Foundation Activities in 2005

Financially, the Foundation started off modestly with a small contribution from the TLPA. Then, in 1990, TLPF received a generous contribution from the estate of long-time member Herman R. Tate of California to establish a college scholarship program for students committed to enter the taxicab business and to sponsor public policy research to promote our industry. It has been the interest from the nearly one-half million-dollar contribution and on going contributions from members that has given the Foundation a sufficient corpus to generate interest income to support its annual programs.

In 2005, TLPF produced three products that will be valuable resources for TLPA members for years to come. TLPF commissioned Dr. Ray Mundy of the University of Missouri-St. Louis to develop two research papers. The first, "Independent Contractor Taxicab Drivers" focuses on the value that independent contractor drivers bring to the transportation industry and how regulatory provisions can serve to enhance the service provided by independent contractor taxicab drivers. The paper goes into depth explaining the impact that different types of regulatory environments have on independent contractor driver performance and service delivery. Several examples illustrating the various dimensions that define the work environment in which independent contractor drivers operate are included. The paper provides an assessment of the regulatory mechanisms that define their legal presences, and is supplemented by examples to identify the impact of regulatory ordinances and contractual obligations on their market performance and behavior. It examines why drivers choose to become independent contractors, and why companies choose to use independent contractors. Case studies from two U.S. cities are included to highlight the independent contractor driver's role as part of transit and social service agency transportation. The paper concludes by emphasizing the very significant contributions of independent contractor drivers and their strategic advantage to the transportation industry as a whole.

The second research paper, "Benefits of a Full Service Taxicab Company to the Taxicab Industry and Consumers" focuses on the value that full service transportation companies provide to a community and what regulatory provisions serve to strengthen full service companies. TLPF's objective was to produce a document that members can present to regulators to educate them about how the taxicab industry operates with independent contractor drivers. Often, when a member describes his operations or argues against misconceptions espoused by regulators and consultants, his remarks are viewed as self-serving. This paper seeks to distinguish these different business models and critically evaluates the regulatory mechanisms that characterize such market structures. The paper begins with a brief introduction of the present economic environment in the United States followed by a detailed examination of the different business models that exist in the market. This is accompanied by an exhaustive assessment of the problems that plague the taxicab industry and the underlying causes for the same. Utilizing a theoretical framework accompanied by numerous case studies, a detailed comparison of the different business models is presented — with special focus on the functional criterions that define taxicab service and customer requirements. The paper concludes by emphasizing the urgent need for local regulatory authorities to reassess their present taxicab market structures and initiate changes in the legal framework (ordinances) that support the adoption of the full service taxicab company model.

The third product developed by TLPF is a video/DVD, "Fair Taxicab Regulation at Work." The purpose of the video is to promote fair taxicab regulation to better taxicab service in every city. "Fair Taxicab Regulation at Work" points out that city officials and passengers share the same goals when it comes to taxi service: adequate service to all areas and types of passengers, including seniors and those in residential neighborhoods; use of the latest technology to improve service; newer cleaner cars that are well maintained; a reasonable wait before pick-up; fair and consistent rates; and safe, dependable operators.

These goals are achieved with effective regulation that does not randomly issue permits, but instead supports full-service cab companies using independent contractor drivers. Effective regulation means that full-service companies provide 24-hour service and are capable of servicing the entire community. It means drivers must service all dispatched trips where safety is not an issue, including residential and short trips. It means limiting the number of vehicles in operation and requiring insured vehicles in good repair.

"Fair Taxicab Regulation at Work" has a running time of ten minute, and is intended for an audience of state and local officials, regulators and the community to demonstrate the adverse effects of poor taxicab regulation on the community and its citizens, and the positive effects of fair taxicab regulation. Aside from its obvious usefulness to regulators who are dealing with the adverse effects of a poorly regulated taxi structure, it can be used by taxicab companies to illustrate to their city officials, the immense value of a well-regulated taxicab industry.

After members had the opportunity to see a draft of the video at the TLPA convention in Boston, attendees were asked to evaluate it. More than 92 percent of those completing a survey form rated the video as excellent or good. Some of the written comments were: It is good — informative; Video targets message well and stays "on message" well; An excellent image of the industry; Concise, well-produced; It was complete and concise and covered the imperfect aspects of why regulations are necessary; Very distinctively states the problems that full service taxi company faces today; Eye catching, gets the message to the viewer; Great tool to educate regulators; It is a good representation of the benefits of a well thought out regulatory environment; It was informative about industry concerns and challenges; It addresses the needs of taxis and the importance of regulation to our industry.

When asked, "Is improving the regulatory structure of the taxicab industry in your area something that would benefit your company?" more than 87 percent of those responding answered yes. Comments included the following: In the field of regulating, improved regulations should benefit any company as well as improve service to the riding public; Better structure and services allow the drivers to focus on what they do best — drive. Asked if they thought that this video would be an effective tool in helping persuade regulators to better regulate the taxi industry in their locality, eighty-one percent of those responding said yes. The following comments were made: It gives regulators a good view into the taxicab industry in a quick and effective manner; It puts a visual effect on what we have been saying for years in our market; It shows most of the common problems most have; Gets the point home on advantages of staying with full service providers.

"Fair Taxicab Regulation at Work" will be sent at no charge to TLPA operator companies who renew their 2006 taxicab division membership by March 1 and or new taxicab members who join TLPA by the March 1 deadline.