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StumbleTaxicab Authority OKs credit transactions for companies
Tuesday, April 6, 2010 | 3:30 p.m.
The Nevada Taxicab Authority has authorized the city's two largest groups of taxi companies to accept credit and debit card transactions for a $3 fee, but the issue is far from over.
The five-member board voted 4-1 in a special meeting today to allow The Frias Group, which operates Ace Cab, Union Cab, A NLV Cab, Vegas-Western Cab and Virgin Valley Cab companies and the YCS group, operators of Yellow Cab, Checker Cab and Star Cab companies to accept credit and debit transactions.
But board members also agreed that the issue of credit and debit transactions would be revisited in future months because there are unanswered questions about the regulation of transaction fees.
At the heart of the issue is that some cab companies were allowed to offer credit and debit transactions as early as 2004, but the board never authorized it.
Seven other Clark County-based cab companies offer credit and debit transactions and have agreements with TaxiPass, a third-party vendor that has installed hardware and software in cabs to process transactions. With those companies, TaxiPass collects $3 per transaction and the computerized unit includes a global-position satellite system to monitor cab fleet movements as well as a video screen that can display advertisements, a new revenue stream for the cab companies.
TaxiPass was given permission to contract with cab companies without board approval by former Taxicab Authority Administrator Yvette Moore, who viewed it as an administrative decision. Current Administrator Gordon Walker feels such contracts need the board's approval and put a request from Frias on the agenda as well as consideration for setting a maximum allowable transaction charge.
At today's hearing, Frias representatives asked for permission to allow credit and debit transactions for a $3 fee. The company hasn't determined whether it would set up the transactions in-house or hire TaxiPass to do it.
Most of Frias' competitors recommended allowing the company to offer the transactions, but representatives from Bell Transportation suggested that the Taxicab Authority undertake the regulation and rule-making process that would apply to all cab companies. A representative from the YCS companies then asked to become part of the Frias request.
Although board members indicated they were uneasy about giving Frias and YCS permission to take credit transactions, knowing that the rules could change within a few months, the majority sided with approving the plan with chairwoman Stacie Michaels in opposition.
Among the unanswered questions likely to be considered when the board drafts regulations and rules:
*Does the board have the authority to regulate third-party vendors like TaxiPass since they operate independently, but their charges could be viewed as part of cab fare? Board members were split on the issue.
*Is $3 the proper fee to be charged for the service? A staff report indicated that in some cities, there's no extra fee for a credit or debit transaction and it's considered a business expense to the cab company. Board members also heard testimony that TaxiPass actually charges $3 for each $50 in fare, which means the fee could be higher on long trips, such as the drive from Las Vegas to Pahrump. Michaels pointed out that with the average fare in Clark County being $13.75, a $3 fee would amount to a more than 20 percent markup on the fare.
*How should fees be reported to the Taxicab Authority? Cab companies must report monthly revenue to the office, but some companies said they felt transaction fee revenue could be detailed in an annual report. New regulations would outline the board's preference.
*How should the consumer be notified of the fee? Board members were told information about the fee is detailed on a computer screen in the cab before the ride starts and a customer would have to "opt in" to the extra fee before the cab departed on the ride. But some board members said they thought it would be appropriate to list the fee as a sign on the exterior of the cab, just as mileage rates and other fees are disclosed.
*Should cab drivers share in the revenue generated by fees? The Industrial Technical Professional Employees union, which represents cab drivers for some Las Vegas companies, made the case that because drivers work directly with customers that they should share in any revenue generated for the cab company. There was differing testimony on how transaction fees would affect the level of tips to drivers, with the union believing it would cut into tip income and others saying tip revenue would be higher because there would be a specific line item allowing customers to add a tip on their credit or debit bill.
Companies also had various opinions on how many fare transactions would be credit and debit compared with cash.
Frias officials said they anticipated that 25 percent of their roughly 600,000 monthly trips would be paid for by credit or debit card. But Whittlesea Cab, operated by Bell Transportation, said only 12 percent to 14 percent of its transactions are credit or debit.
A-Cab owner Jay Nady said credit and debit transactions vary based on weekend and weekday traffic, but generally about 20 percent use cards. Because Nady's company is restricted from picking up passengers at McCarran International Airport and on the Las Vegas Strip, he has determined that the number of local customers who use credit and debit cards is minimal - around 5 percent of the average 40,000 monthly rides.
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Why do they even have authority over this?
Three questions:
First, why should the taxi companies require approval from the Taxicab Authority to use credit cards to collect their fares. This is totally ludicrous!
Second, the $3.00 fee is also totally ludicrous. There should be no fee. All that this is going to do is get tourists more fed up then they would normally be due to tight slots, greedy casinos, etc, thereby contributing to the further demise of tourist trade,
Third, where does this $3.00 fee go. Does it go to the Taxicab Authority? Do the taxi company's keep it? Does the taxi driver get any part of it? All just more greed.
Good points KASH , and last but not least who is stupid enough to give a cab driver thier card?
Why would anyone trust a cab driver or a cab company with access to your credit card number? They have proven again and again that they cheat customers at every opportunity they get. You might as well just get a t-shirt with your credit card number printed across the front.
I thought cabbies hated it when you paid with a credit or debit card because they couldn't under-report tips?
It is so nice to watch government try to regulate business. Why are there any controls on price. Put the fee in the window and let the customers choose. Maybe we could get some cabs that aren't beat up and some drivers that actually speak English.
This is just stupid. First off, TaxiPass sounds like a rip-off company for the cabbies. They get $3 and then have the opportunity to sell advertising on their screens? Sounds like they're USING the cabbies so their salesmen can say how many people may see one of the client's ads.
Why would The Frias Group allow their cabs to be used as a tool for TaxiPass unless they're getting a kickback of some type?
Secondly, the banks will cancel a merchant account if the merchant charges "convenience fees." Just look at the card policies on-line for MasterCard and Visa.
Third - asides from earlier posts that cabbies pocket cash, wouldn't a cabbie want criminals to know there may not be as much cash in their cab as opposed to electronic transactions?
The fee is stupid. This cost of doing business is a tax write-off. And yes - it WILL say bad things about Vegas at a time when she doesn't need it.
The Sun should take a survey on how many people take a cab?
With all of the cab and limo driver payouts in the news, who can trust the drivers??
serious; are you as stupid as your post ? if buisnesses are paying drivers, how does that make anyone not trustworthy ? that is one of the dumbest post ever. to the others with negative driver comments, kma...i have never once ripped off or long hauled a customer, even once...yes their are dishonest drivers but not all of us steal.
Visa and MasterCard do not permit any transaction surcharges on any credit transaction. It's policy, and it's part of every contract.
We fly into Vegas most years from Ireland and stay a few days before renting a vehicle to visit relatives in California and Utah. Every year cab drivers longhaul us and I have to get into confrontations. It is my pet hate of Vegas and talking to other visitors the exact same story emerges. I have phoned the Taxi Authority and when they hear you are leaving in a few days no interest shown. Some visitors simply rent a vehicle as it is cheaper but adds to the congestion. Maybe having this credit card facility would mean routes/charges could be monitored.
This year we will fly into S.L.C.and then fly down to California and possibly if we feel the need take a leisurely drive up to Vegas. I always felt that the monorail was thwarted in its route by the political power of the cab companies. After a long flight being gouged leaves a bad taste that takes a while to go away and the more I write this posting I ask myself do we really need to volunteer to be victims?
It is obvious that the Taxicab Authority is not going to stop the long haul problem. What needs to be done is for someone to allow themselves to be longhauled, and then to file a civil suit against the taxi driver. After the civil suit is resolved, then someone needs to file a class action suit against the taxi companies showing that they actually require that their drivers participate in longhauling if they are going to keep their jobs.
First off, most of these comments are ignorant bias with no knowledge of the taxi business. SOME comapnies have practices that may not be above board, most of them have changed greatly in the last 5 years or so, and are diligent on prtecting passnegers against overcharging, longhauling, theft etc. there are some great men and women out there who drive a taxi for a living. They are honest people doing a job most of you could not do. For the record i am not a driver, i am not related to a driver, nor have myself or anyone i am related to ever been a taxi driver. If you honestly believe that you have been cheated by a driver of the two comanies listed above in the article, call and report it, i guarantee, it will be investigated and resolved. Make sure you have the cab number (correct one) drivers name (correct one), drivers sex (correct one) and the exact time and date of the incident. I highlighted correct because many people just want to scam the cab companies and file complaints with false info. It happens all the time. before you get up on your soapbox about how corrupt taxi drivers and the comanies are maybe you should actually chat with one.. they really are nice folks. They get harassed, beat up, ripped off, attacked, raped, robbed at gunpoint etc....Taxi drivers have been killed by reckless drivers and passengers, they have been hospitalised, traumatized and in general given a bad rap for some. One bad apple spoiles the barrel and an entire undustry suffers.
The situation is pathetically greedy. I have a new system ready to go. It requires drivers to enter into an LLC by virtue of owning a car, period. The card involved has a flat rate transaction fee for drivers. It works out to about $1.25 per day. That's right, one dollar and twenty-five cents per day for unlimited transactions. But the drivers have to submit to forced dispatching. (Did you know that NO OTHER FLEET OPERATORS ORDER ANY DRIVER TO ANY PARTICULAR CALL?) That's why service sucks! My system changes that and lets drivers keep 60% more revenue. There's even an actual need for the Authority and they can pay for their expenses with a new source of revenue. Anyway...all this other bickering and greed will go away if the drivers get with their Union and demand this system. C'mon people, isn't it time to let technology eliminate these antiquated taxi systems run by greedy dirtballs?