Years ago, 1-800-taxicab, came up with a "nationwide" system that you could call from any city and get a cab. Not necessarily the best cab company, but you'd get a cab.
Now, a couple of decades later, we have "uberTAXI." But Uber isn't a taxi company. Yeah, well perhaps not, but they're teaming up with taxicab companies in Portland and other cities to provide taxicab service at the touch of an Uber button. At the end of the ride you get to rate your uberTAXI just like Uber, so we assume that not every taxicab driver will get to be an uberTAXI driver.
So, if you call the regular number you take the chance of getting any nonrated driver instead of the Uber rated driver. Has Uber now become the dispatch and quality control department for some taxicab companies? It appears so.
Let me see if I get the whole picture. Uber moves into town with their app and their "shared ride" service and terrifies the taxicab companies. Uber then approaches a couple of the taxicab companies and makes them an offer, an offer they can't refuse. If they refuse, the offer will be made to other taxicab companies instead of the chosen few. For an opportunity to wet their beak, Uber will join forces with the lowly taxicab companies and everybody gets a piece of the action. Cut to the Godfather sound track and close. Gee, I can hardly wait for the movie.
Another one bites the dust
Melrose Credit Union, a major lender to the New York City taxicab trade, is reporting that they have become "undercapitalized." Uh, what does that mean? Well, for us laymen it means they're broke. They don't have sufficient cash reserves to conduct business.
Well, what brought all this on the 94 year old institution? The city of New York failing to protect the value of the device they manufactured and granted an "exclusive right." Now the right isn't so exclusive and the value of the device is rapidly dropping.
Along with the driver who bought into the medallion swindle there are investors and banks on the hook for billions the city has already spent. The amazing part of the story is the city is still trying to sell their high priced tin.
Speaking of crashing New York City's crashing medallion prices
The "taxi king" of New York City is reported to have fallen on hard times and is getting sued on a variety of fronts. One of the reported issues, an accused diversion of funds from a Philadelphia taxi company, is reported to have put nearly 100 drivers out of work and stiffing them for their credit card receipts.
On a much larger scale Freidman is accused of transferring real estate holdings to off shore accounts to avoid paying loans to Citibank. With lawsuits in Philadelphia, Boston, New York and Chicago, the former king of the medallion world is reported to struggling to pay his $31,000 a month child support.
Apparently the Uber phenomenon has not been kind to the king. It would appear that it's not always good to be king.
Can't get enough good government
It's reported that the Port of Seattle has selected a new taxicab service agreement with a new provider for Sea-Tac Airport. Currently, taxicab drivers are reported to pay $5.70 per trip to the port of Seattle. While Seattle's minimum wage is headed for $15 an hour, the government seems to be extorting money from low income taxicab drivers without batting an eye.
Sea -Tac is reporting increased traffic out of the airport and the contract is reported to reflect the increase with an increasing amount being charged in future years.
Reports are the average fare to downtown Seattle is about $43. Uber's highest estimate is $42 with Uber paying $5.00 per trip. With the "new" provider's contracts not yet inked it would appear that the licenses to service Seattle and King County are pretty much wasted money since no such licenses are required of their competitor.
No matter how you slice it, the reverse to Robin Hood is evident in Seattle's robbing the poor to give to the government. It seems quite excessive since other airports charge way less. I guess burger flipping is considered a more skilled occupation than professional drivers.
They're back
New York City taxicab regulators are reported to be about to initiate a policy of seizing the vehicles of drivers who load off the street without proper licensing. The policy was declared unconstitutional when done to compel drivers to pay a fine but may be okay with the goal of civil forfeiture.
Civil forfeiture? You know, that pesky little concept that the government can take your stuff without charging you with a crime or taking you to court. What? Yep, apparently that has been ruled constitutional despite language in the Constitution that seems to state otherwise.
More and more frequently rights not clearly delineated in the Constitution, like say public potty rights, are bandied about while those that appear to be fairly clear, like right of the people to keep and bear arms shall not be infringed, are constantly under attack. Why is that?
Well, the president appoints federal judges who "interpret" the Constitution the way the president likes to have the Constitution interpreted, despite what it actually says. I am always a bit concerned when government entities, like say the NYC TLC, start talking about civil forfeiture as a way to solve a problem. We have so few rights left it is somewhat disconcerting when one of our former rights, you know like due process, gets trampled so publically.
Deregulate?
Amazingly, there is a discussion as to whether or not the DC taxicab business should be deregulated. Really? For the longest time the DC taxicab industry had minimal regulations and had people painting their cars to be cabs so they could catch a fare or two on the way home from their government job.
Now, like many other cities, DC is regulating the taxicabs to death. Reports are that economists at George Mason University classify the DC taxicab industry as a "regulatory
failure." Ya think?
Cities all over the country have all but put the taxicab industry out of business by allowing one set of rules for app ordered service versus flags or telephone ordered Uber service. Since they've legalized pot in DC, perhaps, now we might find out what the regulators might be smoking or congress for the matter.
"Taxi Driver?"
Robert De Niro compared Donald Trump to his famous, at least to taxicab drivers, portrayal of taxicab driver Travis Bickle. Reports are that taxi drivers in Sarajevo were plastered with pictures of De Niro.
The forty year old movie touted the classic "you talking to me" scene in which Bickle practices his quick draw while spouting various taunts. The scene is still easily found on YouTube.
Travis Bickle is a Vietnam veteran that's at least a half bubble off plumb and goes through all kinds of mental torture about corruption and moral decay all around him. Eventually, Bickle gets shot up trying to rescue a young prostitute played by Jodi Foster who ends up back at home with her family and going to school. I love happy endings. The only question I have for De Niro is, didn't Bickle end up a hero?
If you have any comments regarding this or any of my articles please feel free to contact me at don@mcacres.com. - dmc
