New Taxi Company To The Rescue?

[Regulator75]

http://globalnews.ca/news/1410109/ne...se-cab-crunch/

A new Calgary cab company is promising to make it easier for people to hail a taxi.

Rupinder Gill has been driving cabs for 26 years, but says he became frustrated by problems within Calgary’s taxi industry.

His solution was to start his own employee-owned company called Calgary United Cab.

Gill compares Calgary United Cabs to WestJet, saying each driver has shares in the brokerage and is a part owner.

It’s a company model that Gill predicts will lead drivers to promptly answer calls and give better customer service.

“We answer the phone on the first ring,” says Gill.

Video embedded in link.

[irrevocable]

Much needed, if it works out. Associated and Checker need a kick in the ass.

[RW99]

No new licences, so I don't expect much. How do other cities with plenty of cabs not have to worry about having drivers lose money as they say they will here? Higher rates?

[vanisleflamesfan]

I will drink (until I've had too many and can't drive home and need to call a cab) to this news!!!

[The Yen Man]

Why is the city trying to regulate how many cabs are on the street? Why should the city even care? Just issue the god damn licenses already, and let the cab companies worry about whether or not the cabbies can make a living or not.

[Hockeyguy15]

I downloaded their app, I'll give them a shot next time I need a cab.

[GGG]

If you regulate the price I think you need to regulate the supply.

The solution to that is to get rid of price regulation as well. Perhaps you have a minimum price to prevent a race to the bottom.

[Slava]

Originally Posted by GGG

If you regulate the price I think you need to regulate the supply.

The solution to that is to get rid of price regulation as well. Perhaps you have a minimum price to prevent a race to the bottom.

OK, why? The city can set prices and frankly if a million people want to work within those guidelines, or at least think they can, where's the issue?

I would be more concerned about pricing getting out of control the other way (too high), and setting a maximum makes more sense to me.

[GGG]

Originally Posted by Slava

OK, why? The city can set prices and frankly if a million people want to work within those guidelines, or at least think they can, where's the issue?

I would be more concerned about pricing getting out of control the other way (too high), and setting a maximum makes more sense to me.

You need a minimum because the things that will get cut to compete for cars will be safetey related in cars. So to maintain a minimum standard of safety I think we need a minimum rate of charge. Essentially like any other minimum wage.

The problem with a maximum is that it restricts individuals ability to make profits if you want to end protectionism you have to give up cost certainty for the buyer. If you put in a maximum fair the city still effectively regulates supply. Increase the max more cars are on the road, decrease the max and less cabs are available.

[Slava]

I don't see the issue though. We could control the safety regulations and police that side of things. If an operator wants to cut his price to try to become busier (which seems like it would be completely unnecessary at this point!), then why not let him? It's simple supply and demand. There is no need for regulatory interference here as far as I can see. It looks like it works for a few major owners and the services to the public are just terrible.

I have zero doubt that the incidence of drunk driving increases when the cab shortages are the most pronounced. It's just so ineffective I can hardly see the point of continuing to restrict licenses.

[4X4]

The cab situation in this city has been a complete disaster for as long as I've been old enough to drink. That's about 17 years that I've been counting. It just blows my mind that for so long, and with the amount of drinking and driving media coverage, that this is still so pathetically ridiculous.

I heard an interview on QR a few weeks ago with an alderman, and he said that he's "never had a problem getting a cab". Yeah f'n right. Apparently he's never gone anywhere on a friday or saturday night. I've waited on hold for over an hour just to get through, and then been told that the ETA was another hour.

It seems like such an obvious thing to fix. Just fix it! Hand out more licenses, and let the market figure it out.

[GGG]

Originally Posted by Slava

I don't see the issue though. We could control the safety regulations and police that side of things. If an operator wants to cut his price to try to become busier (which seems like it would be completely unnecessary at this point!), then why not let him? It's simple supply and demand. There is no need for regulatory interference here as far as I can see. It looks like it works for a few major owners and the services to the public are just terrible.

I have zero doubt that the incidence of drunk driving increases when the cab shortages are the most pronounced. It's just so ineffective I can hardly see the point of continuing to restrict licenses.

Just to be clear I am not defending the current system at all. I would love to see an unregulated cab market but I think minimum pricing, ensuring a living wage for drivers, is important for customers as much as drivers.

[Slava]

Originally Posted by GGG

Just to be clear I am not defending the current system at all. I would love to see an unregulated cab market but I think minimum pricing, ensuring a living wage for drivers, is important for customers as much as drivers.

I guess I would be fine with minimum and maximum pricing, but unlimited licenses as well. I have no idea why we have a limit to begin with, so I might be wrong on that point. I just can't see the point of the limit.

[Table 5]

They usually give some BS safety/maintenance reason or another, but in NYC, I know that one of the biggest reasons cabbies don't want to change the way things operate fundamentally, is because the medallions (ie licenses) themselves are so valued, they are worth hundreds of thousands of dollars. So at this stage those things are pretty much their investment plan...and for a lot of people there's huge money to be lost if the value of an individual license goes down. I wonder if that's the same underlying reason in Calgary.

[4X4]

Originally Posted by Slava

I guess I would be fine with minimum and maximum pricing, but unlimited licenses as well. I have no idea why we have a limit to begin with, so I might be wrong on that point. I just can't see the point of the limit.

Yup. It's ridiculous. I can't even think of a reasonable reason for the limit. And if one person even tries to mention some bull##### about "planning ahead", I'll give that person 10 scenarios that are un-plan-ahead-able when a cab should be available within 15-30 minutes.

It's like the stone age over here with cabs. I got denied on the weekend for a ride to the deep south by a cabbie. He didn't want to leave downtown. Fair enough. He's gonna make more money staying in the core. But it took about 40 minutes to get another cab. Plenty drove by, but none of them had the light on. Something tells me that if there were a few more cabs on the street, there might have been an unoccupied one, and someone would have been inclined to take my $50 to get home. And it's times like that when people say f-it, and they drive home themselves.

[SebC]

Originally Posted by GGG

If you put in a maximum fair the city still effectively regulates supply.

Originally Posted by GGG

If you regulate the price I think you need to regulate the supply.

This comes across to me as a contradiction.

====================================

Originally Posted by Table 5

They usually give some BS safety/maintenance reason or another, but in NYC, I know that one of the biggest reasons cabbies don't want to change the way things operate fundamentally, is because the medallions (ie licenses) themselves are so valued, they are worth hundreds of thousands of dollars. So at this stage those things are pretty much their investment plan...and for a lot of people there's huge money to be lost if the value of an individual license goes down. I wonder if that's the same underlying reason in Calgary.

That's certainly a part of why it's hard to get rid of the license quota, but it doesn't explain why the system exists in the first place.

[Dynamic]

I was shocked when I heard how the cab system works. Basically the biggest hurdle is just getting a license. A guy I golfed with told me a license even in edmonton or calgary is worth 250g. In Vancouver a license is worth 500g (I can't remembers the numbers exactly). These licenses are sold on this cab owner black market. Every once in a while the city will release more licenses and if you win the lottery you get a license. Just seemed like a very shady system to me .

[getbak]

Is there anything preventing a company like Lyft from starting up in Calgary?

[4X4]

Does CP have a cabbie that wants to chime in? The rest of us get defensive when our industries get talked about, how can there not be a cabbie on here?

Oh wait, I know why. Because there are no bloody cabs in this city.

[#-3]

Came here to see people complain that without more licences it wont make a difference. Only took 3 posts.