Using Actual Taxi Data for Regulating Taxicab Services

1. Using Actual Taxi Data for Regulating Taxicab Services IATR Annual Meeting Washington D.C. November 17th, 2012 Ray A. Mundy, Ph.D.

2. Why regulate taxis at all ???Why does government interfere with the private market? • Serve the Public’s Interest • Ensure safe and economical per-capita transportation to residents and visitors • Provide a positive image and service within the community • Ensure equal access to a public service

3. Creating Service Value with Taxi Permits • Dr. Paul Dempsey, in summarizing the empirical data from these researchers' studies and other commissioned studies[1], listed the results of taxi deregulation in 21 major U.S. cities prior to 1983. These were: • A significant increase in new entry; • A decline in operational efficiency and productivity; • An increase in highway congestion, energy consumption and environmental pollution; • An increase in rates; • A decline in driver income; • A deterioration in service; and • Little or on improvement in administrative costs.[2] [1] Dempsey, Paul Stephen, " Taxi Industry Regulation, Deregulation & Regulation: The Paradox of Market Failure" Transportation Law Journal, University of Austin, College of Law, Austin, Texas, Volume 24, #1, Summer 1996, p.102 [2] Dempsey, Op. Lite, p. 102

4. Dealing With Medallions • Medallions are “non value” aspects of taxi service • Must be taken into consideration • Regulation need not be a guarantee of ever increasing value • Economic “burden” on each trip or fare needs to be known

5. Regina, Saskatchewan Example • Value of taxi plate = $130,000 • Lease rates are between $1,000 to $1,000 per month = $33 to $40 per day • When a Regina taxi makes 40 trips per day, and the average fare is $10.00, the per trip cost of the plate is $1.00 per trip • User pays medallion holder $1.00 per trip

6. TTLF Continuum of Taxicab Firms #1 Total Taxi Firm #2 Taxi Firm/ Vehicle Lessor Taxi Company Orientation #3 Permit and Vehicle / Only Lessor #4 Permit Owner / Operator Independent #5 Permit Only Lessor Individual Driver Orientation

7. Evolution of Taxi Service Basis for Decision Making • Taxicab permits as a ratio of the population • Use of secondary information to “estimate” taxi service demand • Use of “Actual” taxi demand data decide upon total number of permits and allocation of permits

8. Population Analysis Source: Bruce Schaller (Journal of Public Transportation , Volume 8, No. 5, 2005)

9. Regression Analysis Schaller Taxi Demand Model – Schaller, Op city, p.5

10. Analysis from Actual Demand Data • Explosion in availability of electronic data • Can use paper data if time and money permit • Ease of analysis • Recall objectives from reason to regulate • Measure against these objectives • Set standards of service performance • Reward those who add value to their permit

11. Distribution of the Average Number of Daily Dispatched Trips completed per Driver

16. Taxi Company A Trips Taxi Company B Trips

18. Summary • Technology is changing the taxi industry • Taxi data bases are readily available • Regulators need to embrace and use the data • Elected officials need to understand why • Regulatory agencies should use actual demand to allocate taxi permits & determine total number • Regulatory agencies should use actual cost/revenue data to determine fares

19. Questions & Discussion