A thriving taxi industry in Jackson is facing additional costs with the rise of gas, with some cabbies calling for a rate increase to help the business survive.

The taxi industry is considered alternative transportation, but it is the first option for Adam Gilliard after his car was totaled in March.

"I am a regular customer. When I call for a cab, as soon as I tell them my address, they already know who it is," said Gilliard, 28.

It is a hassle to bother a friend or family member for a ride to work, he said.

"Over the last few months calls have steadily increased," said Bill Smith, owner of Yellow Cab Co. "A lot of times I don't have any cabs vacant on the entire lot."

Smith said some customers will wait up to 45 minutes rather than catch a bus or find other means of transportation.

The local transit system's hours and coverage area make taxis attractive to metro-area residents.

"I have more older customers that call than anything, many of whom need short-distance travel to the grocery store. Many leisure or business customers choose a taxi as well," Smith said.

But the rising gas prices are hurting the taxi business.

"Don't get me wrong. I am glad for the increase in business, but I'm actually losing money," said Smith, who said he believes taxicab rates should be raised because of the rising gas prices.

Fares start at $2 and increase $2 for each mile. Jackson regulates taxi rates.

"Communities all over America are raising rates," said Alfred LaGasse, CEO of Taxicab, Limousine and Paratransit Association, a Washington-based trade group. Communities are raising fares or adding a fuel surcharge for each trip, he said.

Jackson City Council President Leslie Burl McLemore said local taxi companies must be proactive.

"Given that over the months the price of gas has risen, I do believe that the council would be receptive about rate increases," McLemore said.

The last rate increase was in December 2005, when the council increased fares 50 cents.

There are 72 registered taxicabs in the metro area, according to the Hinds County tax collector's office.

Gas prices were $3.87 a gallon Friday, nearly a dollar more than the $2.75 a gallon a year ago.

"These fuel prices have hurt my drivers more than anything," said Smith, whose cabbies must pay more out of pocket for gas.

LaGasse said cab drivers work as independent contractors and are responsible for their expenses.

"A normal cab driver is buying a tank of gas a day," he said.

"So you can see the pressure."

McLemore said the taxicab community had been suffering but has seen a lot more business in recent months.

Lee Bennett, manager of Veterans Cab Co., said raising taxi fares may not be the answer,

"My fear is by raising rates we will run customers away," said Bennett, who said he needs two more drivers.

"I am happy that business is slightly up. Whether it's due to gas or the economy, I don't tend to ask my customers. I just try and get them where need to be," said Bennett.

The taxi community has been disjointed since the death last year of Jack Stewart, former owner of Veterans Cab, Smith said.

"We lost the voice of the taxi drivers," he said.

"I know for a fact it has been over two or three years since we actually had any talks with the city," Smith said.

McLemore said there is a transportation board that was established years ago that comes before the council as well as a transportation service committee.

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