward off the devil Uber. The theory being that through unity comes the strength to resist the irresistible.

The drivers are reportedly considering an alliance with the evil companies to help ward off the Uber demon. While I wish them all the luck, the end to me would appear to be a downsizing of the taxicab industry to something a bit smaller and more responsive to customer needs.

While under the burden of regulation, taxicabs have also been under the protection of the regulators. Uber has stripped bare the regulatory protections and compelled the industry to evaluate itself. While the taxi union may eventually develop enough clout to compel regulators to protect them again, I don't see that happening. Their opponents have deep pockets and are willing to spend whatever is necessary to get established under their conditions in the tightest of markets.

At some point the taxi union may achieve sufficient political muscle to get the industry a seat at the table, but so far that hasn't happened. Decades of tradition and regulation are changing, maybe for the better and maybe not. The industry has to adjust to unexpected competition. The union may help, but I'm not sure how.

Last month's compete or die ruling from a New York judge is reportedly being revisited due to a federal judge's ruling in Chicago allowing a lawsuit by drivers and medallion owners to go forward based on the equal protection clause. Basically the judge has acknowledged that Uber et al have been treated differently than taxicabs by city ordinances.

Based on the differences between the city ordinances, there can be little doubt that the two comparative services are being treated differently. While New York City can differentiate between the two services because their taxicabs are not allowed dispatched trips, Chicago cannot claim such a difference. Their taxicab services are allowed phone, app and street hail methods of customer service.

NYC may have a bit of an issue with it since they, not only allow taxicabs to use an app to be hailed, they promote it. It may come to pass that the courts force regulation lite on the taxicab regulators in order for them to continue to allow Uber to operate, something that appears to be in everyone's heart.

Any taxicab driver who saw the movie Total Recall has to have nightmares about "Johnny Cab," the robot driven taxicab of the future. Well, the bane of the taxicab industry, Uber, is reportedly working on the real life version of Johnny Cab in Arizona. It may take a decade or so, but it most certainly could happen.

Since the majority of taxicab drivers in the US use English as a second language the public may very well be happy to see Johnny Cab. Perhaps, then, Jerry Kozubal can get his old job back.

Reports are that a group taxicab drivers in Tucson have "won" a ruling from the National Labor Relations Board that they are employees of AAA Transportation/Yellow Cab and, therefor, they are eligible to form a union. The case will undoubtedly end up in court which will get down to the details of the dispatch "procedures" the NLRB claims offered "significant control" over the drivers.

The case will come down to the details of the "significant control" and the company's efforts to keep their relationship with their drivers on an independent contractor basis. Depending on the procedures the company uses, the ruling could have widespread ramifications.

If they failed to properly maintain their IC relationship beyond the usual procedures the company could easily end up in bankruptcy. If they did maintain their IC relationship (Independent Contractor) and the courts still rule against them, the wider industry could be affected. The election to establish a union could end up being a useless endeavor if the company goes under.

Having a strong union and no company to work for seems somewhat counterproductive. With Uber and the taxicab companies all fighting to maintain their independent contractor status the future of transportation on demand is hanging in the balance.

Most taxicab companies depend on the maintenance of the independent contractor driver status, although technology could give them the necessary control if the courts ended up ruling against their driver's IC status. We shall see.

The San Francisco Municipal Transportation Agency Board of Directors is reported to have voted in support of drug testing. Testing would be at the usual driver scheduled shift times and drivers would be suspended if they tested positive.

Not all conclusions concerning that San Francisco ruling could have happened in Kansas. Now, here's the Nancy Pelosi type twist: If the driver can produce a valid approval for medical marijuana their suspension will be lifted.

The commentary from the director of California NORML, (can you have a "national" organization with a California adjective), is reported to have told the board that there are no studies that show "regular" marijuana use impairs driving safety.

Another noteworthy comment is being reported from Tom Diesso, one of the drivers; "My only concern is that my fellow drivers, up in age, need marijuana to get them through the night without aches and pains." Yeah, that would be my only concern if I was taking a cab in San Francisco. Do people really think like this?

Most people don't realize that short of being a policeman, fireman or a soldier, you are not likely to do anything more dangerous than driving. More people die driving in the US than are murdered by a wide margin and yet we think that smoking pot isn't going to affect them?

Get serious. Unless you figure out some way to measure THC levels in the blood stream there is no way to tell if the driver was stoned at the time of the collision or not. While I don't believe that it's any of the government's business if someone smokes pot I don't see how writing that conduct into taxi law is prudent. But then I don't live in San Francisco. If you're thinking you'll just take Uber, their drivers aren't tested at all.

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

—dmc