Using Taxi Cards in Subsidized Taxi Programs What role should new technology play in the context of the ailing taxi industry?

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1 International Conference on Demand- Responsive Transportation Using Taxi Cards in Subsidized Taxi Programs What role should new technology play in the context of the ailing taxi industry? A Presentation by Terra Curtis September 27, 2016

2 How Taxi Vouchers Work from a Cash Flow Perspective 2

3 Taxi Cards: A Better Way? Replace paper with digital solution Like a bank debit card Put money in an account Charge taxi rides Used for ADA supplemental taxi subsidy programs in San Francisco, Los Angeles, Chicago, and other cities Source: SFCTA 3

4 Benefits Customers No more paper to carry Opportunity to reload value online Nothing to print, mail, or keep safe Drivers Easier payment processing Companies Simpler invoicing Cities Fraud protection and automated trip validation Real-time record of trips Flexibility to change program rules Cooperation among cities 4

5 CASE STUDY Alameda County City-Based Taxi Subsidy Programs

6 Available Products & Vendors MJM Innovations CabConnect Pre-Paid Debit Cards Swipe technology Integration with PSP units (and meters) Vendor-provided hardware Vendor hardware integration with meter N/A Real-time Trip Data Integration with Eligibility Database Flywheel Integration 6

7 Available Products & Vendors Flywheel and TaxiOS Taxi hailing mobile app and fleet management software Source: Flywheel 7

8 Mixed Regulatory Environment Berkeley All taxis required to accept scrip Not required to accept credit cards Fremont No provision related to credit cards Hayward Recent revisions require credit card acceptance and centralized radio dispatch Oakland Required to accept credit cards Potentially will require trip data tracking Fleets with more than five vehicles required to have radio dispatch Region Clipper Card Updates, East Bay Paratransit fare payment 8

9 Taxi Market Considerations None of the taxi companies have payment devices compatible with either vendor s debit card products Facing challenges attracting/retaining drivers Lost business due to competition from TNCs Limited wheelchair accessibility 9

10 Benefits and Costs Estimated Annual Implementation Costs MJM: $128,434 CabConnect + Flywheel: $65,074 Costs and savings estimated over a 5-year period for both systems implemented in Hayward, Oakland, and Fremont Cost savings include reductions to printing/mailing and reduction to program misuse Outreach/communications costs not included (will remain the same) Potential Annual Cost Savings $64,150 10

11 What s happening now?

12 What is the role of technology in the context of the ailing taxi industry?

13 Thank You! Terra Curtis NELSON\NYGAARD CONSULTING ASSOCIATES 2016

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15 Marin s Paperless Voucher System 15

16 Available Products & Vendors MJM Debit card Payment processing hardware CabConnect Debit card Payment processing hardware smartphones (partnership with Flywheel) Used in San Francisco Source: MJM Innovations 16

17 Taxi Market Considerations Berkeley All taxis permitted in Berkeley required to accept scrip Five taxi companies service majority of trips, but many owner/operator companies Fremont One contracted provider Non-accessible, use mobile payment app Hayward One contracted provider with multiple business arms Enterprising owner, willing to work with programs but payment hardware not connected to meter, GPS Oakland Two contracted providers, using mobile payment app 17