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HomeMy WebLinkAboutAgenda Report - April 7, 1993 (109)CITY COUNCIL MEETING April 7, 1993 CONCERN REPRESSED OVER THE NEED FOR TWO CAS COMPANIES IN LODI CC -16 CC -50(b) Patricia Now:, Stockton Intertrans Corporation, dba, Yellow Cab Company, 206 North Sutter Street, Stockton, questioned the necessity of two cab companies operating in the City of Lodi and wondered what could be done about Super Cab's operation in Lodi. The matter will come before the City Council some time in May and the Mayor directed the City Clerk to notify both companies of the meeting date. STOCKTON INTERTRANS CORPORATION 206 North Sutter Street Stockton. CA 95202 Telephone (209)462-8700 April 7. 1993 The City Council. City of Lodi Re: Two Cab cor_.tenie4 in Loci STOCKTON INTERTRANS CORPORATION 206 North Sutter Street Stockton. CA 95202 Telephone (209)462-8700 December 17. 1992 Ms. Alice Reimche City Clerk City of Lodi 221 West Pine Street Lodi. California 95241-1910 Re: Lodi City Counsel approval to license to Rio Vista Cab Company Dee.- Ms. Reimche: It has come to the attention of Stockton Intertrans Corporation. dba Yellow Cab. that on Wednesday. December 16. 1992. that the Lodi City Counsel approved Rio Vista Cab Company's application to operate within the City of Lodi. It is also our company's understanding that when the City Counsel reviews an application of this sort, various criteria. including but not limited to. the "need" of services to be rendered. are taken into consideration. Based on the "need" factor alone. Stockton Intertrans Corporation. dba Yellow Cab, would appreciate your consideration on our experiences in the City of Lodi. over the past three months of operation. c3t w[• Japrovc tc Oi.(-ate in the City of Lcb: cn September 16, 1992. At that time the former cab company ceased operation for various reasons. Shortly thereafter. our Yellow Cabs started rolling in Lodi. During the first six weeks it was necessary to subsidize the drivers by 50 to 75Z in Lodi. due to the limited number of fares and the general Lodi's population's past experiences with the former cab company. However. over the past six weeks. the Yellow Cab drivers have been at least breaking even or making small amounts of money on most days. Our logs demonstrate an average of approximately 50 fares. per twenty four hours. over the past two weeks. with an average fare of approximately $3.50. Out of their gross. drivers must pay their gas fees and line fees. leaving approximately $80-$110.00\day to be split between two drivers. (Yellow Cab drivers continue to be subsidized in the amount of 317. over the Stockton area drivers. due to current rate of fares.) During the initial time of operation. the City of Lodi demonstrated a need for only one cab. however over the past few weeks we have seen some occasional periods when a second cab was needed for a limited time. Usually this occurs only when a passenger needs to be taken out of town and\or needs the use of the cab for an extended period of Page 2 of 2 time. However. at this time the necessity of a furl time second Yellow Cab is not seen as necessary. nor is the need of a second company. Yellow Cab is currently in the process of initiating a costly public relations and advertising campaign in Lodi in order to increase use and viability in Lndi. however if we are going to be competing against other companies. when there is hardly sufficient business for one company of this type. we question the need for such a campaign at this time. as if the current Yellow Cab income is reduced by even 257.. the outcome to both companies could be disastrous. and Lodi could find itself with no service or back to the type of service prior to approving Yellow Cab. especially when one considers the current and anticipated cost of liability insurance. Based on our prior research. Yellow Cab was in a position to invest the funds necessary in insure continued operation and growth in the Lodi service area. however the research was based on only one company in Lodi. It may be necessary now to reevaluate this research and plan of operation. It is not the contention of Yellow Cab that we be granted a exclusive right to the City of Lodi. it is our contention that you need to consider. at this time. the "need" of a second company of this type. as well as the possible consequences that are likely to occur should the current level of use and income be split between two companies. This is also something that the Rio Vista Cab Company may need to evaluate and reconsider their plan of operation. We respectfully submit these items above for your consideration as well as the City Council's consideration prior to finalizing Rio Vista Cab Cor..c,ony's license.. Thank you in advance for you :ime on this matter. I am sure your decision on this matter wil' be advantageous to all concerned. General Manager cc: Lodi City Council Board Members Caroline Bowman. President YELLOW CAB 333 -TAXI 333-8294 • • STOCKTON INTERTRANS CORPORATION 206 North Sutter Street Stockton. CA 95202 Telephone (209)462-8700 December 17. 1992 ll(2- moo Ms. Alice Reimche City Clerk City of Lodi 221 West Pine Street Lodi. California 95241-1910 Re: Lodi City Counsel approval to license to Rio Vista Cab Company mbar Ms. Reimche: It has come to t`.e attention of Stoclton Intertrans Corporation. dba Yellow Cab, that on Wednesday, December 16. 1992, that the Lodi City Counsel approved Rio Vista Cab Company's application to operate within the City of Lodi. It is also our company's understanding that when the City Counsel reviews an application of this sort. various criteria. including but not limited to. the "need" of services to be rendered. are taken into consideration. Rased on the "need" factor alone. Stockton Intertrans Corporation, dha YF•llow Cah, would apore(i.71te your consideration on our experiences in the City of Lodi, over the past three months of operation. Cab wac- appro.cr' to oprrate in the City of Lod; on September 16. 1992. At tha: time the former cab company ceased operation for various reasons. Shortly thereafter. our Yellow Cabs started rolling in Lodi. During the first six weeks it was necessary to subsidize the drivers by 50 to 75% in Lodi. due to the limited number of fares and the general Lodi's population's past experiences with the former cab company. However. over the past six weeks. the Yellow Cab drivers have been at least breaking even or making small amounts of money on most days. Our logs demonstrate an average of approximately 50 fares. per twenty four hours. over the past two weeks, with an average fare of approximately $3.50. Out of their gross. drivers must pay their ga. fees and line fees. leaving approximately $80-$110.00\day to be split between two drivers. (Yellow Cab drivers continue to be subsidized in the amount of 31/ over the Stockton area drivers. due to current rate of fares.) During the initial time of operation, the City of Lodi demonstrated a need for only one cab. however ever the past few weeks we have seen some occasional periods when a s'cnnd cab was needed for a limited time. Usually this occurs only when a passenger needs to be taken out of town and\or needs the usr, of the cab for an extended period of Page 2 of 2 time. However. at this time the necessity of a fu71 time second Yellow Cab is not seen as necessary. nor is the need of a second company. Yellow Cab is currently in the process of initiating a costly public relations and advertising campaign in Lodi in order to increase use and viability in Lodi. however if we are going to be competing against other companies. when there is hardly sufficient business for one company of this type. we question the need for su:h a campaign at this time. as if the current Yellow Cab income is reduced by even 252. the outcome to both companies could be disastrous. and Lodi could find itself with no service or back to the type of service prior to .,proving Yellow Cab. especially when one considers the current and anticipated cost of liability insurance. Based on our prior research. Yellow Cab was in a position to invest the funds necessary in insure continued operation and growth in the Lodi service area. however the research was based on only one company in Lodi. It may be necessary now to reevaluate this research and plan of operation. It is not the contention of Yellow Cab that we be granted a exclusive right to the City of Lodi. it is our contention that you need to consider. at this time. the "need" of a second company of this type. as well as the possible consequences that are likely to occur should the current level of use and income be split between two companies. This is also something that the Rio Vista Cab Company may need to evaluate and reconsider their plan of operation. We respectfully submit these items above for your consideration as well as the City Council's consideration prior t9 finalizing Rio Vista Cab Company's license. -- Thank you in advance for you time on this matter. I am sure your decision on this matter will be advantageous to all concerned. General Manager cc: Lodi City Council Board Members Caroline Bowman. President