Cab Driver

If you want the real scoop of what’s going on in this city, or for this matter any city, take a drive in a cab. These guys and a few gals that make a living challenging the roads and traffic throughout the “Great Land’s” crowded streets and avenues seem to be up to speed with current affairs at hand. And most cabs are equipped with modern day hi-tech gizmos, like computers and GPS dispatch systems. So besides getting up to speed with local and national politics, I can usually find out what is wrong with my wife’s computer. I never have a problem with my laptop, but my wife’s is always doing something weird after she visits that HotSpace fantasyland. And one cab guy gave me a lesson on how to use a GPS. So the other day while enjoying a ride to the airport that is still named after Ted but not for long, I inquired about this “deregulation” interest that will be put up for a vote in the near future. It goes like this. Imad has been in Anchorage for 10-years by now. He is originally from India, where he learned how to drive a cab. So I would say he is well qualified to take that experience over to this country and carve out a livelihood. He also practiced very good grammar – English that is – and was very knowledgeable about Alaskan facts. Like the height of Mt. Denali and how many years Kikan Randall has tried to win a gold medal. So his big American dream was to open up his own cab company. Not big, but maybe one or two cabs to service the cab crazy public. He explains to me that he has a wife and a kid in high school. He rents a modest townhouse and has a somewhat comfortable living but no extras. He works 7 days a week. Because the cab industry is now regulated, it means only so many permits. A cab must have a permit from the municipality in efforts to operate. To date, there exists only 165 permits in Anchorage. These now precious pieces of paper were purchased many years ago for about 20-dollars. So Imad must rent a permit from a permit owner, which in his case the permit holder also supplies the cab. Even though there are many “Yellow” cabs buzzing around town, “Yellow” is just a common dispatcher that finds work for the permit holders, in this case, Imad the permit leaser. The cabs and permits are under private ownership that has nothing to do with the “Yellow”. Now the daily rate to rent a permit is $85 dollars for a 12-hour day, as the permit is leased to another driver for the night shift. Now Imad must also fill the gas tank at the end of the day and clean the rented cab, along with providing his own liability insurance. So he estimates that he must make at least $120-dollars early on in efforts to start making money for himself. In practice, that accounts for 7 hours of the workday on a good day, leaving 4 hours left to pull in a wage and 1 hour for the turnover prep work. And since the permit holders like long-term operators, if Imad wants to take a day off, he still must pay for the permit! That includes taking off a sick day also. Now Imad goes into great detail about the supply and demand theory behind the cab industry. He laughs when the subject turns to the entrepreneur system here in the states. Like what is free-enterprise all about? And what makes matters worse off, the permit holders’ play games with the renters, like selling out to the highest bidder. Imad tells me that the guy that owns the permit he works under has 4 permits under his name and lives in a mansion down in Kenai. Wow, a quick calculation pins this guy’s annual income at close to 250 grand! And Imad makes a pittance 10 percent of that take! Now no wonder “deregulation” is being bombarded by false claims, as those in the “own” have a lot to loose - like maybe going back to work for a living. But according to Imad, it all works on the supply and demand theory. More permits are needed, as more cabs are needed. And the only way to do this fairly is through deregulation. Sure there will commence a frenzy to get a permit, but over-saturation will be but a short- term inconvenience to those who for too many years have controlled this industry. In the end they will still enjoy the benefits of being a permit owner, along with a little competition. So I must agree with Imad, as I am convinced that deregulation is the way too go on this matter. Really, this soft-spoken articulate guy could have been a professor of economics in my book. He knows that it will cause a few ripples in the map of wealth, but in the end it will regulate some of that wealth, and pass some of it around. So, for those not in the know, it is time to “deregulate” the cab industry permitting so guys like Imad can be “I glad” for a change and maybe have that American dream of house ownership a reality instead of yet another rental agreement to contend with in efforts to enjoy life, liberty and that pursuit of happiness. Vote for “DEREGULATION” when it comes to a voting booth near you.

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