Using Taxi Cards in Subsidized Taxi Programs What role should new technology play in the context of the ailing taxi industry?
A Presentation by Terra Curtis
September 27, 2016
International Conference on Demand-Responsive Transportation
Nelson\Nygaard Consulting Associates
How Taxi Vouchers Work from a Cash Flow Perspective
2
Nelson\Nygaard Consulting Associates
Taxi Cards: A Better Way?
Replace paper with digital solution
Like a bank debit card – Put money in an account – Charge taxi rides
Used for ADA supplemental taxi
subsidy programs in San Francisco, Los Angeles, Chicago, and other cities
Source: SFCTA
3
Nelson\Nygaard Consulting Associates
Benefits
Customers – No more paper to carry – Opportunity to reload value online – Nothing to print, mail, or keep safe
Drivers – Easier payment processing
Companies – Simpler invoicing
Cities – Fraud protection and automated trip validation – Real-time record of trips – Flexibility to change program rules – Cooperation among cities
4
Alameda County City-Based Taxi Subsidy Programs
CASE STUDY
Nelson\Nygaard Consulting Associates
Available Products & Vendors
MJM Innovations CabConnect
Pre-Paid Debit Cards
Swipe technology
Integration with PSP units (and meters)
Vendor-provided hardware
Vendor hardware integration with meter
Real-time Trip Data
Integration with Eligibility Database
Flywheel Integration
6
N/A
Nelson\Nygaard Consulting Associates
Available Products & Vendors
Flywheel and TaxiOS – Taxi hailing mobile app and fleet management software
Source: Flywheel
7
Nelson\Nygaard Consulting Associates
Mixed Regulatory Environment
Berkeley – All taxis required to accept scrip – Not required to accept credit cards
Fremont
– No provision related to credit cards
Hayward – Recent revisions require credit card
acceptance and centralized radio dispatch
Oakland – Required to accept credit cards – Potentially will require trip data tracking – Fleets with more than five vehicles
required to have radio dispatch
Region – Clipper Card Updates, East
Bay Paratransit fare payment
8
Nelson\Nygaard Consulting Associates
Taxi Market Considerations
None of the taxi companies have payment devices compatible with either vendor’s debit card products
Facing challenges attracting/retaining drivers Lost business due to competition from TNCs Limited wheelchair accessibility
9
Nelson\Nygaard Consulting Associates
Benefits and Costs
Estimated Annual Implementation Costs
Potential Annual Cost Savings
MJM: $128,434
CabConnect + Flywheel:
$65,074
$64,150
Costs and savings estimated over a 5-year period for both systems implemented in Hayward, Oakland, and Fremont
Cost savings include reductions to printing/mailing and reduction to program misuse
Outreach/communications costs not included (will remain the same)
10
What’s happening now?
What is the role of technology in the context of the ailing taxi industry?
Nelson\Nygaard Consulting Associates
Marin’s Paperless Voucher System
15
Nelson\Nygaard Consulting Associates
Available Products & Vendors
MJM – Debit card – Payment processing hardware
CabConnect
– Debit card – Payment processing hardware
smartphones (partnership with Flywheel)
– Used in San Francisco Source: MJM Innovations
16
Nelson\Nygaard Consulting Associates
Taxi Market Considerations
Berkeley – All taxis permitted in
Berkeley required to accept scrip
– Five taxi companies service majority of trips, but many owner/operator companies
Fremont – One contracted provider – Non-accessible, use mobile
payment app
Hayward – One contracted provider with
multiple business arms – Enterprising owner, willing to
work with programs but payment hardware not connected to meter, GPS
Oakland – Two contracted providers,
using mobile payment app
17
