Who Really Owns AAA and Yellow?

In 2003, according to reports, Yellow, Checker and Courier, formerly owned by Arnett, were purchased by AAA Full Transportation, an Arab-owned taxi company that had previously concentrated mostly on servicing corporate accounts in plain white taxis. It was somewhat surprising, although Arnett himself was aging, his son of doubtful competence, and the company likely in financial trouble due to multiple lawsuits. A major lawsuit over the workman's compensation issue had finally been whon on appeal, since in fact drivers are independent contractors, not employees, but the years of litigation was no doubt draining.

Information available at that time said that Arnett retained his Dial-a-Ride and contracted medical transportation operations at 129 E. Pima, which was the back-door address for 156 E. Mojave. The purchased companies moved to AAA's University Ave. headquarters. Later AAA bought Neal's Cabs of Mesa and TLC of Glendale.

Recently the actual ownership has been questioned, however. Could AAA have actually been secretly owned by Arnett all along, and the sale have been a ruse to avoid large debts owed by his original companies? Specific information is hard to come by.
--captain rat 9/15/2007

Just as small taxi companies and owner-ops were preparing for the worst, which was scheduled to begin July 1, 2004, it seems the AZ Legislature is amending the law, possibly softening the blow a bit.
(1) Insurance requirements will stay at $300,000 for vehicles holding 8 passengers or fewer.
(2) A classification called Livery Vehicle has been added, differing from a taxi in that fares are NOT determined by distance; thus, it does not require a meter. It will have its own livery type plate, and removable signs may be used. Fares may be determined by
flat rates, hourly rates, or geographic zones.
(3) Exterior taxi signs will no longer require the address of the company.
(4) NEW EFFECTIVE DATE: 12/31/2004
UPDATE: THE NEW RULES FOR TAXIS STILL BEGAN JULY 1, BUT NEW LIVERY RULES DON'T START UNTIL 12/31.

CINCINATTI CABDRIVER PICKS UP LION

Mark Kronner, a taxi owner-operator in Cincinatti for 19 years, picked up a passenger with an unusual pet. He describes the incident as follows:
I picked up a fare from our office in Cincinnati, Ohio who had a two year old male lion on a leash. We drove to the destination with this lion hanging his head out the window like a dog. I challenge any cabbie to match this. Good luck.

ARIZONA! Let's Join the 21st Century!

And then invite everyone over

Arizona politicians really should try to stop shooting themselves in the foot. We have a state full of natural beauty, great winter weather, excellent resorts, hotels, golf courses, and, thanks to the enterprise of Native American tribes, we even have gambling. yet we are losing convention and tourism business to Nevada and other places.

Although the people of Arizona are as sophisticated and cosmopolitan as any, we have developed a reputation as regressive, restrictive, and prudish; a state to avoid if you want to have fun. It is our so-called LEADERS (actually they are about a century behind us) who make us appear dull and reactionary.

Still, it is our own fault. Instead of speaking up and demanding progress, we remain silent while the ultraconservatives and religious fanatics make all the noise.

Evan Meecham, for example, made the entire state appear both racist and stupid. Fortunately he was removed from office before the impression could become permanant. However, we still have politicians who make such bigoted and pointless proposals as a constitutional ammendment banning gay marriage. Perhaps if gays were not allowed to marry, more of them would become priests instead.

Seriously, the effect of such public statements will be to alienate a significant proportion of the population, causing many of them to choose other states for vacations or business conventions.
I believe that treating everyone as equal is the right thing to do. But regardless of beliefs, it is a fact that it also makes good business sense.

One of Arizona's major handicaps is our set of archaic liquor laws. Our 1:00 am end to alcohol sales amazes and frustrates most visitors from elsewhere. Those here for conventions and business meetings are especially disappointed. The night life is an important part of a visitor's experience. Vacationers, by definition, have time off from work, and many of them want to have a good time. But Arizona only offers them half a night to enjoy.

Early bar closing does not make people drink less. It only insures that nearly all of them will be leaving the bar at about the same time. Many will hurry to finish a last drink before they go. Of those who call a taxi, some may have to wait awhile during 'bar rush, when a large number want service at the same time. A later last call would help reduce the hurried drinking. Bars should be encouraged to stay open at least an hour after last call, giving people time to wait for a ride and/or leave without a rush.

There is now an initiative being started to extend last call. Check out the link below for petition information.

THE LAST CALL ACT OF 2004

Finally, it should go without saying that banning smoking in bars and restaurants is senseless and mean-spirited. Arizona should stand for individual liberty, not paternalistic prohibition. Let's make this state one we can be proud of; progressive, free, and economically strong!

AZ Legislature Blunders in Taxi Regulation

Currently, taxicabs are permitted to charge by odometer; however, several factors can influence odometer accuracy including tire inflation, tire size, and the accuracy of the odometer. If a smaller tire is used or the tire is under-inflated after the annual inspection, the taxicab company will be overcharging its customer. The DWM recommends that taxicabs, as defined in ARS 41-2092G; licensing fees; definitions, be required to have and use a certified taximeter for computing taxicab fare.

This statement is so absurd that even someone unfamiliar with taxicabs should see the flaw in the argument.

HOW DO YOU THINK A TAXIMETER MEASURES DISTANCE?

It is, of course, connected to the same cable, either electrically or mechanically, that turns the odometer and the speedometer. It is subject to exactly the same causes of inaccuracy as the odometer, including tire size and inflation. Unless it is being suggested that meters use a global-positioning system device to measure distance, (this is being developed but is not yet in production), then we must still count miles by the turning of the wheels on the road.

If a taxi owner or driver wants to cheat his customer, having a meter is to his advantage. The meter LOOKS more official and authoritative, and is less likely to be questioned.

Adding the factor of traffic delay time can effectively mask a distance inaccuracy. In addition, adjusting the minimum speed used to determine traffic delay time can increase the total fare considerably, yet this setting is not a required part of the rate-posting.

Requiring meters does nothing to insure the honesty of a taxicab or sedan. It only increases the operating cost, which will result in higher fare rates for the customer. The margin of profit for a small company or an independant owner-driver is already quite slim.

The meter requirement will only help the large taxi companies who already use meters, by reducing the competition from small companies and independants.

TLC Transportation, a small sedan transportation service located in Glendale, came to an untimely end on October 7, 2003.

To its drivers and its customers, TLC had been more than just job or a ride: it was like a family and a friend you could count on.

At the end of the day, on 10-7-2003, that family dissolved, sadly, each of us feeling a profound sense of loss.

Although AAA Cab has purchased TLC's phone numbers and name, and will use some of TLC's former drivers, it will not be the same.

Customers of TLC tended to be very loyal.  Dispatchers and phone operators often knew them by their voices or recognized their names immediately.  There was no caller-id on the phone--it was human-ID.  

Although TLC had its ups and downs over the years and no doubt struggled to make a profit, especially during this Republican recession, the reasons given for the close were not financial, but that two tragic deaths had occured in the owner's family, back in Ohio. Laura, the owner, was needed back there, and could no longer run the company here.

UPDATE:

Now that TLC is no more (the AAA simulation only uses the name and the phone numbers), I have heard from individuals who were formerly with the company, who have provided some information, which I am piecing together in an attempt to tell a more complete story.

DECEIT IN THE DESERT

THREE RUTHLESS CONSPIRATORS PLOT TO RUIN THE SMALL TAXI COMPANY THAT EMPLOYED THEM

The taxi business is not an easy one,. even in the best of times. You depend on a combination of factors, none of which are predictable. the independant-contractor drivers, the many moving parts of the cabs, the capriciousness of the customers, the whims of the weather, the flow of traffic, and the constantly changing level of demand., each of which may demonstrate its adherence to Murphy's law.

But when your business partners. who pretended to be your friends as well, sneak off into the night to surreptitiously sell out to a larger company, stealing your hard-won accounts and many of your drivers by spreading vicious lies, even stealing your office rolidex., fraudulently having not only your office phones turned off., but your homephone as well, then things can get pretty tough.

Ruthless tactics in business are nothing new. Neither are murder, robbery,and rape. No one is surprised at the daily news reports. complete with victim interviews. statistics.and damage estimates..
As a whole,. we take these acts for granted, hoping that the bad actors involved are not in the majority

When such things occur right in front of us, however, we feel the full impact of the difference between decent human beings and the predatory pseudo-humans who act without conscience.

I dispatched for the EAGLE LIVERY, the company to which this happened.

continued [1]

LEGACY REINCARNATED

can it escape its karma?

Legacy, begun as a rip-off of Eagle (see DECEIT IN THE DESERT), is no longer a part of Yellow's Arnett Transportation. A former Eagle driver, Tone (pronounced TONY), had been driving independantly and quietly acquiring a fleet of Towncars, which he leased to drivers.

Tired of seeing Arnett/Legacy rip off drivers and mismanage the company, Tony bought Legacy.

Then, he did a very wise thing: he hired me.

continued [2]

THE CURSE OF LEGACY

PERHAPS AN ENTERPRISE THAT IS CONCEIVED IN EVIL RETAINS ITS BAD KARMA, DESPITE A NEW OWNER'S GOOD INTENT.

The evil Don, who is now dead, missed by no one who ever worked with him, and the thieving con-man Jed, started Legacy by ripping off Eagle Livery.

Tone' Hermiz, who drove a sedan with Eagle, and who had been building a fleet of towncars to lease to drivers, bought the company from Arnett Transportation, owner of Yellow, Checker, and Courier Cabs of Phoenix and Tucson. There were high hopes of turning it into a first-class Sedan company, and, in fact, much progress was being made.

Beijing, CHINA

92,000 TAXICABS?

Three thousand taxis with special head lamps marking quality services have taken to the streets of Beijing. The taxis belong to five taxi companies including Capital Taxi Company and Beijing Taxi Company, which have promised that their drivers will not refuse to take passengers, nor overcharge.

Currently, Beijing has 1,008 taxi companies with 67,000 cars and over 90,000 drivers. Taxis shoulder 12 percent of Beijing's transportation volume.

continued [5]

THE TOWNCARJACKING

TAXI TERROR, DESTRUCTION, AND ROMANCE ON THE STREETS OF PHOENIX

DECEMBER 3, 1999
It was around 3:00 am, a chilly Thursday night in Phoenix. Business was slow. Suddenly a story began to unfold on the scanner: a white Lincoln Towncar with a blue interior and a portable lighted taxi tophat on the dash had been taken at gunpoint!
A shot was fired through the windshield, and the driver and two female passengers bailed out. The taxijacker took off with the towncar.
Cops and the 'copter sped to the scene, near 23 Ave. and Butler. The driver had walked to a nearby building to make the ymessenger call, since his cellphone was still in the& missing cab.

continued [4]

taxijack update:

august 23, 2000

Today your rodent reporter learned that the driver whose Lincoln was towncarjacked
was none other than Driver 96, one well known to me. He was a driver for Eagle while I dispatched there for 7 months, and he is now a fellow dispatcher for Tony's Legacy Transportation, as well as a part-time driver.

He began telling the story as we sat in the dispatch office, and I suddenly realized that it was the same story I reported months ago.

That gunshot that broke the windshield, I learned today, barely missed the side of the driver's head, coming close enough to shave a swath of his hair.

SEDANS

THE DIFFERENCE BETWEEN A SEDAN AND A TAXI IS TECHNICALLY ONLY THAT A TAXI CAN BE FLAGGED (WILL STOP FOR SOMEONE WAVING FROM THE CURB). A SEDAN IS SUPPOSED TO BE EXCLUSIVELY ORDERED OR RESERVED IN ADVANCE.

THE CITY OF PHOENIX STILL RETAINS AN ORDINANCE REQUIRING THAT ACCURATE RATES BE POSTED ON THE SIDE OF THE VEHICLE. THEIR LAW DEFINES A NON-TAXI HIRED TRANSPORTATION VEHICLE AS A 'LIMOUSINE'. IT DOES NOT SPECIFY THE STYLE OR SIZE CAR IT MUST BE. 'LIMOUSINES' ARE NOT REQUIRED TO POST RATES OR DISPLAY ANY KIND OF SIGN.

THIS USUALLY RESULTS IN A QUALITATIVE DIFFERENCE AS WELL.WHILE THE TAXI IS USUALLY PAINTED AN IDENTIFYING COLOR OR DESIGN, SEDANS RETAIN THEIR FACTORY PAINT, MAY BE UNMARKED OR IDENTIFIED WITH MORE SEDATE LOGOS OR SIGNS. MOST SEDANS DON'T USE METERS, RELYING ON THE ODOMETER OR PRECALCULATED FLAT RATES.

MANY SEDAN COMPANIES USE LINCOLN TOWNCARS OR OTHER LUXURY VEHICLES, AND CHARGE RATES OF $2.00 A MILE AND UP.

THOUGH PRICED HIGHER PER MILE, THERE IS NO TRAFFIC DELAY CHARGE,SO ON MANY TRIPS THE END COST WILL BE LITTLE MORE THAN A METERED TAXI WITH A LOWER RATE.

SUCH SEDANS APPEAL TO CUSTOMERS DESIRING MORE PERSONALIZED AND HIGHER QUALITY SERVICE, AS WELL AS THE MORE LUXURIOUS CARS.

SEDANS NEED NOT BE LARGE LUXURY CARS, HOWEVER. TLC, FOR EXAMPLE, USES MOSTLY COMPACT ECONOMY CARS WHICH, THOUGH SMALLER, ARE FAIRLY NEW, CLEAN, AND PLEASANT TO RIDE IN.

THIS ALLOWS THEM TO KEEP LOWER RATES, WHILE EMPHASIZING COURTEOUS AND FRIENDLY SERVICE.

THE PHOENIX AREA MARKET IS SATURATED WITH LOW AND MEDIUM PRICED TAXICABS. SINCE DEREGULATION IT HAS BECOME INCREASINGLY HARDER TO MAKE DECENT MONEY IN A REGULAR CAB. LEASE RATES HAVE DOUBLED IN THE LAST 15 YEARS, WHILE FARE RATES ROSE ONLY 25% OR LESS.

DRIVERS OF HIGHER PRICED SEDANS MAY HAVE FEWER CALLS PER HOUR, BUT THEY AVERAGE MORE MONEY PER CALL, AND THE TIPS ARE BETTER. THE DISADVANTAGE WITH LUXURY SERVICES IS THE DRESS CODE.

THE TOWNCAR SEDAN COMPANIES GET MOST OF THEIR BUSINESS BY OBTAINING CONTRACTS AT SOME OF THE MEDIUM TO HIGHER-PRICED HOTELS. IT IS AN ORGANIZED FORM OF BRIBING THE BELLHOP. THEY ALSO CONTRACT WITH CORPORATE OFFICES TO TRANSPORT THEIR FREQUENT-TRAVELING EXECUTIVES. THE LUXURY CARS ATTRACT SOME RESIDENTIAL CUSTOMERS AS WELL, MOSTLY IN THE HIGHER INCOME NEIGHBORHOODS.

WONDER WHERE THE YELLOW WENT?

squeaky wheels at the oily canary

YELLOW, CHECKER, AND COURIER drivers, all part of Arnett Transportation, the biggest in the Phoenix area, are concerned about their dispatching system. some time ago the company installed MDT's, presumably to increase dispatching efficiency. But Yellow, which once had the quickest average response time in the Valley, has gotten slower. Drivers are getting cancellations on calls that were not cancelled. Two or more cabs are getting dispatched to the same call. Business is way down.

Obviously, computerized dispatching solves no problems when run by underpaid, undercompetent, undertrained, and undermotivated dispatchers and phone operators. in fact, it only serves to make errors and dishonesty harder to trace.

ARNETT TRANSPORTATION, owner of YELLOW, CHECKER, AND COURIER cab companies, may be in LEGAL TROUBLE for systematically overcharging its voucher account clients. It may be in more trouble for attempting to keep checks that were
mistakenly sent to its address, but were not meant for Arnett.
 

--captainrat

November, 2002

Overnight, the balance of power in Phoenix taxicabs has changed drastically.

Until now, it was The Big Three:

Arnett Transportation: Yellow Cab and Checker ($1.50/mile), Courier $1.60/mile and Courier VIP towncars ($2.00/mile) All use MDT's for dispatching. Arnett's fleet of white cars uses hourly-paid drivers and runs most of the voucher calls. The regular cab drivers will end up with some of the twinkie vouchers, though. Arnett also owns Yellow of Tucson.

Discount ($1.40/mile), which probably has the highest call volume, if not the largest fleet, has absorbed several other budget-oriented companies including Metro, Fairway, and recently Ace. They use a grid of numbered zones to log via radio and send out the calls by alphanumeric pager. Their system is efficient, but not very customer-friendly. Calls over 40 minutes old without a callback are automatically discarded by the computer system.

AAA ($1.30) does a major portion of its business in vouchers. The company pays for exclusive right to flags at the Greyhound, and its drivers will try to intimidate other companies' drivers who have calls there.

NOW IT'S THE BIG TWO!

AAA was easy to underestimate as a company. Though numerous, their cabs are plain, white, and rather ugly. Apparantly, however, it has amassed enough of a fortune for its Arab owner to enable him to pay a reported $6 million for Arnett's entire operation.

Greater Phoenix also has a long list of smaller companies.

TLC, concentrationg on the west side of the valley, has switched to late-model compacts and eliminated meters. They use even-dollar flat rates based on $1.20/mile, with a $5.00 minimum. They emphasize friendly and individualized customer service, and are relatively driver-friendly as well. Dispatch is by logging zones, with flexible routing when busy. Addresses are sent by alphanumeric pager most of the time.

Several Spanish-speaking cab companies have sprouted over the last few years. They seem to be quite popular among those who prefer that language.
Years ago, Arnett began a sub-company called Fiesta, painted bright orange, aimed at that market. It still advertises in the Yellow Pages, but it consists, at last count, of one cab.

On the high end of the scale, there are several sedan companies, using Lincoln Towncars and an occasional Caddy. One company uses Mercedes. Transtyle and Altrans are the largest, but there are many smaller companies such as Legacy, Star Night, Desert Knight, Execucar (owned by Supershuttle) Rates are generally $2.00 or $2.50/mile. Although sedan companies do have regular residential customers, most depend on having exclusive contracts with hotels (an organized form of bellhop-bribery) for the bulk of their business.

Fear of flying since 9/11 has hurt the hotels and towncar-taxi business badly. Prior to that, Lincoln fleets and their drivers did quite well during the winter travel seasons.
Nearly all cab driving in Phoenix is on an independant-contractor basis. This means that a driver is not an employee. The cab is leased for around $60 to $80 for a 12-hour or $100 to $120 for a 24. You replace the gas you use. The rest is yours. If any. With practice, you usually come out ahead.

Independant-minded entrepenuers can join the countless one-car owner-operators who prowl the streets with a cellphone. Anyone with the right toys can play, though not all will win.

DRIVER DEPOSITS

will you ever get them back? a common cab-company scam

As an independant contracting cab driver, you have little or no real protectionfrom an unscrupulous cab company, unless you can afford a good lawyer and have plenty of time.

A good example is the driver deposit. The rationale for the deposit,which is usually collected as an extra $5 per shift, is that it will cover the deductible in case of an at-fault accident, the unpaid lease if you quit without paying at the end of your shift, or the cost of a missing radio or meter.

Barring such reasons for forfeiture, you are told that you get the deposit back whenyou leave.

That doesn't sound so bad; if you're careful, you should have $500 to $1500 when you change companies or occupation. In many cases, however,you'll never get it.

The problem is that the company keeps the records, and the company is always 'right'.
They have many tricks up their corporate sleeves. For example:

(1) If you and another driver share a 24-hour cab, and he has an at-fault accident, and there is not enough in his deposit to cover the deductible, they'll take yours, too.

(2) If your cab is damaged by an uninsured or underinsured driver, or by a hit and run driver, you lose.

(3) If an accident results in an estimate of $1000, but the company, with its ample
supply of spare parts, fixes it for $100, you still lose $1000

(4) If an accident is not your fault, but the company and/or its insurance companychooses not to pursue the claim, you lose.

These are but a few examples, which don't include simple 'accounting errors'. If you give a company control of your money, don't be surprised if they keep it.

Perhaps a better way would be for the driver to obtain a 'performance' bond for a given amount when starting to drive. This is like an insurance policy for the set amount of the cab company's deposit. Of course there is a premium to pay, but that would be far less than $5.00 per shift, and to collect from the bonding company, the cab company would have to justify its claim. Since the driver would be fully covered from day one, the company shouldn't object.
The deposit system enables cab companies to obtain interest-free loans from each driver.
Even if they are paid back when the driver leaves, the company had free use of the capital.
Most companies won't voluntarily give that up. To change it we'll need either a law or a strong drivers' organization.

AIRPORT STRIKE

YELLOW AND COURIER, were two of the three companies previously allowed to pick up at the airport by contract with the greedy Sky Harbor ground transportation officials. In the middle of the always-slow summer season, Arnett raised the drivers' lease. In response, Yellow and Courier drivers went as a group to Sky Harbor, parked and refused
to pick up anyone. RIGHT ON, DRIVERS! It may not have helped, but was a step toward getting organizedand getting heard.

Of course, some attention should be focused on Sky Harbor as well. While everywhere else
taxis are unregulated except for state meter inspections, airport officials presume to dictate who can pick up there, charging over $800 per year per cab for permits, plus $1 per trip out,and high fines ($100 or so) for any driver caught picking up without a current sticker. Drivers have even been ticketed for looking like they were thinking about picking up there.
Customers should have the right to be picked up by whatever company they choose
wherever they are, and no one, especially a public municipal facility, should restrain the right of a business to serve its customers.

YELLOW AND COURIER OFF AIRPORT

DISCOUNT, with new fleet of specially marked cars, is now on.

ALLSTATE, a cab company of unknown origin, emerged as the new third company allowed on the airport, along with Discount and AAA. There were rumors that Arnett created the company in Phoenix by importing it from Tuscon, where he also owns the local Yellow Cab company. There is no evidence of that, however. Allstate is part of a copmany called Arizona Pony Express, which seems to be a courier service. Though Allstate's airport fleet may do well, its street fleet inexplicably has a meter rate of $1.75 a mile, 25 cents more than the Big Two's rates. Not surprisingly, it has virtually no business through phone calls, so drivers must rely on flags and personals.