Tuesday, November 16, 2010

MHA 2010 Meeting

The Medallion Holders Association held its annual meeting Monday at the Mars Bar and Cafe.

A nice buffet which included hot wings, hors d'oeuvres and delicious hamburgers seemed to be enjoyed by just about everybody. Board member Mike Spain briefly summarized his plan for peak-time medallions and President Carl Macmurdo discussed various subjects and strategies important to the members. But the highlight of the evening was an appearance by Deputy Director of Taxi Services Christiane Hayashi.

Showing her usual charm and charisma, the director fielded questions and used them as a springboard to express her thinking on various topics. Not necessarily in order, these included:

The Fixed Price for Selling Medallions.

Hayashi said that she liked the fixed price because:
  • It's unique to San Francisco and other cities have shown an interest in it.
  • The price is low enough to be affordable for drivers. 
  • It thus allows buyers to get reasonable loan options.
She pointed that in New York, where medallions often sell for $500,000 or more, only high interest loans with balloon payments are available and that buyers rarely succeed in paying off their loans.

One medallion holder said that the $150,000 that a holder would clear by selling the medallion would not be enough to retire on.

Ms. Hayashi responded by saying that the medallion sales were never intended to be a retirement but rather a way to help people retire in conjunction with other savings.

She added that she didn't expect the Fixed Price to go over $300,000. Otherwise medallions would no longer remain affordable for working drivers.

Peak-Time Medallions

After hearing plans about peak-time medallions for as long as I've been in the cab business, it looks like an idea whose time has come.

Director Hayashi said that people in city government wanted to see it happen so it will - probably early next year.

Various plans for how this will happen are being discussed at TAC but she did say that her plan called for the peak-time medallions to be leased from the MTA.

Not, on the other hand, a popular idea among MHA members.

Watch Those Flashers

Medallion holder Norma Greer had recently written to Hayashi about being harassed by a policeman when she tried to drop in a bus stop. The cop also threatened to cite her for using her flashers illegally.

The director said that she looked up the law and there is indeed an obscure vehicle code against using the flashers for anything except emergencies.

Hayashi said that it was legal to drop in a bus stop - as long you pull "as far forward as possible." She also said that she would discuss enforcement policy with the PCOs (meter maids).

In the meantime, she added that you should fight any such tickets and report the incidents to her office. It's also helpful to get the badge number of the officer involved.


Electronic Waybills and Credit Cards

Hayashi said all taxis would probably have electronic waybills installed by the first quarter of 2011. She added that Luxor and Yellow Cab were already equipped to handle them right now.

She expressed enthusiasm for the new technology because "we'll be able to gather accurate information" about the number of rides and so forth "for the first time ever." This could prove invaluable to the Controller's office in helping to figure out how to improve taxi service.

Ms. Hayashi also said that systems for handling credit cards would be installed on the back seat of some cabs at the option of each company.  One such system, VeriFone, would:
  • Allow the customers to swipe the cards themselves.
  • Prompt the customer for a tip.
  • Automatically transfer the funds into a driver's bank account.
There would be a 5% charge to the driver but Hayashi says that studies have shown that drivers make more than the additional 5% off the tips because of the prompting.

She also said owners and medallion holders could use other systems if they wanted - citing Yellow Cab that has chosen to keep their own system - but, in such cases, it would be illegal to pass the credit card charges onto the drivers.

This naturally segued into ...

Calling 311

Director Hayashi went on to say that every cab driver in San Francisco was required to take credit cards and, if they didn't, other drivers should report the culprits on 311. She also added other crimes such as being rude to customers or reckless driving to the list of things that should be reported.

So ... next time you see a cab driver holding up a customer with a Uzi be sure to call 311.

(Okay. Okay. Off with the sarcasm.)

I did point out to Hayashi that my information was that the taxi drivers, who were turning down credit cards, mostly drove for companies that were illegally charging the drivers 10% - 12% per transaction.

Hayashi said that we should let her know which companies were doing this.

Taking her at her word - the number to call (if your company is illegally charging you for credit card transactions) is 415.701.5235

In the past, Ms. Hayashi has promised anonymity and protection to any driver who makes a complaint against a company. I've never known her to go back on her word.

8 comments:

  1. This is the best piece you've written in weeks Ed.

    Some FYI. This morning Wells Fargo Bank called my office to inquire as to how we process our credit cards. The gentleman on the phone claims that Wells is making the rounds because after January 1st, all SF taxis MUST accept credit cards (no comment toward me is necessary, I'm just saying what he told me).

    I hear horror stories about credit card fees from applying drivers and medallion holders at the Green office every day. My shameless plug is as follows; Green Cab does not charge any fees or surcharges for credit cards. We are already fully compliant for e-waybills and we have the fastest, signature free (swipe and go) cc processing in the City right now. We do not require drivers to have their own accounts and have no intention of doing so.

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  2. Ed,

    I forgot. About Uber. They will have a limited market and possibly limited lifespan. They are charging a substantially higher "fare" than a medallion taxi. They are offering a premium service and the technology is becoming less exclusive every day. Eventually they will be undercut by shoddier operators. That could present a whole new problem for our industry and our regulators but Uber will in my opinion, will either become a very high end service or will devolve to an ineffective minimum. We succeeded in the most important part which was to get them to stop using "cab" or "taxi" in their advertising. Cabs are required to transport the general public. That is the elderly, para-transit, grocery shoppers and people on crutches. Uber is not and they never will capture that market. What they will effect from this point forward are the corporate services such as Corporate Express, Music Express, Carey, etc. Those interests have a lot of money so I'm betting on them.

    Athan

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  3. PEOPLE ARE WORKING SLOW TIMES SO THEY CAN MAKE SOME PROFIT AT THE PEAK TIMES. TAXI DRIVING IS LIKE A BUSINESS. SOMETIMES SLOW AND SOMETIMES BUSY.

    INSTEAD OF TALKING ABOUT HOW TO MAKE THIS BETTER FOR DRIVERS WHO ARE ALREADY SUFFERING FROM A BAD ECONOMY THAT IS NOT PICKING UP (IT WILL TAKE TEN MORE YEARS TO GET ALL THE MILLIONS OF JOBS THAT ARE LOST NOW), IT IS BEING DISCUSSED WHAT CAN BE DONE TO GIVE OUT MORE MEDALLIONS AND ALSO WHAT CAN BE DONE TO IMPROVE SERVICE TO THE PEOPLE.

    THE VERY CORE OF THIS INDUSTRY THAT IS THE "DRIVERS" ARE BEING RAPED.

    WHAT A NON SENSE IS THIS?????????????????????

    AS WE ARE A PART OF MTA LET US TALK ABOUT MTA GIVING FULL MEDICAL AND DENTAL TO ALL TAXI DRIVERS.

    LET US TALK ABOUT HOW WE CAN HELP CAB DRIVERS MAKE BETTER MONEY THAN MINIMUM WAGE EARNERS.

    LET US TALK ABOUT HOW SHIFTS SHOULD BE 8 HOURS NOT 12.

    LET US TALK ABOUT HOW TO ADVERTISE 20% GRATUITY AS AGAINST THE LAST CENTURY DEGRADED 10% GRATUITY TO CAB DRIVERS.

    LET US TALK ABOUT HOW TO EDUCATE CAB DRIVERS ON REDUCING STRESS LEVELS DURING WORK.

    LET US TALK ABOUT HOW TO CURTAIL SPEEDING HABITS.

    LET US GIVE ENOUGH PROFITS SO SPEEDING MAY NOT BECOME A NECESSITY.

    LET US TALK ABOUT THE "DRIVER".

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  4. I just checked www.cabulous.com and studied the map showing where the cabs are. They have exactly three cabs in SF on their system at 1:00 PM Wednesday.

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  5. I got a ticket and I'm fighting it. I sent in my letter to contest. It was dropping off a passenger in front of the ferry building and the DPT person took my cab number down from a distance. Then, he mailed it to Yellow Cab. The ticket said I was "blocking the crosswalk". But the crosswalk in front of the Ferry Building is huge, so I couldn't realistically have "blocked" it. Then I did a quick Google search and found that a California Vehicle Code allows stopping temporarily in crosswalks if it was to get out of the way of traffic or for loading or unloading passengers.

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  6. Hmmm. As of mid November it looks like UberCab is still using Cab in their name to me. Just text UBR-CAB to schedule a ride from them.

    http://www.theatlantic.com/technology/archive/2010/11/hailing-a-cab-with-your-mobile-phone/66630/

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  7. Athan - thanks for the kind word about the post. I guess you like my reporting better than my confused politics. I'm inclined to agree.

    I'm also inclined to agree about Uber. The important thing is that we have to learn to use the new technology ourselves.

    Anon - I also think the average drivers are being screwed.

    John - it's a mistake to think that cops know the law. I once got a ticket for making a U-turn in a "residential" district.

    But this was just a pretext. The cop actually stopped me because "cabbies transport cocaine from that address all the time. Then, they lie about it when you stop them."

    I'd dropped at an address across the street. He accused me of using heroin when I "lied about" transporting the cocaine he couldn't find in my car.

    Chris is right. You have to fight these tickets. I eventually managed to get this particular cop to go through a re-training program. He had around 30 other complaints against him. If only I'd had 311.

    I should check and see if he's still on the force.

    Ed

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  8. First of all, being a cab driver, you are hated. It is worse if u r colored! I was pulled over so manytimes for having an exhaust and the car is being shiny and clean. Welcome to the land of the free!
    David

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