By Liam Kennedy
Norman Buenvaentura stands beside his taxi. (Credit: Liam Kennedy)
New York City taxi drivers are feeling the squeeze, as their fares remain stagnant while prices for fuel, insurance and maintenance have skyrocketed.
It has been almost four years since the Taxi and Limousine Commission approved a rate hike, from $2.50 to $3 per trip and 50 cents to 70 cents per mile. That also included surge pricing for rush-hour and overnight trips as well as increases in surge and airport fares.
But since then, inflation is up nearly 15% according to the Bureau of Labor Statistics, with gasoline leading the way. A gallon of regular in New York City has risen 25%, to $4.37 now from $3.49 in December 2022, when the last fare hike went into effect.
Before ride-share companies like Uber entered the market, “we were able to make our money and make a living,” said Norman Buenaventura, a driver for 14 years. “For the last three years, I was physically struggling to pay our mortgage. Currently my bills each month can go as high as $9,000 after paying my bills, medallion and mortgage.”
According to Diego Taurus, a driver since 2014, cabbies are seeing their gas bills rise from approximately $380 to nearly $600 per month.
It’s not just gasoline. Last December, after a major insurer was declared insolvent, New York state officials announced that rates for cabs will rise by 25% over the next three years. This past year alone, New York City-mandated insurance has risen 14%, averaging around $6,725 for full coverage, and will rise an additional 11% next year.
Cira Angeles, co-founder and chief executive officer of L.A. Riverside Brokerage, which represents many major carriers, said that insurance rates are just catching up to reality.
“It’s been a 20-year cycle of companies coming in, going insolvent, and leaving because there wasn’t enough money in the system to cover the policies,” said Angeles.
Diego Taurus pays $1,200 a week to drive a Toyota Sienna with a taxi medallion. (Credit: Liam Kennedy)
To make ends meet, drivers must endure long hours and grueling work conditions. Taurus said that drivers often work days that stretch over 14 to 16 hours. This is despite a 2017 TLC rule designed to limit driving time to 10 hours a day, which only regulates time with passengers in the vehicle, not cruising time.
“I have to work 80 to 84 hours a week,” said Taurus. “We don’t get sick days, holidays or vacation … nothing.”
Raising fares is not an overnight process. Before adjusting driver pay, officials must consult with labor organizations and drivers to understand if a rate increase would negatively affect their business, according to Jason Kersten, press secretary for the TLC.
“Stable, predictable rates are one of the reasons many people prefer using taxis,” said Kersten.
To change fares, a proposal must be made by a TLC council member which would then initiate a review process and a commission vote. The last time fares were raised in 2022, the process took more than three months.
Rideshare companies such as Uber and Lyft, on the other hand, have their rates evaluated through an annual inflation adjustment, taking place in March. Last March, Uber and Lyft drivers received a 3.36% pay raise from a TLC program.
Tensions over the fares have become more acute since July, as three cab drivers have been found dead in their cabs due to medical reasons. Bhairavi Desai, executive director of the New York Taxi Workers Alliance, has attributed their deaths to their inability to take care of their health due to high costs and punishing workloads.
“We are supposed to work to live, not live to work,” Desai said. “But drivers like our deceased brothers work grueling days and nights. As trips shrink while costs grow, they’re left with little time to take care of themselves while they work longer and longer hours to try to make ends meet.”
Other costs are rising as well. Tire prices are nearly 30% higher than they were in March 2020, and taxi drivers often have to replace them every 18 months, as contrasted to regular drivers who usually replace them every five to six years.
Some drivers, like Peter Mwakajunda, are thinking about leaving the industry altogether. This is difficult for those who own their medallions, because the TLC imposes a series of rules and regulations on transferring the right to drive a cab in the city.
“I am also a chef, I could work two jobs that are also customer service and make ends meet,” said Mwakajunda. “If you look around, many of these guys are depressed, they are suffering.”
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Previously Published on columbianewsservice with Creative Commons License
Photo credit: Norman Buenvaentura stands beside his taxi. (Credit: Liam Kennedy)
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