March 12, 2008

Gas prices prompt Mayor Daley to push taxi surcharge

Chicago taxicab riders would pay a temporary surcharge pegged to gasoline prices to ease the financial squeeze on struggling drivers, under an ordinance introduced by Mayor Daley at today’s City Council meeting.

After striking out three times last year in their quest for a temporary surcharge or permanent fare hike, cabbies finally hit paydirt.

After striking out three times last year in their quest for a temporary surcharge or permanent fare hike, cabbies finally hit paydirt.

Consumer Services Commissioner Norma Reyes, who slammed the door on a 24.4 percent fare increase last fall, said she has devised a Seattle-style “formula” to address the volatility of fuel prices.

Under the plan, a 50-cent surcharge would kick in whenever gas prices rise to $2.70 a gallon for seven straight days. Since prices are already well above that level, that means passengers would pay 50 cents more upon City Council approval.

The surcharge would double to $1 whenever gas prices hit $3.20 a gallon for one week straight.

The temporary surcharge would come off whenever prices fall below $2.70 a gallon for seven straight days.

With industry analysts predicting $4-a-gallon gas by the summer travel season, Reyes said it was clear cabdrivers working 12- to 16-hour days could no longer eke out a decent living.

“We’re headed toward the spring and summer season. Just yesterday, gas prices went up again. A barrel of gasoline is going for over $100. We are trying to give some relief to the taxi drivers,” Reyes said.

The commissioner was asked whether she supports a permanent fare increase for the first time since the 11.6 percent hike that took effect in 2005.

“Eventually, obviously there’s going to be a fare increase. We just have to look at it, look at what it would be and work with the industry in order to get one. But, for right now, the goal is to deal with it through a gas surcharge,” she said.

Last month, cabbies complained that City Hall was compounding their financial headaches — by tripling fines for a host of bad driving violations in response to a 58 percent surge in passenger complaints —while ignoring their surcharge demands.

Reyes categorically denied the surcharge was being introduced in response to those complaints. “We’ve been working on this for five months,” she said.

Veteran cabdriver Ken Cooper branded the mayor’s plan “too little, too late.” He noted that drivers are planning a demonstration and march City Hall for sometime next week.

“I paid $3.79 the other day. What about about when prices go above $3.80? What about $4.10? It’s going up so fast, we’re already way above what he’s offering. He’s giving us a sliding scale. The scale is already broken,” Cooper said.

“It’s like saying, `Let `em eat cake when we don’t even have bread. It reminds me of Marie Antoinette.”

Cabdriver Arnie Kast said a surcharge of at least $1.25 “should have been done a year ago.”

As for the mayor’s plan, Kast said, “It’s a joke. It’s not even an appeasement move. The price of gas right now is way over what he’s recommending. I saw a gas station at Diversey and Ashland charging $3.55 a gallon.”

Cabbie George Kasp was willing to take what he could get.

“It’s fair enough. It’s good that it’s happening,” Kasp said. “It’ll have to be enough. That’s all we’re getting.”

http://www.suntimes.com/news/transportation/838406,031308taxi.article

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April 9, 2008

Bobby Hynes :

Oh, sweetness. What is this formula madness? If they want to raise the fare, just raise it instead of applying complex surcharges that may or may not stick. We couldn't trust our cabbies in the past, and adding this complexity does not help for the passengers or the drivers.

By the way, aren't the Chicago cans the most expensive around? I know Boston is bad, but ours cannot be that much better.

Chicago Taxi Drivers petition For Fare Increase

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