by Bruce Schaller and Gorman Gilbert

New York City taxicab issues have fascinated the public while bedeviling politicians and policy-makers for decades. The fascination stems from the combination of the ubiquity of yellow cabs in the city's core areas, the many tales of woe experienced by passengers, and the belief of many that the taxi industry represents a monopoly run amok. This three-part series uses recently compiled information to provide a factual basis for examining service issues and possible solutions. This first paper looks at the key to service quality–the drivers–and shows how service problems stem from inadequate wages and difficult working conditions. The next paper evaluates the widespread notion that the medallion system is the root of service problems. It finds that the growth of taxicab leasing over the last 15 years has had a far more pernicious effect on service quality than has the medallion system. The third and final paper appraises nine strategies for improving service, evaluating the efficacy of city regulation and the potential for market-based policies.

http://www.schallerconsult.com/taxi/taxi1.htm