A BRIEF HISTORY OF TAXICABS IN PHOENIX
ONCE UPON A TIME IN THE EARLY 1980'S, TAXICABS WERE REGULATED HERE.
DRIVERS EVEN WORKED ON COMMISSION, AND HAD EMPLOYEE BENEFITS AND A
UNION. THAT WAS BEFORE MY TIME, BUT THE OLD-TIMERS TELL ME IT WAS
GREAT
BACK THEN. THEY STAYED BUSY, AND THEY MADE MONEY.
THERE WAS A YELLOW CAB COMPANY IN PHOENIX, AND A CHECKER CAB
COMPANY
IN
MESA. AS THE STORY GOES, YELLOW WAS INEFFICIENTLY RUN BY COMPLACENT
MANAGEMENT. A MORMON NAMED ARNETT TOOK OVER CHECKER, CUT METER RATES,
AND RUTHLESSLY COMPETED WITH YELLOW UNTIL HE DROVE THEM TO BANKRUPTCY.
THEN, OF COURSE, HE BOUGHT YELLOW.
ONE MIGHT SURMISE THAT ARNETT ENGINEERED OR HEAVILY INFLUENCED
DEREGULATION SO THAT HE WOULDN'T HAVE TO DEAL WITH A UNION OR PAY
BENEFITS. THE DOWNSIDE WAS, IT OPENED UP UNLIMITED COMPETITION, BUT
WITH THE LEASE SYSTEM, THAT MOSTLY AFFECTED THE DRIVERS, NOT THE
COMPANY. IF THE DRIVERS WERE DISSATISFIED, IN A "RIGHT-TO-WORK"
STATE'S
LOW-PRICED LABOR MARKET, THEY COULD ALWAYS BE REPLACED.
A COMPANY CALLED AIR COURIER, WHICH PROBABLY EXISTED BEFORE DEREG
(B.D.?) DOING DELIVERIES AND PRESCHEDULED AIRLINE CREW TRANSPORT, WAS
YELLOW/CHECKER'S BIGGEST COMPETITOR FOR SEVERAL YEARS. THEY DID WELL
IN
THE SLIGHTLY-HIGHER END OF THE BUSINESS, PAYING OFF HOTEL BELL
CAPTAINS
AND DOING A LOT OF VOUCHER BUSINESS. THEY TRIED TO SCOOP YELLOW
CALLS,
EVEN PAINTING THEIR CARS A SLIGHTLY LIGHTER SHADE OF YELLOW SO THE
INATTENTIVE CUSTOMER MIGHT THINK IT WAS THE ONE HE CALLED.
ON THE LOWER END OF THE SPECTRUM THERE WAS ACE, STARTED BY A COUPLE
OF
EX-YELLOW OWNER OPERATORS. THEIR CABS WERE WORN, THEIR INSURANCE
COVERAGE WAS OFF AND ON, BUT THEY OFFERED LOWER RATES. ACE GREW TO A
SUBSTANTIAL SIZE, THOUGH THEY WERE OFTEN HAMPERED BY EXPENSIVE
LAWSUITS
FROM THE OCCASIONAL UNINSURED ACCIDENT.
THERE WERE SEVERAL OTHER COMPANIES AS WELL: ARIZONA TAXI, WITH AN
ARIZONA FLAG PAINTED ON ITS HOOD, AND SUNSET, WITH A VERY NICE SUNSET
PAINT JOB, BOTH TRYING MOSTLY FOR HOTEL/RESORT BUSINESS, VILLAGE CAB
OF
SCOTTSDALE, AND DOZENS OF 1 TO 4 CAR COMPANIES.
THEN COURIER (THEY DROPPED THE AIR) STARTED A SUB-COMPANY CALLLED
DISCOUNT TO COMPETE IN THE LOW-RATE BUSINESS. IT DID QUITE WELL,
EVENTUALLY SURPASSING ACE.
YELLOW AND CHECKER (SEPARATE FLEETS UNDER THE SAME OWNER), HAD THE
ADVANTAGE OF THE TWO MOST RECOGNIZED NAME BRANDS, AND THEY WERE STILL
THE ONLY COMPANY WITH EHOUGH CARS TO GIVE REASONABLY PROMPT SERVICE
THROUGHOUT THE VALLEY, WHICH COVERS A LOT OF LAND. BUSINESS WAS NOT
WHAT IT SHOULD HAVE BEEN, BUT IT STAYED STEADY ENOUGH TO GET BY.
EXCEPT DURING EXTRA-BUSY PERIODS LIKE FRIDAY AND SATURDAY EVENINGS,
COMPETITION BETWEEN YELLOW DRIVERS COULD GET INTENSE. THIS WAS MADE
WORSE BY THE DISPATCHING SYSTEM USED IN ALL BUT OUTLYING AREAS, WHICH
CALLED TWO STANDS AND "CAB AROUND". THE "C" IN "CAB AROUND" WAS THE
SIGNAL FOR ANY INTERESTED DRIVER TO QUICKLY KEY HIS MIKE AND YELL HIS
NUMBER. THE CALL WENT TO THE FIRST NUMBER THE DISPATCHER HEARD.
OTHER THAN QUICKNESS IN KEYING UP, THE SECRET TO WINNING BIDS WAS
TO
BE CLOSER
TO THE BASE ANTENNA THAN OTHER BIDDERS OR TO HAVE A MORE POWERFUL
LINEAR
AMP. STOCK RADIOS PUT OUT 25 TO 40 WATTS. LINEARS WOULD BOOST THAT
TO
80 OR 100, AND THERE WERE SOME THAT HIT 150. LINEARS WERE AGAINST THE
RULES, BUT THEIR EXISTENCE WAS WELL-KNOWN, AND AS LONG AS YOU REMOVED
IT
BEFORE A SHOP INSPECTION, NOTHING WAS DONE. THE ALTERNATIVE TO THE
LINEAR, PARKING BY THE BASE ANTENNA, WAS NOT GOOD FOR TAKING CALLS
MANY MILES AWAY. THAT INCREASED RESPONSE TIME AND MADE IT LIKELY
THAT ANOTHER DRIVER WOULD SCOOP YOUR CALL.
AFTER YEARS OF COMPETITION, ARNETT WAS ABLE TO BUY COURIER CAB.
THE
YELLOW/CHECKER/COURIER COMBINATION THEN CONTROLLED VIRTUALLY ALL OF
THE
MEDIUM TO HIGH PRICED TAXI BUSINESS. THE FORMER OWNER OF COURIER KEPT
DISCOUNT, COMBINED IT WITH A SIMILAR FLEET CALLED METRO AND
CONCENTRATED
ON THE LOW END.
THOUGH DISCOUNT/METRO HAS MORE BUSINESS THAN IT CAN HANDLE, ONE
DOES NOT
ENVY THEIR DRIVERS. THEY MAY STAY BUSIER, BUT THEY HAVE TO RUN MANY
MORE CALLS TO BOOK A GIVEN AMOUNT. THEIR RESPONSE TIME IS MUCH
LONGER,
AND CUSTOMERS WILLING TO WAIT FOR THEM ARE THOSE FOR WHOM SAVING A
COUPLE OF DOLLARS IS VERY IMPORTANT. ERGO, TIPS TEND TO BE SPARSE.
THE
INCIDENCE OF FARE WHINE, ATTEMPTED BARGAINING, RUNOUTS, AND OTHER
PROBLEMS TENDS TO BE HIGHER IN THE CHEAPER CABS.
WHEN I STARTED DRIVING YELLOW CABS IN 1983, THE METER RATE WAS
$1.20
A
MILE, AND I PAID $35 LEASE FOR A 12 HOUR, OR $50 FOR A 24.
SINCE
THEN
YELLOW HAS GONE UP TO $1.50 A MILE AND CHARGES $60 LEASE; $100 FOR A
24. AFTER ABOUT 15 YEARS WITH YELLOW, I BEGAN DRIVING FOR
TLC, THEN A RELATIVELY NEW COMPANY, WITH $1.20 PER MILE
RATES
AND LEASE $50 FOR A 12.
OF COURSE I CAN'T EXPLAIN THE ECONOMICS TO EVERYONE WHO COMPLAINS THAT
THE FARE IS TOO MUCH, OR WHO SAYS I'LL BET YOU GUYS MAKE A LOT OF
MONEY, HUH? I JUST SMILE AND THANK THEM FOR THE 20-CENT TIP.
AFTER ALL, IT'S A FRIENDLY UNIVERSE.
--captain rat