The Evolution of Taxi Meters and Taxi Cab Apps

According to Travis Kalanick, traditional taxi companies are a dying breed that needs to be put out of business. Certainty, every industry has its share of problems; I say that the taxi business is strong. According to a report published by the bureau of labor statistics, 239,000 men and women are taxi drivers. Projected growth for the industry is 20% per year.(1).

Naysayers like Mr. Kalnick seem to have no understanding for the true problems of the industry which are the working conditions and treatment of drivers. Often called the most dangerous job in America, the average taxi driver earns a paltry sum of $22,440 per year.
 

The issues of service related problems will continue to plague the taxi industry until the working conditions and rates of pay for drivers are adjusted to a standard that is fair to all. Exploitation of drivers by companies they  work for continues to undermine the morale of the average taxi driver. In this environment, service complaints will continue to be the Achilles' heel of the industry.

Nevertheless, service issues still plague the industry. Leave it to good old capitalism to find a solution to the problem. Uber and other companies have jumped into the taxi app business seeking to exploit customer dissatisfaction with the industries current business model.

Flat rate charges seek to undermine the concept of a metered taxi fare. In fact, the idea of car with no taxi meters and taxi apps have put some unanswered questions in the minds of drivers and fleet owners. So where is the taxi industry going? Are metered fares a thing of the past?  Is the taxi meter a relic of the past destine to die from improvements in technology? Is the taxi industry dying a slow death?

There are literally thousands of companies that would suffer irreparable harm if Kalnick's vision became a reality.

Wilhelm Bruhn' Taxi Meter Inventor

Wilhelm Bruhn's taxi meter invention gave birth to the industry. Centrodyne is the largest taxi meter manufacturer in the US and Canada. Their very first electronic taxi meter the Silent 500 series revolutionized meter manufacturing, setting the standard of quality for the industry.

I had the opportunity to put forth these questions to Byron Corcoran

the General Manager of Centrodyne Inc.

 Good day to you Byron

You've have had a great career with Centrodyne corporation. What do you think has made Centrodyne an industry leader in the taxi meter manufacturing industry?

I believe it comes down to the quality of our product and the the technological advancements they offer to our customers.

According to Travis Kalanick the CEO of Uber, the taxi industry is a broken wheel that needs to replaced with something better. He wants to put the taxi companies out of business. What is your response to this since if he had his way, this would directly affect your companies business model.

I would say like in most industries there is room for improvement but the taxi industry is not broken. His statement seems to be a little self serving in trying to launch their service. Naturally, if our clients business contracts, we would also loose market share. Our industry is regulated and the industry players follow those regulations. The reason for these regulations are for the consumer's safety, privacy, and accountability to each customers, Our industry, is required to serve 100% of the riding public. That is not what these "rogue apps" are doing. They only serve a small market segment that targets the quick make a buck mentality and they don't follow the rules when they do.

There have been some fundamental changes within the industry brought about by the development of taxi cab apps and the entrance of Uber and Hallo into the transportation market. Will people still want to ride in a vehicle without a meter to document their fare?

I'm obviously biased but yes I believe people will want a taximeter. One of the reasons there are taximeters today is so that the riding public can have confidence that the amount they are being charged is accurate and fare. There are federal weights and measures specifications and tolerance requirements for charging the public whether it be with fuel pumps, scales, taximeters, etc. Devices such as the taximeter ensure an accurate calculation of the amount charged. Apps used on smart phones, tablets, etc. do calculate the fares but do not meet the federally mandated specifications and tolerances for weights and measures. These devices when used on a android phone or Apple i Pad have no provision for fare calculation when the GPS signal it's using is lost or not available.

Will there be a taxi cab industry in the next 10 years?

Yes.There will be changes made to the industry and perhaps to taximeters but I believe the core industry will still be there.

What is the most significant issue facing the taxi industry ?

he most significant issue facing the taxi industry are "rogue taxi apps". How our industry, regulators and politicians react and adapt to these apps will prove crucial. It may mean the taxi industry will need to be allowed more flexibility and, some of that flexibility may be in the taximeter.

The first Taxi meter made by Centrodyne was the 500 series. Then when the 600 series came out it was a huge success . I understand that there were 93,000 produced. Why did the company make the decision to stop manufacturing the 600 series meter?

Our first taximeter was the Silent 500, followed by the Silent 550, Silent 610, Silent 620 and now the S700 taximeter. The S600 series was first introduced in 1993, we continue to manufacture it today, and will for a few more years. The two most significant reasons for moving to a new meter are changes in technology and changes in the taximeter features.

           

Centrodyne S700 Taximeter

The 700 series replaced the 610. What makes it a better meter?

The new design of the S700  taxi meter  is better situated for changing requirements to taximeters. A few examples are smaller size, lightweight, standard SMART communications, printer ready, 16 rates standard, Flat Rates, Touring Rates, Negotiated Rates, stores last 250+ trips, APP for downloading meter data, website for programming and firmware updates, and more.

         Does Centrodyne have any new taxi meters in development that you can share

         with our readers?

A printer specifically designed for the Centrodyne S700 will be available next year and the design concept for the next new generation taximeter has already begun..

           Byron, I want to thank you today for sharing your insights into the taxi industry.                  

         Your welcome Atlanta Airport Guy

Technological innovation of smart phones and the use of taxi apps by “rogue outfits" will continue to divide the industry unless the industry itself embraces and accepts change. Relying on politicians to consider the legal questions of what's good for American business is a misnomer of the function of government. Taxi companies need to fight back against the naysayers and incorporate the very technology that  their adversaries  are trying to use  to destroy their everyday business operations.       

(1) http://www.statisticbrain.com/taxi-cab-statistics/ accessed 11/27/`13

          

Taxi Apps- The Good ,The Bad, and The Ugly

                                 

Uber and Hailo exploit traditional Taxi service Customer Dissatisfaction with Taxi Apps

Smart phone and taxi apps has made it possible for people in cities such as Atlanta, New York, Chicago, Boston and San Francisco to hail a taxi or request black car service at the touch of a button. Customers can see the exact location of their dispatched taxi or black car in real-time. Black car service drivers greet their customer with a smile;they offer bottled water and are well-groomed. Their cars are clean. Traditionally, Prior to smart phone app companies entering the market, Taxi and black car services were segregated markets. The difference between these services is the price you'll pay. I have been driver and fleet owner for over ten years. I would hear my customers say taking a taxi was at best a crap shoot. People will pay 15-20% more for better services especially if they know their livelihood depended on being in a specific place,at a specific time.

A lack of discipline and poor job performance in the taxi industry has created a market opportunity for Uber and Hailo.

The average driver typically works 12-14 hours per day, seven-day per week. Their compensation for an eight four-hour work week is about $28,000 per year if they rent a car from a company. In addition to the low pay versus the hours worked per week, taxi drivers work in all kinds of inclement weather and are subject to being robbed or severely injured if they have an auto accident. Now you may have some understanding of why drivers may not greet every passenger with a smile. However this is no excuse for poor customer service but the working conditions and lack of discipline of drivers by taxi companies have given the taxi industry a less that sterling reputation with the public in cities across America. The industries customer dissatisfaction with service has opened a door of opportunity for entrepreneurial based taxi and limo app companies such as Uber and Hailo

Uber and Hailo are benefiting from near almost perfect market conditions. More than 60% of Americans have smart phones enabled with GPS and can facilitate processing a credit card transaction. Fewer young people are getting driver's licenses. Climate-change environmentalists are discouraging private ownership of cars. Taxi services have developed a tarnished reputation in many places. At its worst, the cabbie stereotype is an image of a sloppy dressed man in a sooty car who constantly talks on the phone while drivings , demands cash payment and takes you the long way to raise your fare. According to Kathy Steinmetz, there were approximately 8,000 complaints made to New York City's taxi and limousine commission from May2013 this year, more than 60% involve driver behavior, including being discourteous to customers, and refusing to accept or process a credit card. That's in addition to the 20% of complaints that were filed about unsafe driving.

Taxi Apps such a Uber and Hailo seem to be a good idea but exploit the driver and customer.

When you use Uber in Boston here is a breakdown of the taxi fees and distribution to the driver:

$13.00 is charged to clients credit card(Uber automatically calculates this:$10 fare* 20% gratuity *$1 taxi fee)

• Driver Makes $10 (the entire Fare)
• Driver takes 10% of fare for tip( $1.00)
• Uber takes 10% of the fare as a fee ($1.00) &pays credit card processing at 2%
• Uber makes Taxi Fee of ($1.00)

App based companies skim part of the driver's tip to pay for marketing and credit card processing, which they either do in-house or have an affiliate company do at less than 2% per transaction. In this example , the transaction structured at this rate gives the company is 15 % of the gross revenue.

It's the driver that makes the company what it is in terms of its business reputation in the community and that's why taxi apps are a good idea. Tap Your Taxi is once such app that can complement a cab companies current business model.

Tap you taxi is an app for the taxi industry like no other. Tap Your Taxi entered the Atlanta market just one year ago. Drivers love it. It easy for customers to use and they don't share their credit card or personal information with anybody except the driver.. Each driver is a licensed taxi driver in the city you request service.

History of the Tap Your Taxi App and its Development

The concept of this app came from two brothers,Eddie and Jimmy Grose. They grew up in a family owned taxi business in Atlanta and this was the inspiration for the development of their taxi app. Both brother agree it's the driver that makes the company and this app helps drivers earn extra fares using GPS smart phone technology. It doesn't threaten any established taxi companies business model and it is very affordable. In fact for customers its free and for driver they pay a nominal yearly subscription fee.

Uber and Hailo collect your personal information from their taxi and black car apps

The buzz word is data mining. However its no secret that both companies harvest your personal information I believe it is beyond the necessary information required to process a ride request. Each company has a web based privacy policy. On Hailo's privacy policy  it clearly says “we provide you with marketing communications about our products and services and those of third parties which we think may be of interest to you”. Uber privacy policy has similar wording in their privacy policy statement. Do you need someone collecting data about you and then reselling it to marketing firms? They send you information about a third parties products free of charge to you. However, the business they are promoting is paying a fee. Who know better what your interest are than you?

In contrast to Uber and Hailo's Apps, Tap Your Taxi's  privacy  policy  is  easy to read.. The company doesn’t send offers of interest to you from third parties. All of the drivers are professional and none of your credit card or personal information is stored, repackaged or shared with anyone.

Taxi apps that don't share customer's information and doesn't take 15% of a drivers gross wages is definitely a good idea. If your looking for a taxi app that treats a driver fairly and doesn't share your credit card or personal information, Tap Your Taxi is the right App for you. Mover over Uber and Hailo. Tap You Taxi races to the front of the crowded taxi app market with first class technology and respect for customer privacy. Get your free download on CNET today! You may also download the app from our taxi supply website. Have a look today

History of The Taxi Industry

The  Worlds first Professional Taxi Company

The world's 1st taxi cab was manufactured by Gottlieb Daimler in 1897 The taxi came equipped with the newly invented taxi meter developed by Friedrich Wilhelm Gustav Bruhn. On June 16th 1897, Mr Daimler delivered to a Stuttgar entrepreneur Friedrich Greiner his Damiler Victoria cabs fitted with taxi meters. Mr Greiner became the first person to create the world's first motorized taxi company.


The Birth of the Taxi Industry in the US
Harry Nathaniel Allen, the owner of the New York Taxicab Co. imported the very first 600 gas-powered taxicabs in New York city from France. Harry Allen's gas-powered taxi cabs began operating in New york city in 1907. He had his cabs painted yellow after learning that this is easiest color to see from a distance. This color became the standard color for many large taxi fleet owners in the industry.
Taxi cabs had grown popular throughout the world during the early Twentieth century. The 1st major innovation for the Taxi industry after the taxi meter occurred in the late Nineteen forties, when 2-way radios very first used in taxi cabs.Radios allowed cabs and dispatching locations to speak to one another in the car and better serve customers more effectively as opposed to old methods, for example utilizing call-boxes. The next major advancement took place the Nineteen-eighties, when computer system assisted dispatching was initially introduced.


The Taximeter
The name taxi cab was in fact derived from the phrase taxi meter The Taxi meter is a device which calculates the distance and time an automobile moves, and makes it possible for a precise fare calculations. Wilhelm Bruhn invented the Taxi meter in eighteen-ninety-one.Taxi meters had been initially mechanized devices mounted outside of the taxi cab, over the driver's side front wheel. Taxi meters were in the near future transferred to the inside of the taxi cab. In the 1980s Centrodyne and Pulsar developed and  an electronic Taxi meter.


Taxi Cabs
In 1907, Taxi cabs were hardly as comfortable as modern cars are today due to their Narrow tires and poor suspension design. In the US, in the Nineteen thirties, typically taxi cabs were usually a Desoto and Packard. General Motors temporarily provided a special car referred to as the General.
In 1922, the check motor company began production of the Checker passenger car almost exclusively for the taxi industry. However do to tough economic times, checker stopped production of cars in the 1980s. Another contributing factor to checkers decline in market share was the changes to New York cities taxi ordinances. These changes required taxi fleet operators to have long wheel base vehicles such as the Crown Victoria made by Ford Motor company or the Sienna minivan made by Toyota.


The Future of Taxi Industry
The future for small independent taxi operators is bleak. The cost of buying a taxi in 2013 is somewhere between $3,000 and 18,000 dollars plus the cost of outfitting the vehicle with the proper taxi supplies. . If you add in the cost of expensive insurance,repairs plus fuel,only the large fleet owners will be able to handle those low profit margins due to the sheer number of cabs they have on the street. So do you still want be a Cabbie?

Lean more about how to save money on Taxi Supplies and Taxi Meters.  Be sure to read my future articles how how to lower costs and increase your companies ROI.