Taxi and Ride share Regulation Information 2016 by A#1 Cab Dispatch

A#1 Cab Dispatch has been around since 1985, and all of their taxi owners pay commercial insurance, city license fees, plus state and federal taxes.

Meanwhile, the ride-sharing app companies don't have to pay these fees.

REGULATION

Taxis are first regulated by the State of Illinois, then by each municipality that decides to also regulate, because it's their choice to do so. It's not uncommon to see a taxi in the suburbs of Chicago with 10 different town license stickers. There is no uniformity to the licensing, the municipalities all want something different, including the amount of money charged.

Out of the 70 towns A#1 services, Hanover Park, IL.  is the only town that requires more than the State required insurance limits for taxis. For the additional $50k in coverage they ask for,  that would cost the vehicle owners an additional $900 per taxi- per year.  Hanover Park doesn't have any special regulations for ride sharing companies like Uber and Lyft but their taxi ordinance goes over and beyond for taxis. The worst part, if you email their trustees, there is no response! Towns like this make our industry angry. They don't care.

On the other hand, the town of South Elgin decided to de-regulate taxis because they didn't want to regulate one and not the other. Remember, taxis are regulated by the State FIRST. We applaud the towns that get it and care. 

Elgin didn't care for a level playing field either!

Pricing

Taxi's have established rates based on overhead expenses, and some rates are regulated by municipalities. The taxi drivers pay a flat lease fee to drive the taxi daily or weekly. The taxi owner pays the taxi maintenance, taxi licenses, and the commercial taxi insurance.

This year, 2016, all commercial taxi insurance rates went up. "Liability only" runs $3300 per year per car, and "Full coverage" is $4400 per year per car. Now imagine adding and additional $900 a year for a Hanover Park taxi license. NO THANKS! It's quite a difference from being an under-insured rideshare vehicle.

Taxi's also have to go though safety inspection stations and provide the report to various police departments for municipal regulation to deem the vehicle worthy of paying passengers.

Ride share vehicles don't have to do any of this. This is where the mileage price difference is between the two transportation services. Taxis cannot run at the same rate as rideshares, there is a huge difference in cost overhead. 

Wonderful Surge Pricing

Taxi's don't increase their price when it comes to peak hours. We use a meter. Simple. It doesn't matter if it's a busy day, snowy day or crazy day, all prices are the same.

Safety

Our customer's safety is very important to us. 

At A#1 Cab Dispatch we know who picks you up and where you are dropped off, in case something happens. With Uber, no one knows who's picking you up. So that's our difference. We know that the driver in the taxi is the same driver that was vetted to be in the taxi

We've had an owner operator show us a drivers "motor vehicle report" with a suspension 3 years ago and 2 moving violations in the past 2 years. The person wanting to drive a taxi said they were driving for Uber and assured her their background check was done. The owner operator told him, funny thing your driving record is no good, and can't be put on a taxi insurance policy. The Uber driver didn't understand there is standards in this industry. This is the type of background checks Uber is doing. Unbelievable. 

The sick part is, the politicians are OK with disclaimers like this below.

THE APP

 A#1 Cab Dispatch also has an app just like Uber, where people can use to connect with a cab. 

Uber has been hacked several times with peoples information being leaked all over the internet. This is the prime reason why A#1 Cab Dispatch will not process payment over an app. We are trying to protect the customer. 

80 cents a mile?

Uber and Lyft's driver frustrations are growing world wide over the wonderful prices they give the customer. They are working for volume. They are killing their drivers cars. Ride-share companies get to walk away with their 20-25% scott free, plus their safe riders fee. Wait, what the heck is a safe riders fee? Isn't that what background checks are for? But they have to charge every customer for every ride a safe rider fee? Even with all the sexual assaults and fatalities? What a joke. 

Basically, everyone wants a cheap ride in a Lexus. This is where the Walmartization of America comes in. I'm sure YOU have a job. I'm sure you want to be paid properly for the work you do. Maybe you've been doing the same work for 20 years and now a new company opens and says you're only worth half that price. How would you feel about that? Everyone wants the cheapest of everything. That's why there's Uber and that's why Americas industry has moved to China.  Rideshare drivers are so upset over their small cut they are filing Federal lawsuits trying to prove they're really employees of Uber. 

50 Federal Lawsuits

Uber has around 50 Federal lawsuits currently in the United States. That really isn't good for business. In 2016, the general public will see what happens from drivers saying their employees to the equal protection act-14th amendment. 

Remember this:

  • Taxis have a 24 hour customer service number
  • Taxis have apps just like ride shares
  • Taxis have 100% insurance coverage with no gaps- in a ride share your life is only worth 50K; if the accident is even covered- REMEMBER THAT!
  • Taxis don't have fine print. 
  • You can't get hacked in A#1's dispatch system-we take no Credit Card info ever
  • The taxis and private cars are permanently branded
  • Taxis have the same rate every time- no surging
  • Taxi drivers are professional drivers; they've been vetted and trained by real people- not a YouTube video.
  • Taxi drivers make their living by driving a taxi- its not their "side gig".
  • 75% of people that want to drive a taxi cannot; due to background checks and insurance requirements.
  • Taxis pay huge insurance & licensing costs yearly.