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More transparency for cab companies
The Gazette Opinion Staff
Mar. 8, 2010 11:16 pm
It's time for Iowa City councilors to tighten regulation of a burgeoning taxicab industry.
Cabs are frequently used in this college town, and some operations have been playing fast and loose with their customers, charging fares that vary greatly from those they've filed with the city.
Complaints of gouging are commonplace - and recently were verified by a Gazette reporter.
We have no problem with Iowa City cab companies setting their own rates. As a business, they should have that right, and there is plenty of competition to keep those rates in check.
But the way it stands now, there's not enough regulation to ensure drivers stick to those rates on file. That should change.
City councilors should require cabs to post their rates and use a meter so customers can be sure they're being charged the proper fare.
Plenty of cities do the same. In fact, some, like Cedar Rapids and Des Moines, regulate the amount of money cab companies can charge.
Iowa City doesn't need to go that far, but it's clear that something must be done to stop fares that are anyone's guess. After all, don't most businesses post and honor their prices?
Nineteen cab companies operate more than 100 cabs in Iowa City, more than even larger cities such as Cedar Rapids and Des Moines. Four new companies and 28 cabs have been added in only the past few years.
Some cab owners and customers say that growth, combined with loose regulation, has led to abuse.
Iowa City currently requires cab companies to file their rates with the city, but not to post those rates in the cab.
Neither does the city require cabs to use meters, which would help customers make sure they're being charged a fair, consistent amount.
Without the meters and posted rates, it leaves a window open for unscrupulous drivers to change the rates to suit their mood.
Recently, a Gazette reporter conducted a spot check of 13 cab companies between midnight and 1 a.m. She found that only five of those companies' drivers quoted the same rate their companies had on file with the City Clerk's Office.
The rest quoted prices as high as $16 to $18 for rides that should have cost $9 to $12.
Yes, the city has complaint forms available for customers who feel they were treated unfairly, but few take the time to fill one out - if they even know they've been taken advantage of.
Usually, customers just pony up the fare without much thought - something unscrupulous cab companies and drivers know too well. It's time for the city to give customers the tools they need to protect themselves from price gouging.
Requiring meters and posted fares in cabs would reasonably protect customers looking for a ride from being taken for a ride. More transparency also could make for fairer competition.
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