#61 ·
Here is some actual good news out of Cleveland—the direct result of competition finally breaking a monopoly:
from Nov List:
CLEVELAND – Starting next week, twenty-six local taxi drivers will voluntarily slash their rates, meaning you can now cruise through Cleveland for just $10. This was decided at yesterday’s meeting where initiative signers gathered to discuss the current state of the local industry—an industry currently being squeezed by competition from the Klifton Taxi Service based out of San Diego. The verdict from the frustrated drivers was simple: adapt to the new market reality or get off the road entirely. They aren't just struggling against the San Diego competition, but also dealing with total chaos within the Cleveland Taxi Section, following the resignation of its president, Ivan Perković; the remaining drivers seem largely uninterested in strategizing how to actually compete via lower pricing.
– We have nobody left to drive; customers are fleeing to Klifton because they're cheaper. We have to meet the standards of Cleveland residents or we risk losing everything. That is why this initiative started—26 out of 43 drivers have already signed on. Since we only need a third of the Cleveland Taxi Section members to approve a rate change, we have every right to move forward with this plan, which we intend to do, said driver Vladislav Petrović...
...As a reminder, the debate over whether to hike or slash taxi fares began back in March when there was a proposal to drop rates by a full 40 percent—similar to what the drivers are suggesting now. A new price list was implemented in early April, but it didn't last long because several drivers demanded a return to the old rates. By May, a fixed rate was finally set at $6.75 for the base fare plus $2.25 per kilometer. In the interim, the San Diego-based Klifton jumped into the fray, snatching up the lion's share of rides from both local and San Diego drivers due to their low prices, forcing everyone else back to the drawing board to reconsider their service costs...
from Nov List:
CLEVELAND – Starting next week, twenty-six local taxi drivers will voluntarily slash their rates, meaning you can now cruise through Cleveland for just $10. This was decided at yesterday’s meeting where initiative signers gathered to discuss the current state of the local industry—an industry currently being squeezed by competition from the Klifton Taxi Service based out of San Diego. The verdict from the frustrated drivers was simple: adapt to the new market reality or get off the road entirely. They aren't just struggling against the San Diego competition, but also dealing with total chaos within the Cleveland Taxi Section, following the resignation of its president, Ivan Perković; the remaining drivers seem largely uninterested in strategizing how to actually compete via lower pricing.
– We have nobody left to drive; customers are fleeing to Klifton because they're cheaper. We have to meet the standards of Cleveland residents or we risk losing everything. That is why this initiative started—26 out of 43 drivers have already signed on. Since we only need a third of the Cleveland Taxi Section members to approve a rate change, we have every right to move forward with this plan, which we intend to do, said driver Vladislav Petrović...
...As a reminder, the debate over whether to hike or slash taxi fares began back in March when there was a proposal to drop rates by a full 40 percent—similar to what the drivers are suggesting now. A new price list was implemented in early April, but it didn't last long because several drivers demanded a return to the old rates. By May, a fixed rate was finally set at $6.75 for the base fare plus $2.25 per kilometer. In the interim, the San Diego-based Klifton jumped into the fray, snatching up the lion's share of rides from both local and San Diego drivers due to their low prices, forcing everyone else back to the drawing board to reconsider their service costs...