Fare Share Pilot Program

TLC Commission Hearing, 19th Floor New York, NY

October 15, 2015

1

Current Lease Cap Rule and Practice: Industry Impacts

Current Rules • TLC Rules require 12-hour

shifts and set maximum lease rates (lease caps) for each shift.

Challenges

• Today drivers report traveling back and forth to Manhattan during times of high passenger demand when rush hour surcharge is in effect.

• Lessors expressed frustration related to shift structures that do not capture the high-demand evening rush hours.

2

Fleet/Agent Locations

Current Shift Change Practice: Passenger Impacts

Low Occupancy Despite High Demand: Trip data indicate a significant dip in available taxicabs from 4 pm to 6 pm when drivers are changing shifts.

3

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

2,000

4,000

6,000

8,000

10,000

12,000

MO

N 1

2 AM

MO

N 6

AM

MO

N 1

2 PM

MO

N 6

PM

TUE

12 A

M

TUE

6 AM

TUE

12 P

M

TUE

6 PM

WED

12

AM

WED

6 A

M

WED

12

PM

WED

6 P

M

THU

12

AM

THU

6 A

M

THU

12

PM

THU

6 P

M

FRI 1

2 AM

FRI 6

AM

FRI 1

2 PM

FRI 6

PM

SAT

12 A

M

SAT

6 AM

SAT

12 P

M

SAT

6 PM

SUN

12

AM

SUN

6 A

M

SUN

12

PM

SUN

6 P

M

4P-6P

AVERAGE TAXIS ON ROAD

Fare Share Pilot Purpose

Provide more flexibility

Optimized shift times to increase driver income

Increased flexibility in leasing arrangements for lessors

Increased taxicab availability during the evening rush

4

Fare Share Split

65

35

Driver Fleet

• Drivers keep 65% of farebox • Drivers keep 100% of tips • Owner percentage includes

lease cost and credit card surcharge

5

Fare Split: The Math

• A fare-split of 35/65 was determined by dividing average lease caps by average farebox revenues

Average Lease Cap per Shift: $126 (incl. credit card surcharge)

÷

Average Farebox per Shift: $356 =

Lease Cap % of Farebox 35%

6

Potential Benefits for All

Lessor Benefits

• Ability to offer shifts drivers want;

• Ability to offer taxicabs to drivers during times of high passenger demand; and

• Ability to attract drivers with low-risk leases.

Driver Benefits

• Ability to drive a taxicab without risk they will be unable to make their lease payment on slow days;

• Improved shift times; • Improved shift change

operations; and • Increased number of

fares during peak time.

Passenger Benefits

• Greater availability of taxis during the 4pm to 6pm rush hour;

• Fewer taxis competing with other motorists to cross the East River bridges to do shift change during rush hour period.

7

Pilot Participation and Criteria

Criteria for Evaluation

• Driver and lessor satisfaction; • Changes in the number of completed shifts each day; • Taxicab availability by time of day; and • Changes to time needed to complete shift change.

8

Open to anyone who leases a taxicab on a daily or weekly basis

Questions?

9