Taxi companies can charge up to $2.50 per mile under new rate set by Ann Arbor City Council
Washtenaw County resident Thomas Partridge argued against an increase in local cab fare rates Monday night, but that didn't sway the Ann Arbor City Council.
In light of rising gas prices, council members voted in favor of a resolution setting a new maximum allowable rate of $2.50 per mile in the city limits — up 25 cents.
Stephen Kunselman
"Any increase in taxicab rates harms the most vulnerable residents first," Partridge cautioned. "These rates are of critical concern to the most vulnerable residents."
The flag drop fee — the flat amount charged in addition to the mileage rate — remains $3, and the waiting time fee remains at $24 per hour.
At the city's Taxicab Board meeting on April 28, representatives of six taxicab companies spoke in support of a rate increase to deal with the increased volatility of gas prices.
The existing rate structure was approved by the City Council in May 2008. Since then, gas prices have soared above $4 per gallon and are expected to continue to rise, said Sarah Singleton, the city's Taxicab Board secretary.
Given the volatility in gas prices and the length of time it takes for rate changes to be discussed and approved, Singleton said the board opted to recommend a "significant rate increase" with the understanding that it only establishes a maximum rate companies can charge. If and when fuel prices are lower, she said, companies can opt to charge lower rates.
Singleton said the board doesn't anticipate considering another rate increase until gas prices are above $5 for at least two consecutive months.
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's e-mail newsletters.
Comments
SillyTree
Thu, Jun 30, 2011 : 11:25 a.m.
The problem is with the city. They chose to loosen the regualations and not limit the number of taxis in town, but they still regulate the fares. You can't do that and have it work. The reason rates are regulated is because competition is supposed to be limited. It used to be a trade; we'll give you a degree of exclusivity, buy can't take advantage with outrageous fares. It's like a public utility. There isn't room for free market competition to set the price. People will undercut and companies will come and go. There would be no stable operators. They should go back to a fully regulated system or give up regulation all together. This is a half baked solution.
Dixborodad
Thu, May 19, 2011 : 1:19 p.m.
Unfortunately, the higher fares also discourage folks from taking taxis (when they should be) after evenings out on the town. I also agree with the math previously presented. Maybe the council's solar calculators weren't working the day they voted. The rate hike is not commensurate to the rise in fuel cost and is a huge windfall on the part of the cab companies. I also agree that it does very little to encourage exploration of alternate or more fuel efficient vehicles as seen in so many other cities. Instead, the city could have perhaps offered a tax break (though that may be easier said than done in these tougher economic times) on converting old fleets to hybrid or more fuel efficient vehicles, helping the cab companies, keeping fares down, and helping the environment all at the same time.
Skyjockey43
Wed, May 18, 2011 : 8:59 a.m.
Wow, so much vitriol over a fare increase of 25 cents. I know, maybe we should form a public sector union and have our pay directly paid by all taxpayers. Then when we want an increase, we'll all throw a massive protest in Lansing, damage property, threaten public officials, and cost those same taxpayers millions of dollars in security and clean up. Then I'm sure we'll see the whole country throwing hizzy fits over the audacity of government coming down on the poor working man, and all the dissenters on this board will throw us a party the likes of which would make Cesar Chavez proud.
diagbum
Tue, May 17, 2011 : 7:30 p.m.
Increasing the meter rates only hurts the consumers. There is too much competition in the marketplace, that is why drivers are making less these days. If taxi companies profits are down, then management should explore lowering costs. Also yellow cab buys 20,000 gallons of fuel at once, and pays over a $1.00 less per gallon than the prices at the pump.
SillyTree
Thu, Jun 30, 2011 : 11:20 a.m.
Can you verify that Yellow gets that substantial of a discount? I don't believe any gas station gets their gas at a price where they make a $1 per gallon profit. That's insane. I wouldn't make a statement as bold as that without proof.
Joslyn at the U
Tue, May 17, 2011 : 7:47 p.m.
By the way..............Class B Limos lisenced by the state of Mich are the same types of vehicles someone else loosly reffered to as "gypsy" cabs
Joslyn at the U
Tue, May 17, 2011 : 7:43 p.m.
Oh as we speak yellow cab is now installing fire extinguishers in all theyre vehicles that are taxis because they are about to become lisenced CLASS B LIMOS lisenced by the state of mich. I guess Yellow is sick of Ann Arbors mismanagement as well. Theres a newsflash for you!
Joslyn at the U
Tue, May 17, 2011 : 7:40 p.m.
Wow and yellow cab was the one crying about they need a rate increase? interesting
rusty shackelford
Tue, May 17, 2011 : 5:47 p.m.
Wow. These rates are ridiculous. Charging more than both Chicago and New York. Really? Gas and cost of living are higher here than in NYC?
diagbum
Tue, May 17, 2011 : 9:43 p.m.
Yep! And closing in on rates in Honolulu, Hawaii! Unbelievable! <a href="http://honolulu-taxi.com/rates.html" rel='nofollow'>http://honolulu-taxi.com/rates.html</a>
rusty shackelford
Tue, May 17, 2011 : 5:48 p.m.
<a href="http://www.cityofchicago.org/city/en/depts/bacp/supp_info/passenger_information.html" rel='nofollow'>http://www.cityofchicago.org/city/en/depts/bacp/supp_info/passenger_information.html</a> <a href="http://www.nyc.gov/html/tlc/html/passenger/taxicab_rate.shtml" rel='nofollow'>http://www.nyc.gov/html/tlc/html/passenger/taxicab_rate.shtml</a>
pest
Tue, May 17, 2011 : 2:54 p.m.
Tru2Blue - in case you didn't see my reply Meter rates and accuracy are checked by the city once a year or when there is a new taxi put on the road. The fare amount might vary depending on traffic because when the taxi is stopped for lights or for traffic the meter will continue running. something like 40 cents a minute. also make sure it is a real taxi and licensed by the city. if it does not have a sticker or bond plate it is not a licensed taxi. there are a lot of limos in town that say they are taxis and there are also a lot of what is called gypsy cabs. a two mile ride should cost roughly $8 to $9 dollars with the new rate, depending on traffic. Before the increase it cost roughly 50 cents less for the two mile ride.
Joslyn at the U
Tue, May 17, 2011 : 5:37 p.m.
Again: Suggestion: check with a state licensed Class B limo company and you may find locally that the rate they (gypsy cabs) charge is in fact lower than city taxis. Dont believe the hype. The Taxi companies in Ann Arbor are bending us over ROYAL. I personally use a local company quite often that is licensed by the state rather than the city. They are always ready to charge less than the local taxis. Just ask for a flat rate. If its not less the reputable comanies will still be right in line with the standard city rates.
ChunkyPastaSauce
Tue, May 17, 2011 : 2:34 p.m.
"The existing rate structure was approved by the City Council in May 2008. Since then, gas prices have soared above $4 per gallon and are expected to continue to rise, said Sarah Singleton, the city's Taxicab Board secretary." Historical Ann Arbor average pump gas price for may 17 2008 was over $4.00 .. or about what it is today (may 17) "In light of rising gas prices, council members voted in favor of a resolution setting a new maximum allowable rate of $2.50 per mile in the city limits — up 25 cents." Assume worst case fleet average gets 19 miles / gallon (in city rating for a crown victoria) -> 1/19 gallon/mile Assume 4.00 dollars/gallon for fuel -> it costs about 4.00* (1/19) to travel one mile or 0.21 dollars. In other words, the 0.25 dollars/mile rate increase by itself pays for all gas used... lol Assume the worst case again: lowest gas price in 2008, about 2.90, and the highest gas price this year, about 4.20. Then the board should have approved an increase of: (4.20-2.90)* (1/19)= 0.07 dollars/mile. Every time the city approves an increase in taxi rates due to 'fuel costs' it is a setback to the green initiative; it slows fleet conversion to fuel efficient and alternative fuel vehicles. "If and when fuel prices are lower, she said, companies can opt to charge lower rates." Yeah right lol.
SillyTree
Thu, Jun 30, 2011 : 11:17 a.m.
Not all miles are paid. It would be nice if they were, but there are empty miles as well. The driver has to pay for the gas whether they are loaded or not. It is typical that at least half the miles travelled are empty.
ChunkyPastaSauce
Tue, May 17, 2011 : 5:25 p.m.
CNG savings are mostly from fuel savings as NG is significantly cheaper per mile than gasoline. However, reduced engine maintenance savings adds up for fleet vehicles (due to the number of vehicles, number of mile per vehicle per year (much higher than personal use cars), and maintenance staff/equipment).
pest
Tue, May 17, 2011 : 4:37 p.m.
a well-maintained vehicle should get over 200K miles before its engine goes. so the only real cost savings I see is fewer oil changes, which is not a significant amount of money.
ChunkyPastaSauce
Tue, May 17, 2011 : 4:25 p.m.
Actually CNG is available at a few locations stations in ann arbor. Further it is available to at any structure that has a natural gas line since a cng fueling compressor can be installed meaning the central taxi office can do their own fueling; home owners sometimes install them. Oil changes are required less often and the engine internals last longer (oil not washed off cylinder walls and the oil is less caustic).
pest
Tue, May 17, 2011 : 4:04 p.m.
I forgot to ask - how is maintenance less? oil changes? trans? ball bearings, brakes, tires, front end work, alignment ty rods? is general wear and tear less?
pest
Tue, May 17, 2011 : 3:52 p.m.
I don't know much about cng but I do know that it is not available in a2. Also, I have nothing against fuel efficient vehicles like the prius, but they are small and do not have the seating or space for many people. btw, the driver is who pays for the gas, not the company. the company charges more to lease a prius than a standard vehicle. so having a prius is really not really any savings to the company - just in their ability to charge the driver more. there is only one taxi company in a2 that uses a prius
ChunkyPastaSauce
Tue, May 17, 2011 : 3:16 p.m.
If you been to larger cities youve probably seen a lot of taxi fleets use cng which is both cleaner, cheaper, and available for larger vehicles. Maintenance is significantly less than petrol vehicles too. Saving for a prius is made up by the savings (hence why taxi companies use them) .
pest
Tue, May 17, 2011 : 2:53 p.m.
like a prius? I'd rather ride in soemthing larger and safer. Not only that but they are very expensive to maintain. they are fine for one or two people max but often there are several people at once who are in a cab and there is no room
Tru2Blu76
Tue, May 17, 2011 : 2:22 p.m.
Is any agency actually checking the mileage charges of taxi companies? I seldom use taxis (a last resort) but there are routes I know are of a certain distance so I can work out the total fare easily. But - the actual fare I pay is always higher than the calculated amount and, more suspiciously, these fares vary from cab to cab on the same route (by over one dollar)! There was a period of weeks last January when daily temps were extremely cold. I had to take a taxi because my working hours were temporarily changed from the normal shift. Two-way rides cost over an hour of my wage for a distance of less than 2 miles each way. If I made the average U.S. wage ($22/hour) : this would be negligible. But the industry I work in has a top rate about 2/3 that amount. And - the companies in that industry work tirelessly to lower the top wage and the starting hourly rate. These companies would never, ever consider paying the average wage rate because they say that would make them uncompetitive. So - the above taxi expense will become more onerous for the 10s of thousands who get new jobs in that industry.
KathrynHahn
Wed, May 18, 2011 : 8:16 a.m.
Taxi meters run two prices, mileage and waiting time, as mentioned above. The more lights you get stopped at, the heavier the traffic, the higher the total fare. You can't "figure" your fare by mileage alone.
Joslyn at the U
Tue, May 17, 2011 : 5:35 p.m.
Suggestion: check with a state licensed Class B limo company and you may find locally that the rate they (gypsy cabs) charge is in fact lower than city taxis. Dont believe the hype. The Taxi companies in Ann Arbor are bending us over ROYAL. I personally use a local company quite often that is licensed by the state rather than the city. They are always ready to charge less than the local taxis. Just ask for a flat rate. If its not less the reputable comanies will still be right in line with the standard city rates.
pest
Tue, May 17, 2011 : 2:44 p.m.
Meter rates and accuracy are checked by the city once a year or when there is a new taxi put on the road. The fare amount might vary depending on traffic because when the taxi is stopped for lights or for traffic the meter will continue running. something like 40 cents a minute. also make sure it is a real taxi and licensed by the city. if it does not have a sticker or bond plate it is not a licensed taxi. there are a lot of limos in town that say they are taxis and there are also a lot of what is called gypsy cabs. a two mile ride should cost roughly $8 to $9 dollars with the new rate, depending on traffic. Before the increase it cost roughly 50 cents less for the two mile ride.
pest
Tue, May 17, 2011 : 2:09 p.m.
Great to hear. I depend on taxi and treat my drivers right. glad to hear that they are getting the increase. Id gladly pay it
ummsw
Tue, May 17, 2011 : 1:54 p.m.
A Ride through AATA./Select Ride is an option for the elderly and disabled, with reduced fares.
Veracity
Tue, May 17, 2011 : 12:02 p.m.
Jimmy McNulty: How about those people who have difficulty walking and others who are not so close to a bus stop nor can take a bus that will drop them off close to their destinations? While Ann Arbor has excellent bus service some areas of the city are serviced better than others.
Jimmy McNulty
Tue, May 17, 2011 : 11:49 a.m.
The rate increase does not sound unfair. I am curious as to who these "vulnerable residents" are that take taxis instead of the bus.
SillyTree
Thu, Jun 30, 2011 : 11:13 a.m.
There is a program available for seniors and people with disabilities to get transportation at a substantially reduced fixed rate that is not depenedent on miles travelled.