A GPS Solution by Barry Korengold

In light of the current airport debate, I think it'd be helpful to revisit this proposal for a GPS solution that the SFCDA submitted to airport officials last May.  This will also give some insight into the ideas being considered at the time.  The "two line system" I refer to, was a proposal to have a separate "local" line and a long line. The drivers would choose which line to wait in, with 2 different curb spaces at the terminals.


I think it's time to reconsider this GPS solution.  A system such as this could have feasibly been in place by now.

Barry  Korengold

May 7, 2010

Airport Directors                                                                                                            

Landside Operations Management
San Francisco International Airport

Dear Sirs/Madam,

We’ve considered the various options proposed at the April 28th meeting, including our own proposal of a single line with a minimum $20 or $25 fare from the airport.  We’ve heard from many drivers on the subject, and although we think a $25 minimum would eliminate the angst of getting a “short” ride after waiting long periods, many drivers are afraid of losing too much business and if the minimum was lower, it wouldn’t be enough to make up for the wait.

The SFCDA’s board has concluded that some kind of “short” system is needed to make it worthwhile for cab drivers to spend the time necessary to have enough cabs available at busy times.

We feel there will be problems with a two line system. It would take up more curbspace, and tend to fall apart when it got busy, creating the need for a single line.  Many drivers who waited in the “long” line, would be forced to take local rides.  It would also be very subjective when the starters would start sending cabs from the long line to pick up from the local line.

The New York style system where the starters give the passengers tickets indicating they’re shorts, would be very cumbersome during busy times, requires lots of extra personnel and lends itself to corruption.

We spoke at length with John Wolpert, CEO of UpStart Mobile, a Best Buy spinout, and previously designed systems for IBM.  He feels GPS can be used to verify geographical “local” trips and prevent cheating of the system, but is not quite reliable enough to use for real time verification.  In other words, there are glitches and reasons the signal might be lost temporarily, but that the information could be “cached” and recovered at a later time to help keep drivers honest.

So here’s what we came up with:

Clear geographical parameters would be set for trips considered “local”.  These parameters are subject to discussion, but we suggest Cezar Chavez to the north, Mission street to the west, Daly City, South City, Skyline Blvd, San Mateo, Foster City.  These are all trips of $25 or less.

For efficiency and to avoid backups, only cabs with short or “local” rides would pass by the exit gate.  A sensor would establish what cab was at the gate, the driver would swipe their card and the system would match the driver with the vehicle.  When the driver comes back and goes through the “local” line, he/she swipes his (or her) card as they do now before entering the main lot, and there’d be a record that they went through the local line.

If a driver tried to cheat the system, nothing would happen that shift, but the GPS information would show they went further than the established boundaries or that they turned off their GPS, the computer program would automatically flag these trips and they would later be blocked from the airport for a significant period of time.

If the penalty was stiff enough, drivers wouldn’t try to beat this system.  There should be a slight buffer zone however, so that if a passenger is going just a few blocks beyond the boundaries the driver won’t get penalized.  This could be programmed so that the actual “red flag” zone was a bit beyond the established boundaries.  Egregious violators would be easy to identify and less serious breaches could be admonished on the first violation.

Wolpert feels such a system would be relatively easy and inexpensive to implement, and could reasonably be in place sometime between September and the beginning of the year.

We like this system because it preserves the safety net of the short line, and also prevents corruption on the part of drivers or starters.  It’s not a huge change in procedure, and allows for further testing of a more complete and real time GPS system.

Although problems have been identified with the current time based short system, we don’t feel it’s as bad as portrayed in the media or that there’s an urgent need to get rid of it immediately.  The SF Weekly article was a staged event, with the driver purposely driving crazy fast to make his point.  We feel most experienced cabdrivers are safe and courteous and we should stick with this system until this GPS backed system is in place.

Thank you for considering our ideas, and we urge you to go with this plan.

Barry Korengold
President, San Francisco Cab Drivers Association

A Green Christmas

I was surprised by an e-vite from manager Athan Rebellos to attend Green Cab's Christmas party at the Sierra Bowl in Daly City. I mean, the company is owned by Mark Gruberg and is a bastion of UTW drivers.

Since I've bad-mouthed the organization and its leader more than once, I wondered if they intended to throw bowling balls at me. On the other hand, no other taxi company has ever invited me to a Christmas Party - I have my medallion with Luxor and I don't even know if they have a Christmas party - so I went.

Athan told me that he'd invited me so that I'd write the event up in my blog but that I couldn't tell anybody his bowling score. It seemed like a fair exchange for free pizza and conviviality. 

Green Cab is a very interesting company and the drivers I talked with were enthusiastic about working there.

Green Cab is unique in this city for being a democracy. Athan was elected to his position as manager and has to be re-elected every year. This creates a very different atmosphere from that of most companies where the management style appears to have been copied from the Gestapo.

"I didn't know what to do when I first came over here," a medallion holder told me, "Athan was friendly and actually wanted to hear my ideas ... I could probably make more money somewhere else but it's so enjoyable working here that I'm not going to change."

The type of party itself was democratically chosen. The drivers voted on what they should do for a Xmas party and the majority wanted to go bowling.

I had a good time, enjoyed the pizza, met some very nice people and ran into other people I don't see very often. It was especially nice to talk with Rua Graffis who was a political ally and a pal back when I first started driving 27 year ago.

In keeping with my promise to Athan, I can only say that his score was less than 300 but more than 93.

Airport Commission Nixes Airport Plan

President of the San Francisco Airport Commission, Larry Mazzola, sent the Airport's plan to end shorts back to the drawing board after listening to airport and MTA spokesmen as well as seventeen members of the public.

Tyg McCoy, Deputy Airport Director, presented the plan saying that the airport had worked together with a committee of twelve people from all aspects of the taxi industry to formulate the plan which would pay cab drivers a minimum of $17 for all rides, pass $3 of the $4 airport fee back to the drivers, and eliminate shorts. He said that, although there were numerous ideas floated during the committee meetings, the "vast majority" of the drivers were behind the SFO plan.

Linda S. Crayton, Vice President of Airport Commission, asked him if he'd done a survey of the taxi drivers. He said that he hadn't but felt confident that the plan had a broad consensus in its favor.

Then, during public comment, all 17 of the  speakers trashed the plan. Medallion holder and advertising star Brad Newsham, even threatened to lead a strike against the SFO on February 5, 2010 if the plan went into effect on February 1st.

The opposition to the plan was not a case of one group organizing a protest but rather a true consensus of the real "vast majority" of the industry. Speakers against the airport's plan included: members of the United Taxicab Workers, the San Francisco Cab Drivers Association and the Medallion Holders Association as well as Marty Smith, who is a manager at Luxor Cab, and myself.

Among the reasons given for attacking the plan were:

• It would drastically reduce driver income.
• It would stop many drivers from working the airport.
• It would thus hurt service to the public.
• It would not stop cab drivers from racing.

President Mazzola, reading the writing on the wall, ended public comment after one hour and instructed McCoy (and presumably us) to come back with a plan that actually had the support of the drivers.

Even Javis Murray of the MTA, who spoke in favor of the plan, told me after the meeting that he and the MTA backed the plan primarily because it would end "time-based shorts." He added that he would back any plan that would stop dangerous driving on the part of cab drivers.

Both Barry Korengold of the SFCDA and medallion holder Murai, who were on the Airport Committee, told me that that the Airport's presentation was misleading.

It sounded, for instance, as if the plan called for a minimum of $17 plus a $3 charge back on the $4 airport fee which would equal $16 (17+3-4) to the driver.

Actually, the plan calls for the $17 figure to include the $3 charge back, meaning that the drivers would only get $13 (17-4). ($13 an hour is approximately how much is costs a cab driver to operate a taxi.)

The SFO also plans to move airport shuttles down to the same level as the cabs thus putting them in direct competition with the taxis. This wasn't mentioned during the presentation and is vehemently opposed by cab drivers.

Most of the people I talked with who attended the Airport Committee meetings felt that (with the exception of McCoy) SFO spokesman negotiated in bad faith and used the committee to create the illusion of a consensus. SFO officials pretended to listen to the drivers and then went ahead with basically the same plan that they started with in the first place.

Korengold and Murai also pointed out the Airport Committee had voted overwhelmingly to support a distance-based short system like they have in New York City - only to have the SFO shoot it down without further discussion.

Airport's Plan to Shaft Cab Drivers

The Airport Commission is going to vote tomorrow on a plan to eliminate shorts. Instead they will have a $14 minimum and allow a $3 charge back for the $4 airport fee.

Since I don't play the airport I'm going to link you with John Han's blog The San Francisco Taxi Industry Advocacy Jounal.

Personally I think the best option would be the New York plan where a starter checks with the cab to find out where the driver is going then gives a short ticket for certain areas. There would be no time limit so there be no reason to race.

If you don't like the plan, I think tomorrow is the last chance to protest.

MHA 2010 Meeting

The Medallion Holders Association held its annual meeting Monday at the Mars Bar and Cafe.

A nice buffet which included hot wings, hors d'oeuvres and delicious hamburgers seemed to be enjoyed by just about everybody. Board member Mike Spain briefly summarized his plan for peak-time medallions and President Carl Macmurdo discussed various subjects and strategies important to the members. But the highlight of the evening was an appearance by Deputy Director of Taxi Services Christiane Hayashi.

Showing her usual charm and charisma, the director fielded questions and used them as a springboard to express her thinking on various topics. Not necessarily in order, these included:

The Fixed Price for Selling Medallions.

Hayashi said that she liked the fixed price because:

• It's unique to San Francisco and other cities have shown an interest in it.
• The price is low enough to be affordable for drivers. 
• It thus allows buyers to get reasonable loan options.

She pointed that in New York, where medallions often sell for $500,000 or more, only high interest loans with balloon payments are available and that buyers rarely succeed in paying off their loans.

One medallion holder said that the $150,000 that a holder would clear by selling the medallion would not be enough to retire on.

Ms. Hayashi responded by saying that the medallion sales were never intended to be a retirement but rather a way to help people retire in conjunction with other savings.

She added that she didn't expect the Fixed Price to go over $300,000. Otherwise medallions would no longer remain affordable for working drivers.

Peak-Time Medallions

After hearing plans about peak-time medallions for as long as I've been in the cab business, it looks like an idea whose time has come.

Director Hayashi said that people in city government wanted to see it happen so it will - probably early next year.

Various plans for how this will happen are being discussed at TAC but she did say that her plan called for the peak-time medallions to be leased from the MTA.

Not, on the other hand, a popular idea among MHA members.

Watch Those Flashers

Medallion holder Norma Greer had recently written to Hayashi about being harassed by a policeman when she tried to drop in a bus stop. The cop also threatened to cite her for using her flashers illegally.

The director said that she looked up the law and there is indeed an obscure vehicle code against using the flashers for anything except emergencies.

Hayashi said that it was legal to drop in a bus stop - as long you pull "as far forward as possible." She also said that she would discuss enforcement policy with the PCOs (meter maids).

In the meantime, she added that you should fight any such tickets and report the incidents to her office. It's also helpful to get the badge number of the officer involved.


Electronic Waybills and Credit Cards

Hayashi said all taxis would probably have electronic waybills installed by the first quarter of 2011. She added that Luxor and Yellow Cab were already equipped to handle them right now.

She expressed enthusiasm for the new technology because "we'll be able to gather accurate information" about the number of rides and so forth "for the first time ever." This could prove invaluable to the Controller's office in helping to figure out how to improve taxi service.

Ms. Hayashi also said that systems for handling credit cards would be installed on the back seat of some cabs at the option of each company.  One such system, VeriFone, would:

• Allow the customers to swipe the cards themselves.
• Prompt the customer for a tip.
• Automatically transfer the funds into a driver's bank account.

There would be a 5% charge to the driver but Hayashi says that studies have shown that drivers make more than the additional 5% off the tips because of the prompting.

She also said owners and medallion holders could use other systems if they wanted - citing Yellow Cab that has chosen to keep their own system - but, in such cases, it would be illegal to pass the credit card charges onto the drivers.

This naturally segued into ...

Calling 311

Director Hayashi went on to say that every cab driver in San Francisco was required to take credit cards and, if they didn't, other drivers should report the culprits on 311. She also added other crimes such as being rude to customers or reckless driving to the list of things that should be reported.

So ... next time you see a cab driver holding up a customer with a Uzi be sure to call 311.

(Okay. Okay. Off with the sarcasm.)

I did point out to Hayashi that my information was that the taxi drivers, who were turning down credit cards, mostly drove for companies that were illegally charging the drivers 10% - 12% per transaction.

Hayashi said that we should let her know which companies were doing this.

Taking her at her word - the number to call (if your company is illegally charging you for credit card transactions) is 415.701.5235

In the past, Ms. Hayashi has promised anonymity and protection to any driver who makes a complaint against a company. I've never known her to go back on her word.

Taxi Services Speeds Up the Medallion Applicant Process

Medallion applicants will no longer necessarily have to have a hearing in order to be issued a medallion. In the future the process will go like this:

1. The SFMTA will notify the applicant of the availability of a medallion.
2.  They will concurrently post the notices on the SFMTA website and several other places inviting the public to assist in its investigation of the applicant.
3.The applicant will supply proof that he or she is qualified for a medallion.
4. SFMTA investigators will review the materials and decide whether to issue or deny the application for a medallion.
5. If they decide to issue the medallion, a member of public will have 20 business days to protest the issuance and request a hearing.
6. The SFMTA must set the hearing within 60 days.
7. The burden of proof for not issuing the medallion would be on the member of the public.

If, on the other hand, the applicant is denied issuance, he or she has 20 business to request a hearing and the SFMTA must set the hearing within 60 days. The burden of proof would be on the applicant.

These procedural changes were presented by Jarvis Murray (photo, standing) at this week's TAC meeting.

The official explanation is that the change is being made because the hearings have become a bottleneck slowing down the entire process. But I suspect that the ignorance of the taxi business exhibited by many of the hearing officers (an officer at a recent hearing reputedly berated an applicant for NOT playing the airport) may also have had something to do with the decision. Hopefully, with fewer cases to be heard, only officers schooled in the cab business will be presiding from now on.

A Change in the Public Speaking Format


Also at the Taxi Advisory Council meeting, Chairperson Chris Sweis announced a change in the order in which the public will be allowed to speak on an item. Prior to Monday's meeting, the public spoke first. From the last meeting on, the order will now be:

1. Reports on a subject will be given.
2. The council members will discuss the subject.
3. The public will be allowed to comment (without asking specific questions).
4. The council members will be allowed to make motions and vote.

The change was made because many members of the public, including myself, felt that they were unable to address a subject properly unless they were given the opportunity to speak after the council members had spoken. And, indeed, I think that the public contributed much more to this weeks discussions than they had in the past.

I also think that Chris Sweis (photo) is to be commended for showing the largeness of mind to change his procedures in order to suit us.

How to Improve Service? Centralized Dispatch?

Before entering this debate, I think it would be helpful to imagine an ideal business model. And, this model should be looked at strictly from the standpoint of picking up cab customers in the most efficient way possible. It should have:

1. One dispatching system. As to whether this would be one big company like Pre-K Yellow Cab or a centralized dispatch is not important. What's essential is that all the taxis in the city would be connected to it.
     A. You ask why? Primarily because it would minimize the major curse of all radio/computer dispatch players - the NO-GO. No mas customers calling 7 cab companies simultaneously.
     B. No mas 4 taxis showing up for an order while passing 3 potential calls en route.
     C. This would work for the customers as well because they wouldn't be calling for, say, a distant Yellow when there was a Luxor a block away.

2. I think the system should be computerized with a modern app like Cabulous and the cabs should all be GPS enabled.
     A. I have a vision of a computer or a dispatcher automatically assigning each order to the nearest taxi. No muss mo fuss.

3. All drivers should have to pick up whatever order they are assigned unless they have very, very good reasons.
     A. I'm not interested in the employee vs Independent Contractor debate here. This is an "Ideal" system.
     B. The drivers, for instance, could agree to pick up all dispatched orders as part of their contracts. As to whether or not this would play with the EDD is something I can't answer.
     C. In any case, certain orders would not be picked up (for one reason or another) unless such a rule was in place.

Of course the system would be overwhelmed from time to time like during conventions or rush hour Friday nights but, on the whole, I think it would give the City very good coverage with the number of taxis we have now. It might also allow a cab to do things like piggy-back pick-ups when it's the only taxi in an area like the deep Sunset. And, customers could be given a more accurate estimation of how long it would take for them to get a cab; thus easing their anxiety, hostility and their desperate desire to ride in expensive limos.

Coming Soon - Reality.