Should Taxi Drivers Be Allowed to Charge What They Want

Self-Employed But Not Making It

Published on January 11, 2006 By jesseledesma In Politics

Currently, us cab drivers, are in negotiatiions with the city of El Paso Texas city council.

The issues are what cab drivers charge and how they are to be regualted.

I know some of you like to critcize.

Therefore, I would like to know if you believe that Taxi Drivers who are self-employed independent business agents should be allowed to set their own prices.

Here, in El Paso Texas Taxi services are provided by people who work for themselves. We are not employees of any comapny.

We do have a business agreement for the use of comapny logo, two way radio services, and access to Taxi Stands around the city.

However, we work for our selves.

My point is that the property owners should set the selling of the property in question.

Here, the property is the Taxi service.

If you do respond please do not measure your responce against how you have been treated by Taxi drivers you have had contact with.

Ask your self if you where a Business Owner would you like any level of goverment to tell you how much you can charge for the goods and services you would provide to the consumer.

Thank You.

Mr J L Ledesma

Comments

Trudygolightly

on Jan 11, 2006

My ex and I were owner/operaters at St.Paul Yellow Taxi Cab from April 84 til April of 88.
The city determined our rates, the amount that it cost to get in the cab, and how many licenses the
cab companies in St. Paul could have.

I would have LOVED to have been able to set our own rates.
We had a brand new car, the biggest station wagon that Oldsmobile made back then and it was sweet. A lot of
people asked for us and we were polite, kind, friendly but not too friendly and were safe drivers.

I believe we could have set our rates lower than the city allowed and made a good living at it.
And we did, before the man that owned the legal rights to the name and the color insisted we
carry 1 million dollars worth of insurance per accident. It was across the board, across the US.

Even tho taxis in Mn had fewer accidents, we had to pay the price because of accidents in NY and other huge cities.

I think the city had too much power back then, and not enough where it was needed.

Texas Wahine

on Jan 11, 2006

Sure you should be able to set your rates.

Obviously what happens is that the entire industry ends up charging similar rates (in order to be competitive) that are about as high as people are willing to pay. Go too high, people will find other ways to get around, and of course no one's going to charge much less than what customers are willing to pay.

I don't know why the prices would need to be regulated by the city. You guys aren't going to be able to gouge people and stay in business. It seems like the market would regulate itself.

cactoblasta

on Jan 11, 2006

Nah I'd rather the rates were set by the city. I've been in cities and situations where the drivers set their own rates. It ends up being something akin to extortion, especially late at night after you've been at the pub. You can either pay $50+ to go 10 or so kilometres down quiet streets, or you can walk. The drivers hold all the aces because you're in no condition to protect yourself.

They end up with fewer passengers, fewer trips, but a lot more profit. Sure it works for them, but what about the poor kids who have to walk home at 3am or pick up because there's no other form of transport?

SSG Geezer

on Jan 11, 2006

Right on Cacto!
Seems that in certain places (Korea) after a certain time of night the cabs can charge 20% more than std by law. But often charge whatever they can get. I realize that having a taxi service is a lot of labor and trouble, but in Korea the cabs are one of the best things going due to the large number available. The standard cabs are about 50% of the cost of a cab in the US while their gasoline cost is 3 to 4 times higher. (Yet they stay in business!) Some regulation is needed. Trudy's point was about being forced to follow franchise rules that made her less competitive. Not really the city's regulations.

Trudygolightly

on Jan 11, 2006

Reply By: SSG Geezer

Trudy's point was about being forced to follow franchise rules that made her less competitive. Not really the city's regulations.

Maybe because i don't understand the business as much as my ex did is why I don't get the above statement Geezer...

the city DID regulate the rates for the fares, and the rate for getting into the cab. They also regulated how many licenses there
could be in the city, how cabs were inspected weekly, and a major inspection was done once a year at the same place where
the firetrucks, squads, all city vehicles got inspected.

It WAS the franchise owner that set the amount of insurance rates, that was about all tho. We did have to pay dues for radio service.

SSG Geezer

on Jan 12, 2006

You stated the bit about 1 mill in insurance as the major reason you lost some of your profit margin. If I am mistaken, sorry.
Korea has lots and lots of cabs. It works there. Limiting medallions allows the citys to charge more but is counterproductive.

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