Rising gas prices cripple New York taxi drivers (Reuters)

[Up2Late]

(I hope this isn't considered too local, because it seems like something that could eventually effect a great number of people in this country)

Rising gas prices cripple New York taxi drivers

Fri Aug 4, 2006 05:30 PM ET

By Abha Bhattarai

NEW YORK (Reuters) - For most Americans the rising price of gas has been a major headache, but for the 42,000 men and women who drive New York City's famed yellow taxis, sustained high fuel prices have endangered their livelihood. And slowing economic growth could make the matter worse.

Skyrocketing gas prices, which have risen to $3.29 a gallon (87 cents a liter) from roughly $2 a gallon (53 cents a liter) two years ago, mean New York cabbies now dish out an extra $15 or $20 to fill their gas-guzzling 8-cylinder Ford Crown Victorias every day. A full tank of gas now costs about $50.

Drivers say their take-home pay has been cut to $90-$120 for a 12-hour shift -- meaning they earn between $7.50 and $10 an hour to navigate Manhattan's stressful streets. "Gas prices are killing us," said Ali Ahmed, a 25-year-old driver from New Jersey who works seven days a week. "We used to make $1,000 a week, and now, after gas we barely bring home $800 or so. That's a 20 percent drop. That's huge."

Taxi tariffs have been unchanged in New York, America's most expensive city to live in, since 2004 when the average fare was increased by about 23 percent. Los Angeles, Philadelphia and Washington have added a fuel surcharge to cab fares to help defray higher gas cost. Efforts by taxi unions for a New York gas surcharge have failed.

(more and page 2 at link) <http://go.reuters.com/newsArticle.jhtml?type=topNews&storyID=13091001&src=rss/topNews>

[TomInTib]

1. So why doesn't NYC raise rates?

The city's taxi rates are the best deal in the country.

[brokensymmetry]

3. And when they do...

they risk reducing tourism and other areas of
commerce.

Welcome to the ripple effects of high energy
prices. One price increase leads to another
and another - until some tipping point is
reached.

Peak Oil cometh.

[TomInTib]

4. Well, first things first...

Taxi rates have no effect on tourism.

La Guardia or JFK to Manhattan/Times Square is what it is. The taxi rates are a drop in the bucket in relation to your total cost of trip. If taxi rates are the deciding factor on where you might go, you (and I don't mean you)obviously cannot afford to travel.

Gas prices have a much more personal impact than those in taxi rates (price of goods, etc).

We are past Peak Oil. That shit is already at around $400bbl when the military costs are figured in.

So those of us who live on royalties are already fucked.

[krkaufman]

8. "when the military costs are figured in." - effing THANK YOU.

I grow so weary of people whining about the price of gas, and friends who say that there wasn't a demand for hybrids or electric vehicles. If the price at the pump reflected the TRUE cost of the delivery of the gas, you can bet your bottom dollar that there'd be hundreds of thousands of EVs on the road today.

[TomInTib]

9. That is the factor that just flies past most conscience

The military costs involved in getting the product thru the Straits is mind-boggling.

That cost is deducted from the cost of every paycheck in the US.

Those of us who do not get paychecks and are left to our own accounting device(s) skate on that hidden cost.

And that cost is astronomical.

Why this is not a major issue is beyond my ken.

[Deja Q]

10. I doubt it...

Prices for baseball tickets still go up so Pohlad and A-Rod can rake in big salaries. It's never stopped people from buying. Except for a brief moment of hope in 1994... but fortunately (for them) it didn't last too long.

If peak oil is real. All we are seeing right now is manupulation and greed.

[smirkymonkey]

5. I always tip them a few dollars extra because I know that they

are undergoing a crunch and it's not like I take a cab everyday.

[Warpy]

2. Time for a wildcat strike

and it only has to last one day. Let all the yuppies get squashed on the subways for one day.

They'll get their surcharge FAST.

[kestrel91316]

6. News flash for taxicab companies: Try out the PRIUS!!!!!!!

There are some Prius cabs working out of the Burbank airport in LA. Pretty cool. No gas worries.

[htuttle]

7. Here's the equation (from someone with 19 yrs in the cab bidnez)

The choice is thusly:

Old Police/Fleet Car (lower maintenance due to heavy duty parts, higher gas cost due to 13-16 mpg, low initial cost -- less than $5,000, 5 passenger capacity=more fares)

VERSUS

Prius (lower gas cost, higher maintenance, MUCH higher initial cost,3-4 passenger capacity=less fares than a 5 loader, and do YOU know any fleet mechanics who know how to work on huge electric motors?).

So far, the equation is still tipping in favor of the old cop car, with minivans as a compromise of sorts, since it would take too many years to pay off the Prius. That might change any year, however (probably around a $4.00-$5.00 gas price)

They're able to run really cheap ($6,000 brand new), ELECTRIC 7-loader cabs in India. However, with a max speed of 40 mph, they don't work for the US taxi business yet (too many exurbian fares requiring freeway travel).

Cop fleets will undoubtedly switch fuels before the cab business does, if things remain as they generally are (if not, hell, we might end up pulling rickshaws). Most cab companies/operators get about a 3-4% profit on a good day, so I don't expect them to be out in front of a sea change in transportation fuels (except in India, where the taxi biz really lets it's hair down...).

It's great that someone is trying to run some hybrid cabs in Burbank, but they must have some real money behind them -- as far as industry norms are concerned, they are taking a big chance...I would assume they are counting on being seen as a 'green' taxi company to bring in enough extra fares to make it pay.

[lithiumbomb]

11. question for you htuttle

The ubiquitous Crown Vic's days are probably numbered in a few years, and so will end the last tough body-on-frame passenger car in this country. Will there be a new "standard" to follow? Or will operators just migrate to whatever else fits into their meager budgets?

Here in Atlanta anyway, the standard used to be the GM full size RWD platform (the '77 - 91 square ones) (often cobbled together basket cases of cars) but after those wore out, plus a 7 year age limit, it's been Crown Vics ever since. One local cab company has tried new CNG Crown Vics in the mid 90s, but now seems to stick with the used Crown Vic interceptors.

[htuttle]

12. I'd guess minivans are the next thing

We're about 80% Crown Vics right now, and the rest minivans (about 1/2 converted to 'ramp-in-rear' accessible vehicles).

The new Caprices are too small in the back (though they get better mileage) according to common wisdom, and that leaves the Fords, which nobody really likes 'cuz Ford parts cost almost twice as much.

The minivans are nice due to higher mileage and the possibility of putting in a wheelchair ramp. The drawback is their front wheel drive transmissions don't hold up through 100,000+ miles of city traffic. Plus, they're more expensive at the outset.

As I mentioned above, taxi fleets tend to follow municipal fleets since they get rid of cars at 100K miles, auction them for about $4-6,000, then we run them up over 300K (at our shop, anyway). If you save almost $20K on the purchase of a vehicle by getting it used, it takes a LONG time to make that up via savings on gas. So whatever the cops drive, we'll drive next, for the foreseeable future.

Re: CNG -- I think there is going to be a lot of skepticism over new fuels in the taxi business ever since the whole propane debacle in the late '90's/early '00's (fleets did a lot of propane conversions, then the price of propane skyrocketed...).

[kestrel91316]

16. If I needed a cab at Burbank, I would favor a Prius over a gas hog.......

"It's great that someone is trying to run some hybrid cabs in Burbank, but they must have some real money behind them -- as far as industry norms are concerned, they are taking a big chance...I would assume they are counting on being seen as a 'green' taxi company to bring in enough extra fares to make it pay."

Here in LA a lot of people may not have the money to buy one for themselves, but they will gladly support businesses that use them. We can afford to choose green.

"So far, the equation is still tipping in favor of the old cop car, with minivans as a compromise of sorts, since it would take too many years to pay off the Prius. That might change any year, however (probably around a $4.00-$5.00 gas price)"

I think the $5 mark will get some action going. People are already starting to scream at $3.50.

[Gormy Cuss]

13. They're already in NYC

Toyota Highlander and Prius models are in use on a small scale basis.

[sarcasmo]

15. The Prius has a narrow wheel base and will not hold up.

Speaking from experience, eight years to be exact. City driving with multiple stops quickly wears down a car. The Prius over the long haul would not hold up it might last two years before it started to nickle and dime you to death and that
destroys the profit margin of any cab driver/ owner.
Fuel surcharge would be the best way, adding three dollars or whatever the price of fuel is to each fare/cab ride. Trucking companies currently add a fuel surcharge and that is what the cab drivers need. Riders will understand a fuel surcharge, raising the rates is never a good idea.

[Up2Late]

14. kick n/t

:kick:

[savemefromdumbya]

17. They should protest

get a friend to run their cabs for them while they go down to the White House and protest