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SALT LAKE CITY — Climb into Rob Sharp's cab and you'll get a geography and history lesson en route to your destination.
A driver for Ute Cab Co. for nearly 30 years, Sharp is an unofficial ambassador for a city he loves. "We want people to have a good experience," he said.
But Sharp is concerned for the future of Salt Lake City's cab service in the wake of new government regulations, high fuel prices and the customary downturn in business in the spring.
"I suppose we'll survive, but it will bring turmoil to the business," said Sharp, an independent contractor for Ute Cab Co. who owns and operates his own cab. Sharp says he's out about $500 month because of the perfect storm of events.
Cab drivers who lease taxis from cab companies are even more vulnerable. To keep pace with the overhead, some drivers are working very long days so they can collect as many fares as possible.
"Some of them are practically living in their cars," Sharp said. That's worrisome because "we want to keep good, reasonable drivers who are happy and not burning out."
Sharp said he does not blame his employer. Ute Cab Co., family owned for 66 years, attempts to treat its employees like family, said Jim Curtis, dispatch supervisor. "We want to keep it that way," he said.
Moreover, the company wants to keep cab service affordable to customers who range from "little old ladies going to a dentist appointment," Sharp said, to people who have medical emergencies to people who have imbibed too much at a local tavern.
But the company revenues come from drivers who are independent contractors who pay to lease cabs. As the cost of those leases goes up, drivers pocket less of their fares and passengers end up paying more. Leases cover the costs of vehicle maintenance, purchases of newer automobiles, equip 5 percent of the fleet to be accessible for people with disabilities and pay higher insurance premiums for a higher degree of coverage as required by the city.
"The only revenue the company receives is from the drivers," Curtis explained. "They're absolutely everything, them and the public."
As overhead increases, some cabbies work fewer shifts and take other jobs to support their families. Some quit, which means they may be replaced with less experienced drivers. Or the cab companies will have to make do with fewer drivers working longer days.
As more costs are passed on to the public, Sharp said he fears that "we're going to lose ridership."
Elsewhere in the nation, taxi companies, too, are struggling to comply with an Americans with Disabilities Act requirement to increase the number of wheelchair-accessible cabs on the street. Part of New York's fleet is in violation of the act, according to an Upper East Side assemblyman. Only 323 of more than 13,000 yellow taxis are equipped to enable wheelchair users to get in and out, according wsj.com.
The anxiety among Salt Lake cab companies is palpable as the deadline nears for the Salt Lake City's Department of Airports' "request for proposals" for on-demand taxicab concessions within the city, including the Salt Lake City International Airport.
Presently, airport fares comprise about one-fourth of Ute Cab Co.'s business.
Qualifying out-of-state companies are eligible to submit proposals. Winning companies must fully comply with state, local and federal requirements.
In November, the Salt Lake City Council approved new ordinances intended to provide city residents and visitors with newer, more reliable, affordable, cleaner and safer ground transportation and taxi service. Under the changes, the city will contract with two to four cab companies to provide the service. Presently, cab companies operating in Salt Lake City are permitted to do so under certificates of public convenience. They will expire once the city selects one or more providers under a competitive bidding process.
Ute Cab Co. owner Ken Olsen said the costs of complying with multiple layers of regulation will be challenging. But his company was founded by his wife's grandfather. He's committed to find a way to make it work for the sake of his family and the drivers who depend upon the company to make a living.
And local cab companies, while competitors, understand the need to keep taxi fares affordable to residents of the Salt Lake valley as well as tourists.
"We would like to keep giving affordable rates to everybody," Curtis said.
E-mail:mcortez@ksl.com
