INDUSTRY IN REVIEW

by Don McCurdy

Blend until thoroughly mixed.

Reports are that the NYC Taxi and Limousine Commission voted to allow smart phone users to "hail" a cab using a smart phone app. Interestingly, the ap restrictions sound a lot like rules set up in computer dispatch systems: half mile distance in downtown Manhattan and one and a half miles in the outer boroughs. Why, that sounds like full GPS dispatching! The ruling alters the basic function of the yellow cabs from straight flag to flag plus limited method dispatch, thus further blurring the lines between taxicabs and livery cars.

It has been several decades since yellow cabs were banned from being dispatched. I wonder how many more decades it will take before the industry's separation is dissolved. It certainly appears headed that way. It is interesting to see the evolution of regulation. Yellow cabs being denied dispatch was to enable people to hail a cab exclusively, a trade off to support the Black Car and Livery industries who were given exclusive rights to dispatch but no hail. Now that yellow cabs can be hailed by a phone won't they be passing people hailing physically? Wasn't passing hailers what removing dispatch from taxicabs was meant to cure?

How can you tell?

It has been reported that when statistics on driver assaults were demanded via a freedom of information request, the Manitoba Taxi Cab Board informed the requester that no such statistics were kept. Anecdotal reports are that assaults on taxicab drivers in Winnipeg have been increasing, but how can you tell for sure if nobody is keeping score?

Cities routinely react to a driver murder or other serious attacks by mandating cameras, shields or other "safety" devices, so it isn't unusual for there not to be an identification of the type of crimes being perpetrated before initiating "reforms". After safety devices or options are instituted, it would seem to me that keeping tally would be the only way to tell if the situation was improving. Since most police reports are computerized now, at least in the civilized world, it would only take a smart programmer to fish out the necessary statistics from the local police blotters, but guess the keyword is necessary. For a bureaucrat it only becomes a "necessary" statistic if my boss says it's a necessary statistic.

What other color could they be?

A recent opinion piece in a DC paper suggested that all DC cabs should be painted red. First off, painting the cabs red in the first place is all DC all the time. I mean, where else could wasting someone else's money be so commonplace? Second, red should be the universal color for DC anyway, red tape, red ink and reds in charge, what could be more natural? Red cabs could be a constant reminder for anyone visiting our capital that we are drowning in a sea of red ink. They could be rolling symbols that Congress spends more borrowed money in one day than all of the drivers in DC will earn in their entire lifetime. Yes, definitely, no other color brings to DC such a natural acceptance of the DC culture.

Not a simple problem.

The city of New Orleans is reportedly offering safety training to their taxicab drivers. Citizens writing the local paper are concerned the police will tell the drivers to avoid certain areas due to a high crime rate in that area.

While training is a good thing, I'm not sure that the police are the proper trainers. Why not? Well, the police are certainly experts on crime, but hardly avoiding crime. Avoiding becoming a victim of violence as a taxicab driver involves profiling. Any police officer suggesting profiling or refusing to convey a potential customer would surely be reprimanded and be forced to mouth some politically correct rhetoric instead of sound advice to avoid being killed. So what is the answer then? Well, there is no one answer.

Drivers need to be able to assess the intentions of any potential passenger before the passenger gets into the cab. Companies need to establish and practice prevention techniques before there's a "situation." There is certainly no lonelier feeling than being off the beaten track with a couple of miscreants in the cab when the deal starts to go down and with established prevention techniques companies can have proactive policies and procedures to get the driver assistance. The training is also expected to help drivers "more effectively report crime." Gee thanks. Does the New Orleans police department know the profile of the most common robber? Do they recommend the drivers carry concealed? Do they respond promptly to a fare dispute to keep it from becoming violent? There's a lot more to taxicab driver safety than a training class from the police department.

Because I said so!

Recently, there has been some questions raised as to why New York City needs a "standard" taxi? Well, the short answer is that it doesn't. Like all good politicians Mikey Mayor is fixing a problem that simply doesn't exist. How much city money has been spent trying to find the "standard"taxi? Who cares, it's not my money. On a list of issues plaguing the city of New York where does the "standard" taxi fit in? Who decided that it was an issue? Are the purveyors of the taxicab industry in New York City simply idiots that need to be led around so they don't go bankrupt? Is the industry so broken that it requires constant fiddling by the regulators? If you can't figure out what the term "term limits" means what makes you think you're smart enough to pick a "standard" taxi?

Uber in the news.

Well, a month couldn't go by without our Uber update. Uber was accused of price gouging in a couple of locations over the course of hurricane Sandy and the New Year's Eve party. It seems that it's criminal to charge more for a product if the demand increases off the charts despite those alleged economic principles.

If you had a choice of walking or paying more which would you choose? Reports are that the IATR (International Association of Taxicab Regulators) has drafted some rules to "regulate" Uber and similar apps. Why? Well, to "protect" their fiefdoms of course. Let's face the facts, most taxicab regulations have little or nothing to do with public safety or the "stability" of the industry. We have to protect our medallion prices, medallion holders and the politically connected contributing taxicab company owners.

I'm sorry, I read way too much taxicab news to believe for one second that Mile High Cab shouldn't get a franchise, that San Francisco needed to sell medallions, New York City needs a "standard" cab, or that competition is bad for the industry. As long as Uber is using licensed vehicles what's the beef? When regulators start arbitrarily forcing regulations on the industry to rid themselves of perceived interlopers they are wedging their heads up their proverbial tailpipes. If you can't work with business to make it better than get out of the way. The IATR should be embarrassed, but they're not. I'm certainly not a visionary, but I believe that I predicted Uber might just have an issue or two. I did not, however, foresee the IATR organizing an effort to squash them.

We need a new regulation!

Ocean City Maryland is wondering what's up with the price of taxicab medallions. The price seems to fluctuate for no apparent reason. Well, like any other commodity you have to have a buyer with the money to buy it. Since individual owners can't sell to companies, individual medallions are worth less than company medallions. Really, when did you last see a taxicab driver with five or six thousand dollars to spend on a medallion? Perhaps, the city could get more money out of the deal if they agreed to finance any medallion prices over ten thousand. I'll bet that would get the price up.



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