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December 27, 2006

In Anchorage, taxi riders get a break

A citizens group in Anchorage has fought for several years to get a citywide vote on ending the taxi oligopoly. Naturally, the city government fought them tooth and nail. But in a nice Christmas present, the state Supreme Court ruled that the vote can proceed on April of 2007.

Anchorage has the kind of weather that can make waiting for a cab even less pleasant than otherwise. Allowing reasonable entry in the taxicab business will be a big victory for city residents.

Posted by adrianm at December 27, 2006 02:03 PM




Comments

The group calling themselfs "Anchorage Citizens For Taxi Reform" use a very clever way of representing themselfs as all of Anchorage Citizens. If the Taxi permit process is deregulated this will allow any person with a certian amount of money, a vehicle with certain equipment, and a dispach service, to run a Taxi Cab. People think that it might take a while to get a cab now, wait until there is unsafe and unreliable cabs trying to pick them up for a fare in Anchorage's harse enviroment. What people dont realize is the cost to run a taxi cab. First of all is the cost to renew a permit. $1500.00 to the Municipility, $150.00 to a course to train drivers, a $20 police background check. Next is the cost of the vehicle and equipment. Maintenance of the vehicle. Fuel to run the vehicle. Most expensive part of a taxi business is what it cost for insurance. A taxi permit owner/driver is in the class of low income. People who have owned these permits have worked hard and have spent a large sum of money to retain these permits for a living. Now a group of people want to take away the lively hood of many good citizens who have spent their lives making the taxi cab industry in Anchorage a fair, and most important, a safe enviroment. This is not a win for the people of Anchorage but will cause chaos in the cab business. It will also open up the oppertunity for a group of people to come in and monopolize the cab business. I can only urge the people of Anchorage to leave the Taxi Permit process regulated. Thankyou.

Comment by: Charles Hubbard at January 1, 2007 06:36 AM

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Nice try,the cab driver brunts the cost of training, physicals, and police checks. Cab drivers may be in the lower income ranks, permit owners are not. With the current system of compensation in place it is not numerically improbable for a cab driver to "graduate" to permit holder status. Hubbard suggest if the permit process was opened taxi's would become unsafe and unreliable, why? would the process of obtaining a license change? No. Open up the playing field.

Comment by: Millea at January 3, 2007 08:44 AM

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I have studied the taxicab dilemma for several years. The only winner in any system is whoever owns the taxicab company. Regulations only limit the number of operators. Deregulated states allow for more driver operators. However, it makes no difference which environment exists when it comes to service response. However, I have worked out a new system that solves the service problem, allows the public to enforce service standards without government intervention and the drivers get to keep all the money earned at the meter. I just need a little money to construct the prototype...the cost for this first one is about the same as a permit in Anchorage but my system is self supporting after 50 drivers and growth into all other states is self-funded...anyone got the guts to join me?

Comment by: Kevin at January 8, 2007 01:31 PM

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In reguards to MILLEA's statement. I do know what cost are occured by the permit owner. I am one. I do pay the renewal fees, police check, and a training fee for each driver. Permit owners in Anchorage make about $900-$1100 a month but pay out around $2000.00 a year in fees and renewal. Also you have to pay around $2500 a year in federal income tax depending on your tax bracket. So lets see... After I collect $12,000 a year in lease fees, I pay out $4500.00 in fees an taxes. Boy, am I really getting rich. I havent even made back my original purchase price. If the city of Anchorage needs more cab permits there is already in place a procedure for the Municipality to issue more and all of the money goes to the Muni. In another other areas it has been proven in studies and examples, that having a mass amount of cabs on the road will make crime rates go up. Cab drivers are not getting as many fares and so their income goes down and many resort to promoting illegal activities. Thanx for keeping me on my toes, Charles Hubbard

Comment by: Charles Hubbard at January 10, 2007 10:01 AM

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Ok, my background is off and on driving taxi in Anchorage since 1990, dispatching for 4 different companies for 13 years, dispatch supervisor of Checker Cab, General Manager of Checker Cab, Owning two taxicabs and leasing the permits for those. Currently, I am just a driver. This is the problem, people seem to think that if there are more taxicabs they will get faster service. They are not correct. The areas in Anchorage that are already served well by taxicabs will be just as well served, maybe even a little better, but the other areas will take just as long. Face it, taxicab drivers are going to be where the money is. If you put 20 more taxicabs on the road, 10 of those will be downtown and 10 will be at the airport. If really wouldn't make any difference in speed of service. Would it provide more opprotunity for people wanting to enter the market? Possibly, but it will create more competition within the market. Each of us taxicab drivers compete against each other for our fares. When it is slow, the competition is fierce. When it is busy, the fierceness lessens as we are all making money. Add 20 more taxicabs to my competition and I will be taking home $50 per night. You might say that the leases will go down if there are more taxicabs on the road. There are a lot of drivers in the market now, but there is enough taxicabs for them to go in to. The lease will stay at the maximum that is currently set. The drivers will not make more, they will make less. If a driver wants to own a taxicab, then he/she needs to save up enough to lease a permit, buy a car, get insurance, pay for dispatch. The lease a permit is the only thing that will change, but with making less money they will have a much harder time saving enough to go into business for themselves. Everyone thinks they understand the taxicab industry, but from what I have seen, most people haven't the faintest idea of how the industry works.

Comment by: Laren Eggleston at January 18, 2007 06:55 PM

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Kudo's to you Laren. You hit the nail on the head. Its people like you that make the Cab industry in Anchorage a great thing. Thanx, Charles

Comment by: Charles Hubbard at January 22, 2007 07:50 AM

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I've been driving a cab for 8 years,and I think I know a little more about this business than the "citizens for taxi reform", as they want to call themselves. Deragulation would be a disaster for,- the TAXI industry itself;-will financially ruin the owners and their families ,-and sure enough it will be hard on the drivers,too. I AM ONE OF THEM. Let's say deregulation means double the number(158 now) cabs - to over 300 cabs. The amount of business will be the same. That would mean that drivers will make half the money they make now. We,then will have to pay for the purchase of the car(every year or so),it's maintenance(not cheap),insurance(expensive,$ 700 -1000 per month),dispatch fee((monthly- $700- on the rise) renewal fee( $1500),inspection fees,gas,etc. What that means ,my Anchorage citizens,is that drivers like myself will have to go home with an avarage of 6-7 dollars per hour on a 12 hour shift. I am sure that CRIME RATES WILL GO UP! What will stop a drug diller from runing their own taxi?THEY,too,will Pick up "their customer", "perform the service' and go after the "next call". WHat is there for him or her to lose if being caught? An extra $875(suggested permit aplication fee) on top of their freedom? YEAH, that would make them think twice before they become taxi owners/drivers. There would immidietly be demands for rate increases,since nobody would be making money.I myself would quit driving- I would probably make more flipping burgers at Burger KING. This will also rob the taxi owners of their years of hard work. Most of them have paid for their permits by saving up from driving them.Most of them still drive. A good number of them have been in this business for decades.Actually the Municipalty (taxpayers)would be liable for reimbursing for the value of the permits. It would be,us,the drivers that would get SCREWED out of our jobs.

Comment by: Tim at February 4, 2007 12:20 AM

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