In-car screen network prompts driver dissatisfaction.
August 27, 2007 by James Bickers — Editor, Networld Alliance
A large number of New York City taxi drivers are upset about a technology upgrade that is currently being implemented in their cars, and they are threatening a two-day strike in early September that could bring much of the city's cab service to a halt.
At issue is the Taxi & Limousine Commission's Taxi Technology Enhancement program, which would place displays in the back seats of all of the city's cabs by February 2008, along with card-swipe units to facilitate credit and debit card payments.
City officials say the goal is strictly to improve customer service, not only through card acceptance but in-car mapping, entertainment content and two-way messaging to speed the retrieval of lost items. But a number of cabbies say the devices will not only invade their privacy, they will eat away at their take-home pay.
"The taxi cab is a quintessential New York symbol, and we don't take it lightly when changes are made to the cab," said Bhairavi Desai, co-founder of the New York Taxi Workers' Alliance, which is urging its 10,000 members to shut off their cars Wed. Sept. 5 and Thur. Sept. 6.
Desai said that even though the NYTWA's membership only represents about a fourth of the drivers working in the city, she anticipates most, if not all, New York drivers will take part in the strike.
"We think it could be every taxi on the street," she said.
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Transaction fees, GPS tracking at the heart of disagreement
The TLC's Technology Enhancement program is built around four key requirements: universal credit/debit card acceptance; electronic trip sheets that automatically record the information drivers currently capture with pen and paper; two-way text messaging to help garages communicate quicker with drivers about lost items; and a passenger-facing screen that displays real-time maps of the trip, public service announcements, and news and entertainment content. Taxi owners have a choice of four approved vendors for the technology, which is estimated to carry a total price tag of about $20 million for the city's 13,087 cabs.
Allan Fromberg, deputy commissioner for public affairs for the TLC, said customer service, particularly in the form of card acceptance, is the primary push for the program.
But under the terms of the TLC program, it is the drivers that will be required to pay the transaction fees whenever a card is used. Desai said those fees would amount to about $1,000 per year for a driver who took a single card transaction per day.
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Above: The view from the passenger's seat, with card swipe unit visible in upper-right. Below: A close-up of the passenger-facing screen, which is used for mapping and entertainment content. |
"It's actually being used to capture drivers' economic data," she said, disputing the TLC assertion that GPS is only used for mapping and the location of lost property. "They put it on the meter — you don't need it on the meter if it's only tracking where the vehicle is moving. Drivers are independent contractors, not employees. Why should they give up their private financial information? It's like if a company owner got an employee's bank statement each month."
The card acceptance mechanism is also connected to the car's meter. Desai said that if either of these crucial components malfunctions, has trouble finding a signal or goes offline for any reason, the meter will automatically shut off and the driver won't be able to accept fares until the problems are solved.
So far, about 3,000 of the city's taxis have the card swipes installed; about 1,300 have the full package of technology. Already, Desai said she is getting reports of cars that can't get a strong enough signal to connect for either the on-screen data or a transaction.
"There have been a lot of signal failures," she said. "The advice the drivers are getting from the garage is, ‘Oh, just keep driving around until you get a signal.'"
TLC representatives would not comment on the potential strike, but did issue a statement from commissioner and chairman Matthew W. Daus:
"Under the Bloomberg Administration, taxicab drivers continue to be a top priority – with the last two fare increases delivering a living wage of over $17 per hour. Riders have paid an additional $1 billion directly to drivers' pockets, were promised technology enhancements in return – and they deserve to have that promise kept. The taxicab industry has never been healthier and safer, and I am confident that the vast majority of our 44,000 professional drivers will continue to serve the public as they do so well every day."
In 2004, New York's taxi system raised fares for the first time since 1996, and 75 percent of that raise went to drivers. In 2005 rates were raised again, with 100 percent of the increase going to drivers — the first time that has ever happened in the history of the organization. The TLC estimates that drivers have collected an extra $1 billion in increased fares since 2004.
What will the passengers think?
New Yorkers are a notoriously opinionated bunch, and those opinions seem divided as to the fairness and value of the technology enhancements.
Diane Roback, a publishing executive who considers herself a frequent cab passenger, likes the idea of being able to use the company credit card but doesn't think the benefits outweigh the drawbacks.
"I don't like to see cabbies charged a percentage of the transaction," she said. "They have a hard enough time making a decent wage."
She also takes extreme exception to the GPS technology, and the incremental loss of privacy for both driver and passenger it seems to represent.
"New Yorkers generally don't need a GPS system to give them directions," she said. "So this is being done for tourists? That's a big quality of life issue that's being inflicted on us when it doesn't seem like it would be any real gain for us. I hate giving up any level of privacy, and once this is given up, it's never given back."
But Soledad Roybal, a freelance events manager who also frequents the taxi system, said she would welcome the information such a system would provide, and how it might help make drivers more accountable.
"As a passenger, I have felt the frustration on more than one occasion of a taxi driver not knowing where he is going or taking advantage of me when I don't know, especially from the airport," she said. "I do tend to wonder if the reason that the drivers don't want this is because they could be forced to take a different, less profitable route."
As for the transaction fee for card payments, Roybal said that's part of the cost of doing business. "Small business — including my parents — take credit cards for all amounts small and large, and they pay the fee," she said.