(PDF Link)

I’m returning from my blogging hiatus at an amazingly unique time in the history of San Francisco taxi regulation. In the past I’ve written extensively about the San Francisco medallion system and other regulations, including:

• What would be a fair medallion price if they were transferable? (Answer: between $200,000 and $350,000)
• Pricing analysis of proposed (and now enacted) gate fee increases in late 2007
• The lack of supply to meet demand for taxicabs during peak periods and possible solutions. [1] [2] [3] [4] [5]

Thanks to a combination of forces the SFMTA has acted extremely quickly to create a pilot program with a view toward migrating the City to a transferable medallion scheme. A full writeup will have to wait, but for now here’s a scan of the form that the SFMTA is sending out to drivers to gauge interest in taxi medallion buyers and sellers.

Link:

• SFMTA Taxi Medallion Sales Pilot Program (pdf)

Yesterday I drove a normal “extra” day shift from 7a-5p. Some notes:

• I drove my favorite taxicab: the Toyota Camry Hybrid. Ample space, great handling, adequate (but not stellar) gas mileage, smooth ride, good stereo and accessories, nice pickup.
• I thought I would tire of cab driving after a year, but I still enjoy it. Approaching my third year. Scary! Admittedly, it is much more fun to drive just 1 or 2 days a week. When I drove 3+ per week it felt like a job.
• Thursday was a very busy day, owing in part to a fatal Muni accident which shut down all inbound/outbound Muni Metro service for a significant portion of the day.

  However, both as a dispatch order taker and as a driver I notice a significant improvement in demand for taxicabs (and thus earnings) compared to last year. Last winter was the toughest I ever experienced driving a cab, when $150 take-home seemed like an amazing accomplishment. (My all-time average prior was $170 per shift, so a peak of $150 per shift is extremely scary.)

  In the mornings in the dispatch office we notice significantly higher numbers of airport advances and generally higher numbers of inbound calls. On the street I’m again finding hails in unpredictable areas, a fun sign of increased demand.

  It is fascinating to directly experience fluctuation in demand for a service I provide that so closely parallels the greater economy.

• I had an amazing nonstop pickup streak yesterday. As a day driver, it’s tough for me to encounter this regularly, but some night drivers (especially on weekends) are very familiar with this feeling: when you drop and have an immediate or near-immediate followup fare it’s like a drug.

  Here’s mine:

  • Picked up a radio call at the St Francis hospital. An older woman got in my cab and we headed out to her home in the Inner Sunset. We spoke at length about her ailment, apparently some sort of muscle related pain in her legs. She’s going through physical therapy at the St Francis.

    I love the drive from St Francis hospital to the Sunset district. That’s fortunate for me, as countless elderly ladies seem to regularly commute to and from the St Francis hospital and the Sunset. They should have just put the St Francis in the Sunset.

    Depending on the traffic I’ll head down Hyde, out Turk to Masonic, out Masonic to Lincoln to 7th Ave and left. As we passed by an elder home I saw an elderly couple desperately hailing. Noted.

    Dropped off my St Francis fare and returned. They were still there!

  • Very short fare, from 7th Ave and Irving to the UC Hospital (near 3rd and Parnassus). Checked in via radio for an en route order at the UC Hospital. She was ready to go as soon as I arrived and heading toward Glen Park.

    When I first started driving I wouldn’t have been excited to go to Glen Park from the UC. The optimal route is difficult to determine given rush hour traffic and traffic signal priorities, and Diamond Heights/Glen Park is rather maze like. In my wiser years my ways have changed. I worked out a nice path and we flew down O’Shaughnessy with Toyota’s Hybrid drivetrain whining in pleasure as it gobbled up regenerative juice.

    After dropping checked in for an order nearby in Bernal Heights. Another case of “if I had just started driving I wouldn’t know where the f* those streets are.” But, now I know and it was close by.

  • Picked up a middle-aged lady from the Bernal Heights Library. (Thanks for waiting, middle-aged lady.) She had just finished her weekly writing class which she enjoys immensely. Dropped at 23rd and Dolores.

    23rd and Dolores is rather residential and not a prime place for finding passengers or hailing cabs. I spent a minute filling out my waybill after my passenger had departed. To my surprise a man gave me the “eye” as he walked toward my freshly empty cab and I gladly welcomed him in. We headed downtown. Nice. $70 (revenue, not income) in about in hour. Keep up the good work, San Francisco economy.

• Thursdays I work in the dispatch office for a few hours before driving. Normally I answer incoming telephone requests for taxi service. I kindly greet our callers and enter / confirm their address, destination and special needs. Dispatch operations at our company use an older but very effective computer solution from the 90s. The system automatically remembers past callers and matches their address. I simply send this to the dispatcher’s screen and s/he sees all the currently open orders. (I’ve written about the radio dispatch process once or twice before.)

  Unfortunately this past Thursday our computers didn’t cooperate so we were forced to use the old fashioned system — paper and pen. I take orders (address and phone) on the left side of a pad of paper, the dispatcher finds cabs and writes the cab number on the right side of the paper.

  I was amazed at how well this worked. For the drivers and customers there was little difference between the two systems. We were able to dispatch drivers to hundreds of dollars worth of business with a phone, a pad of paper, and a motorola radio. Sometimes low tech is okay.

• Sometimes high tech is okay too. Thursday I made an extra $70 during my shift using Cabulous, smart phone software that connects individual drivers with passengers via GPS maps. (Disclaimer: I am an advisor to the Cabulous team.)

  So far the Cabulous team has been doing their best to balance the difficult equations of driver availability vs passenger demand on the Cabulous network. But, regardless of technology used, from hailing a cab with your hand to calling a company dispatch service, this is an impossible task.

  I’ve helped test the Cabulous driver system on the iPhone on AT&T and my BlackBerry 8820 on T-Mobile. Over the past 6 months of testing and subsequent public release regular usage I haven’t earned much more than $20 per shift and not usually exceeding 2 successful hails per shift using Cabulous.

  Yesterday was different. As usual, I used the J2ME CabulousLite app on my BlackBerry 8820 on T-Mobile. The “lite” app uses a very basic interface to let me login and then it simply periodically reports my GPS location to the Cabulous server. Twilio integration notifies me via telephone text to speech where people have hailed me, and if I accept then I can call the passenger directly.

  I was amazed by how much extra it earned me — I earned just over $70 just from Cabulous yesterday. I was also impressed how well it integrated with my normal sources of fares: street hails and traditional radio dispatch.

  Here are my Cabulous hails:

  • After picking up a radio dispatch order in Marina/Cow Hollow I was headed toward the JCC with a very precocious 5 year old and her adoring mother. (When I had pulled up to their luxurious abode the 5-year old clearly raised her hand to hail my cab. A lifelong customer.)

    Approaching the JCC I received a Cabulous call. (Unfortunately, there isn’t a good way to distinguish a Cabulous call from a personal call, my only hint is whether or not the incoming call registers as an existing entry in my personal address book.) Clicked on the speakerphone to hear madame Twilio say it was relatively close — Golden Gate and Scott. (Another “unfortunately”, the Twilio robot only gives me the raw address. As a somewhat experienced driver I’m able to ballpark the intersection hearing an address, but many new drivers wouldn’t be able to determine the pickup point without a cross street.) The JCC is at California and Presidio. 10 minutes max, more like 5.

    The fascinating part about Cabulous is that technology alone does not make the system successful – it’s half technology and half driver initiative that makes a positive experience for both the driver and passenger. As I use the system more it becomes clear that significantly more onus is placed on the driver to provide a good experience for the passenger with Cabulous than with traditional dispatch (and even traditional computerized dispatch solutions like DDS).

    I now call all passengers as soon as I accept the hail. I call them to accomplish a few key goals:

    • Establish a personal relationship: I identify my name and taxi company affiliation and confirm that they hailed me using Cabulous.
    • Confirm pickup location: “Are you at 2238 Geary at Divisadero?”
    • Sometimes I’ll ask their destination if it’s a distant location.
    • Estimate arrival time and receive verbal commitment that party will wait for me. This is crucial. In this case, “I’m about 5-10 minutes away, are you willing to wait?”

    The amazing thing here is that humans are much more willing to wait if they are “in” the queue and have an accurate estimate of time. Humans get very angry when they are queueing for an indeterminate amount of time, worse if they’re queuing for a falsely reporting amount of time, and worst of all if they’re queuing for an unknown time and believe that the queuing/fulfillment system is flawed.

    In this case, the above phone call addresses all the above common queue concerns: yes, you’re “in the queue”; yes, there’s an accurate estimate of time; yes, there’s a fair and transparent queueing system (it’s simple: you’re next).

    I picked up the fare at Scott and Golden Gate, and saw an empty taxicab drive by. My passenger didn’t even consider hailing him, he knew I was on the way. He paid me well. $20

  • I had picked up another radio order, also from Cow Hollow, but this time heading downtown.

    I received the Cabulous hail just after the passenger entered the vehicle. I’m a good sport so I accepted to see where they were — maybe they’d be close to our destination. (Unfortunately, a driver must accept the order before the location is revealed.) To my surprise the order was downtown, perfect.

    I called the passenger to confirm his location and that he was indeed willing to wait for me to arrive. Again, this is essential for both parties to have comfort with the transaction. He was still in an office and would wait for me to get there before even going down. Nice, captive audiences are best. I didn’t ask destination.

    After dropping my fare off nearby I headed around the corner and stopped at the address given and gave him a quick call. He saw me (told me my cab number and color from his upstairs view) and said he’d be down in a few. 10 minutes later I wondered if I had made a mistake. Should I have taken him at his word? Did he just grab another cab? I called him back, “I’ll be down in 5. Going to SFO.” He knew the magic words. Nice trip to the airport, $40.

  • Last fare was a pickup near Geary and Presidio. A bit challenging as the woman didn’t give me her actual address, just saying she was near the Best Buy. Not very helpful. We eventually came up with Geary and Presidio as a meeting point. Worked great. Another $12.

  A total of just over $70 from Cabulous. Nice.

As part of my ongoing work with Cabulous, John Wolpert (Founder and CEO) and I had great fun doing a radio interview about the Cabulous app on San Francisco’s KPOO 89.5 FM. Harrison Chastang was our host.

It was great to see the KPOO studios, comfortably nested in a nice office near Geary and Divis.

Listen to the interview here:
Cabulous Interview on 89.5 FM KPOO San Francisco

I drove last Saturday and helped with an early beta test. John taped the first successful Cabulous hail:

A few weeks back, Cabulous had nice coverage on the old fashioned TV tubes:

Link – more info on Cabulous including a live demo of the app in use.

San Francisco Taxi with Photoshopped Blue Angels in Sky

It’s been a long time since I’ve taxi blogged.

I drove last Saturday for the first time in a few weeks. I’ve been working dispatch phones and doing VidSF work instead of driving over the past few weeks.

Novel-length post after the break.

• I love the feeling of getting back on the road after such a long time off driving. The routine of adjusting my mirrors, seat, radio (yes, NPR), dispatch radio, logging into the VeriFone, all while driving down Selby Street on my way to the Mission to start hunting for early weekend fares (or the super late-night drunks). Paradise.
• This past weekend was so incredibly packed with events that it was tough to get a car. The cashier had vancab available. Not my favorite vehicle (that’d be the indisputable champion Toyota Camry Hybrid followed closely by the Ford Escape Hybrid), but I’ve logged so many hours with Chrysler’s Dodge Caravan that I’ve come to embrace its shortcomings, such as the notoriously frustrating sliding door handle. Businessmen and grandmothers alike scorn this poorly designed lever. Daimler surely had no say on this one.
• I drove around for at least a half-hour before finding my first fare — a radio call from a lower Pac Heights hotel. I was surprised to find a very young Asian woman waiting for me. She quickly jumped in the cab and handed me a Google Maps itinerary. She was heading out to Visitacion Valley to take her SATs.

  As we flew down Gough to the 101 I thought back to my trip to take my SATs. How did I get there? What was I thinking? What was I listening to? 1989 Honda Accord, how much I hadn’t prepared, NPR’s Weekend Edition. I had an odd satisfaction knowing my fare would also have echoes of Scott Simon while filling in bubbles.

  I was surprised at the minivan traffic congestion as we neared Phillip Burton High School. I guess parents want to drive their kids to life-changing events, not wanting to risk Muni. I wanted to tell her she’ll do great and get a 1600, but I realized that they don’t score like that anymore and I felt old.

• Many dozens of minutes later I found a gaggle of male yuppies at Union and Larkin heading to the President’s Cup at Harding Park. I started to appreciate the vancab — room for 6 with luggage.

  I over’ed the dispatcher, Larry, to see if he knew the approved drop point. Working the dispatch phones earlier in the week I remembered the SFMTA’s DPT had planned out approved drop points. Larry gave me his best guess for cross streets and I plotted a course in my head. I love the fog in the Sunset on a weekend morning.

  As we approached the park I saw an armada of tiny, blue, three-wheeled vehicles. Gosh, I thought, my DPT friends from the SFMTA will surely be glad to see me and my passengers, especially now that San Francisco taxis are regulated under the same agency. I’m diligently performing my duties as an essential part of our City’s diverse transportation infrastructure.

  To my surprise, or maybe not, my DPT friends were not friendly, nor did they successfully direct me to a designated zone for dropping off my passengers. The first DPT officer waved me forward out of annoyance as I slowed to ask where I should drop, as did the second. Unfortunately, this process continued until I was about to clear any reasonable walking distance for my passengers. I was unable to do a u-turn because of the concrete median on Lake Merced Blvd, and the street had no shoulder. As traffic flows very quickly around tight curves, I did not feel it prudent to stop in a thru-lane.

  I was thus left with no other alternative than to pull perpendicularly into an exit-only curb-cut. As my passengers paid and exited the vehicle (at a reasonably quick pace given the fast card processing magic of VeriFone Transportation Systems) DPT officers approached me from all sides and started to yell. Oh my, a “SPECIAL” Muni shuttle, with no passengers on board (is that what “SPECIAL” means?) was approaching the exit-only curb-cut at a deadly 2 miles per hour, striking fear in the hearts of parking enforcement professionals in the immediate area.

  Look, SFMTA, let’s make a deal here. If you bank the City $495,533,925 from a transferable medallion scheme, can you use a small portion of that to actually administer the entity from which that revenue is generated? Specifically, please plan for drop-off and pickup points for taxis and inform your salaried employees of these plans. It will make the lives of your residents, taxi drivers and dispatchers much easier. Thanks.

• I picked up a fare from California and Polk heading to Noe Valley. White female, mid-30′s, eccentric in dress and speech. She jumped in the front seat, presumably as a silent protest against Chrysler’s sliding door handle design, and started a conversation about her friend in her late 40′s who decided against better judgment to embark on a career change to become an MD. Her friend will in her late 50′s before practicing. Wow.
• My vancab scored me a number of fares for which I’d otherwise be ineligible had I been driving my favorite sedan hybrid. Yes, the math usually works out such that despite gas savings on the hybrids, I’d make more money with a vancab, especially on the weekends because of the group fares. (And yes, I’m spelling vancab as one word. Deal with it.)
• On the way back from an airport run I scored thanks to the vancab, I picked up an RV park call. For the uninitiated, it’s near Candlestick Park on the way back from SFO. Nirvina in cab-land is scoring a 3rd and Gilman returning. (It’s called as 3rd and Gilman on the radio.)

  I arrived to find an older German couple. They had just picked up the rental RV and were heading to the Wharf to meet up with the kids. Herr Doctor and wife hadn’t realized that everyone else in the Bay Area was also trying to head up to the piers at the exact same time.

  My previous fare had a good chuckle on the way out to SFO. He had asked where all those heading north into the City would park. I joked that they were already parked on the 101. Ha! This didn’t seem nearly as funny heading inbound with my new deutschen frienden.

  I was impressed by my ability to bypass traffic. I headed inbound from Candlestick on Bayshore, jumped on 101 which flowed okay between Army and the underused 7th Street off-ramp. We headed up 7th to Leave, then Hyde. Had it been a race, I would have won.

  Herr Doctor gave me a $10 tip on a $22 fare. Danke schoen.

• Around 1pm we passed a supersaturation threshold where overall demand for taxis significantly outstripped supply.* As I’ve written before on this blog, I have a split personality on this issue. It’s bliss from the perspective of my personal earnings and fare-induced highs, but the palpable frustration from potential taxicab customers tempers my mood.

  It’s grossly irresponsible for the United State’s second most dense city to have such poor peak-time point-to-point transportation solutions. Unfortunately, SFMTA’s transferable medallion scheme will not address this service and security issue. For shame.

• *Caveat: A predictable and frustrating phenomenon occurs with geographically concentrated events such as Fleet Week. Immediately approaching (~30 min pre) and just after the beginning (~15 min post) the majority of fares are heading toward the geographically concentrated event, such as the Marina or Fish Wharf in this case, resulting in hundreds of taxis stuck in traffic as tourists circle for parking that isn’t there.

  If one was to look at raw analytics of demand vs. available taxicabs at times like these, you’d see a very odd result: perhaps 25-50% of the on-road fleet is vacant while there is demand for 125%+ of the fleet size. Taxi fleet efficiency alone is an incredibly convincing argument for a congestion charge, which the SFCTA is diligently pursuing to the best of its abilities.

  I encountered a few empty cabs who refused to take passengers to the Marina. This is, of course, de jure illegal, but very rational behavior on the part of the cab driver. I took 3 fares to the Marina in the course of two hours and spent 15+ minutes each time trying to battle traffic back to find fares. I could have earned double if I implemented this illegal policy. What would you do if you had to pay rent?

• During this supersaturation period I picked up a fare that, thank heavens, wasn’t heading toward the Marina.

  A very stressed woman in formal attire was heading back to her downtown hotel from a church in Pac Heights to pickup the ring for a wedding that was to start in 15 minutes.

  We flew inbound on California as we discussed my interest-level to wait for her to fetch the ring from her hotel and return. I was frank in explaining that it is not in my financial interest to wait for her to get her ring, but, of course, I’d be happy to do that for her.

  The City and County of San Francisco’s Department of Weights and Measures calibrates the meter on behalf of the SFMTA to register $.50 per minute = $30 per hour for wait time. However, in a period of supersaturation I can get another flag drop and earn ~$60/hr. (Keep in mind this is revenue, not profit, as it does not include my costs for the vehicle, medallion rental/lease, gasoline, etc.) Sure enough, while waiting for her return at the hotel on Nob Hill I had to fight off a European backpacker knocking on my window for a cab, frustrated at my denial to provide him with transportation solutions.

  We flew back even faster on Pine and scored all greens from Pine/Mason to Pine/Steiner. Passing thru Van Ness, Franklin and Gough on a green is rare enough, and then to jump on the outbound Pine green wave starting at Octavia is a very improbable occurrence. (Ask my transportation planning friends at the SFCTA.) Luck was on her side.

  She gave me $30 for a $14 fare. Generous, yes, and also a prime example of price variance during fixed supply. While not “fair” per se, it’d sure be market efficient if there was an easier way of determining the price premium a potential fare was willing to pay during periods of supersaturation.

  If only there was a way to know one’s desire to pay a premium before engaging in the transaction. Hint, hint.

I happened to be driving past City Hall a few minutes ago and caught sight of the MV-1 manufactured by Vehicle Production Group.

I was able to speak with John Gaydash a former GM executive.

Here are the important details:

• Given its pricing and options, the vehicle is intended to compete directly with ramp (disabled) taxi vans, not regular cabs.
• Production cost should be less than $40k
• Expected MPG of 17 city 22 highway (not officially EPA rated yet)
• Based on a V6 GM truck engine of some sort
• Understandably, John et al. are hitting up City Halls across the country to get their regulatory foot in the door. If they can get municipalities to code this as standard disable cab equipment they’re looking at some real cash.
• This will be the only built-for-purpose taxicab in the North American market.

Thanks John and the VPG crew for stopping by SF!

• Click here for the full flickr photo set.
• Link to VPG’s site

San Francisco’s Municipal Transportation Agency absorbs the Taxi Commission in March, but SFMTA Chief Nathaniel Ford says progress will be slow.

I wasn’t so sure that we needed another street closure, especially on a Sunday when so many tourists rely on the Embarcadero to come downtown or to the piers to spend money in our City.

So I’ll admit I was surprised to find so many people participating in the second iteration of the Mayor’s “Sunday Streets” program when I went out yesterday to shoot this quick story. I wasn’t surprised, however, to find folks in their cars a bit peeved about the closure.

As I concluded in the piece, it’s a tough balance to meet the needs of all transportation modes in a shared City.

I’m happy that the City was able to pull this off without too many problems. I’ll be interested to see what happens next year — will they do it again? Will they extend the hours? Will they perhaps have better signage warning incoming visitors and regulars to avoid the Embarcadero?

It’s rather long, and it’s rather boring unless you’re involved with the industry, but my goal was to be as objective as possible in presenting everyone’s viewpoints.