Grupo Resilient International Inc (GRUI)

[WardOffMonkey]

Catty, my understanding is that the GPS issue is only the public face that is being put on the cabbie's resistance to the new system.

http://www.telematicsjournal.com/content/blogdetails/421
NY Taxi Driver Strike is Not Really About GPS
Author: David Alexander, Principal Analyst, Automotive Systems
Posted: 06.September.2007 09:58 PM

Some New York taxi drivers are striking to show their unhappiness with the new mandated GPS/credit card systems installed in their cabs. The stated concern appears on the surface to be one of privacy, and one of the large drivers unions is using this as a platform. The other large union however sees no such privacy issue and is not supporting the strike.

The system itself is a computer with a screen that the passenger can use to select information such as weather forecasts, restaurant details, and can follow the taxi’s route through the city. GPS provides the instantaneous position of the vehicle.

And of course there will be plenty of advertisements to entertain the captive audience in the back seat. There is a messaging system for the driver, and a credit card option that can process payments without needing the driver to do anything.

Some drivers have complained that the credit card processing clips about 5% off their income for fees, but they are missing the bigger picture that with credit cards (as demonstrated in many other industries) customers on average tip better and can spend more than just the cash they have on them. For taxi drivers that may mean more of the lucrative trips into the suburbs.

The NYC Taxi and Limousine Commission already require taxi drivers to submit paper records of the trips they make. One of the big advantages of the new system is that this chore is automated. As for privacy concerns, the system has been set up to prohibit information being reported when the cabs are off duty.

The real issue, as usual, is money. There is speculation that overcharging tourists by taking scenic routes will be a lot trickier if the passenger can see a real-time map, but that is reported somewhat tongue-in cheek. The real outrage is that the drivers are being made to pay for the installation and monthly operating costs while not sharing in the advertising revenue being generated.

And that is where the promoters of this new technology have erred. Had they developed their business model around capital funding recovered through advertising revenue, and maybe only passed on a nominal monthly operating fee, New York would have both happier cab drivers and passengers.

Privacy and the “Fear of GPS” is a red herring. It makes for a more dramatic story than “Cabbies Shortchanged by Big Business,” but GPS is not at fault here, and this is a non-story from the GPS perspective.