Toward a Fare Solution

Almost 10 years ago, San Diego took a giant step in the direction of deregulating taxi service, eliminating most price controls and limits on the number of cabs. But there have been problems with the deregulation, and, little by little, rules have been been reinstituted.

First, there was a rate ceiling--at the airport and then citywide--to help prevent gouging. Then there were limits on the number of cabs at the airport, to cut down on congestion. Then came an ordinance mandating a dress code and a proficiency in English and knowledge of the San Diego area for airport cabbies.

When the number of cabs passed 900 and many drivers were complaining that it was tough to make a living, the city put a moratorium on permits. Some cabbies and others say there are still too many taxis and that the resulting low wages reduce the quality of service.

But, unlike many other big cities, San Diego has continued to allow cab companies to set their own fares as long as they don’t exceed the maximum. As a result, a 5-mile trip could cost anywhere from $5.80 to $9.80.

But what looks like a competitive market to the regular taxi rider, ends up looking like a rip-off to the uninitiated, especially the tourist or the business traveler who is used to fixed rates at most other major American airports.

Even those in the know can have trouble price shopping. For a trip from downtown to San Carlos, for instance, calls to six companies listed in the Yellow Pages yielded estimates of $20 to $22. But the estimates were misleading, because the company that estimated $22 actually has rates that are lower than one of the companies that quoted $20.

Comparing per-mile and “flag drop” rates (the price just to get in the cab) is more precise, but charges for delays in traffic also vary, complicating the calculations.

Imagine trying to do this at the airport after a cross-country trip--with the cab starter glaring at you because you are slowing traffic.

In such a situation, the benefits of competitive pricing to the consumer are meaningless. The luck of the draw determines the price. And such a system is sure to sow ill will, which in a tourist city is foolish.

Not surprisingly there have been complaints, and the tourist industry and some cab companies are pushing for uniform rates. At least for airport trips, that makes sense. And we hope the Metropolitan Transit Development Board will come to the same conclusion.

Unless there is a way for consumers to compare prices and service, the notion of a competitive system is an illusion. And what is gained by the illusion, we suspect, is more than lost in ill will.