Taxi Regulation

On Jan. 1, the Metropolitan Transit Development Board, those that operate the trolley and the bus company, will regulate taxicabs, thus ending the city of San Diego’s 60 years of regulating taxicabs.

For some local officials, this was hailed as a crowning achievement, but in reality all this move will achieve is higher rates for the citizens of San Diego.

Before I address why the rates will increase dramatically, I must say that I am a big supporter of the San Diego Trolley. It is my firm belief that this fine city made a mistake in eliminating the trolley years ago. The issue here is not whether I support MTDB, but the fact that it will create a bigger bureaucracy and charge the public for it.

The argument in favor of allowing MTDB to regulate the taxi industry is that MTDB will provide coordinated transportation, and allow less duplication of resources. The truth is, no such thing will happen. MTDB will regulate taxis only in the city of San Diego and has nothing to do with taxis in National City, Chula Vista or anywhere else. MTDB will only create a bigger bureaucracy, and make the taxi industry pay more.

MTDB says that it will only regulate the taxi industry at full-cost recovery. I might add that full-cost recovery is open to interpretation. For example, the industry pays $100,000 in regulatory fees. MTDB feels that full-cost recovery is closer to $300,000.

The industry pays enough fees. For example, in addition to the $100,000 in regulatory fees, we pay an additional $60,000 in business license fees and another $30,000 in taxi drivers license fees and I could go on and on. MTDB’s assertion that we pay more fees is nonsense. Take a look at the budget of MTDB and the salaries of the administrators. I know of no member of the taxi industry that makes $47,000 a year. Many of us work 55 to 60 hours a week trying to make our business work. We would like fancy salaries and a personal secretary, but we have to cut costs to provide reasonable transportation for the citizens of San Diego.

Having MTDB regulate taxicabs will only mean that our regulatory fees will increase threefold, and that means in order for us to stay in business we would have to pass this cost to the customer. Just keep in mind that the taxi industry had nothing to do with increasing the taxi rates. We fought tooth and nail to maintain low prices. The blame for this rests with our elected officials in the city of San Diego.

Lastly, and most important, with MTDB regulating the taxi industry it represents a conflict of interest because MTDB is a transportation entity regulating another. In short, it is like a fox minding the chicken coop. Also, unlike MTDB, we are a private, for-profit industry and we receive no federal or state subsidies. MTDB receives millions of dollars in state and federal subsidies.

MTDB should stick with what they know, trolley cars and buses. Unfortunately, the biggest losers of this whole mess are the citizens of San Diego, who will have to pay more for taxicabs.

ALFREDO HUESO

Vice President, Operations

USA Cab Ltd.