Crains New York - August 27, 2012 - (Page 10)

OPINION G Hail no to taxi protectionism overnment intervention in the marketplace often leads to solutions in search of a problem. That is not the case with the city’s outer-borough taxi plan. By decriminalizing the hailing of livery cars, the Bloomberg administration would give the rest of the city access to the reliability, safety and convenience offered by yellow taxis. The “green apple” cabs would be fitted with meters, GPS units and credit-card readers. That’s if the cars ever hit the streets. The taxi industry failed to use its clout to stop state legislators from legalizing livery hails. So it turned to the courts, hoping to find a legal loophole. Manhattan Supreme Court Judge Arthur Engoron produced one on Aug. 17, ruling the state law “null and void” because the City Council did not first issue a “home rule” message.The decision, which the administration is appealing, has blown a hole in the city budget because the statute allowed for the sale of 2,000 taxi medallions. That would have raised $1.46 billion over three years. The council should end the stalemate by passing its own version of the law. We’re not surprised by the taxi industry’s myopia. For years it has put the brakes on innovation. In the 1980s, yellow cab owners protested the switch to digital meters that began tracking mileage and ridership. In the 1990s, fleets fought the city’s rule requiring taxis to be replaced after three years. In the 2000s, they bellyached about the cost of installing creditcard machines. Drivers griped over GPS technology. Fortunately for the taxi industry, the city prevailed. Since all taxis became credit-card-compatible in 2008, ridership has increased 16%, to half a million trips a day. Revenue has jumped 52%. Around $7 million a day is now spent on taxis, more than half of that paid with plastic. It’s no wonder medallions have spiked in value, to more than $1 million. Drivers fear the influx of competition will cut into their market. It won’t: 97% of trips begin in Manhattan or at the airports, where the livery cabs will not be allowed to pick up. While fleet owners may not see the value in tapping a market that has operated in the shadows for years, others do. In June, the city received 19 responses from app makers interested in providing a mobile payment system. Many companies added features to their software that would use smartphone GPS technology to make it easier for cabbies to find fares—the kind of technology that could lure more drivers to the outer boroughs. The Taxi and Limousine Commission has said it will crown one app the winner. That would be an overreach. The response shows that entrepreneurs believe there is demand for their product. Better to set technical specs and allow any developer to sell its app. Let the market decide the winner. The resulting competition would spur industry innovation— so the Bloomberg administration doesn’t have to. CRAIN’S NEW YORK BUSINESS editor in chief Rance Crain publisher, vp Jill R. Kaplan EDITORIAL editor Glenn Coleman deputy managing editors Valerie Block, Erik Ipsen assistant managing editors Erik Engquist, Jeremy Smerd senior producer, news Elisabeth Butler Cordova news producer Lauren Elkies contributing editor Elaine Pofeldt columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Daniel Massey, Miriam Kreinin Souccar reporters Amanda Fung, Andrew J. Hawkins, Shane Dixon Kavanaugh, Adrianne Pasquarelli web reporter, producer Ian Thomas art director Steven Krupinski deputy art director Carolyn McClain staff photographer Buck Ennis copy desk chief Steve Noveck copy editor Thaddeus Rutkowski data editor Suzanne Panara assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern interns Emily Lundeen, Mary Shell ONLINE AND INTERACTIVE SERVICES general manager, online & e-commerce strategy Kira Bindrim senior web developer, interactive Chris O’Donnell ADVERTISING, MARKETING AND PRODUCTION advertising director Trish Henry senior account managers Irene Bar-Am, Courtney McCombs, Sheryl Rose, Suzanne Wilson account executive Jill Bottomley Kunkes sales coordinator Danielle Wiener newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) director, audience development Michael O’Connor senior marketing manager Catherine Schutten event producer Courtney Williams reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies TO SUBSCRIBE: For print and digital subscriptions or customer service, e-mail customerservice@crainsnewyork.com or call 877-824-9379 (in the U.S. and Canada) or 313-446-0450 (all other locations). $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print subscriptions with digital access. www.crainsnewyork.com/subscribe TO ADVERTISE: Contact Advertising Director Trish Henry at thenry@crainsnewyork.com or call 212-210-0711. www.crainsnewyork.com/advertise FOR INFORMATION ON OUR EVENTS: Contact Event Producer Courtney Williams at cwilliams@crainsnewyork.com or 212-210-0257. www.crainsnewyork.com/events TO CONTACT THE NEWSROOM: Outer-borough cabs would tap an unmet need CRAIN’S ONLINE POLL COMMENTS The breakfast clubbed istockphoto WHY SUCH LOPSIDED READER POLL RESULTS? Re the 77% “no” vote in last week’s online poll that asked, Should schools serve free breakfast in the classroom?: We can invest in breakfast for students now or find the money later for welfare, Medicaid, unemployment insurance or, worse yet, prisons. Starting out the day hungry is such a detriment to focusing one’s attention that anything we can do to help these children from impoverished households will be well worth the cost. What’s the big deal among the “no” crowd, anyway? Is it the act of serving food in the classroom? Or is it some resentment of the poor? Let’s invest in our future— our children and their future. Let’s develop a society that is compassionate and educated, too. —ed weiner ON LIES, DAMNED LIES AND STATISTICS Re Greg David’s Aug. 20 column (“Lies, damned lies, and jobless statistics”): In our report that he referred to, we made no claim that black unemployment is “soaring.” Rather, we highlighted the problem of long-term unemployment in the black community, a serious issue not just here but in the nation. We did in fact indicate that New York City is gaining jobs, and has recouped the number of private-sector jobs it lost during the recession. Further, we noted the paradox of high unemployment-rate numbers even as New York City gains jobs. Our finding that women did not fare as well as men during the city’s recovery is consistent with what economists from the Center for American Progress and the Institute for Women’s Policy Research have identified as a national trend. Our analysis did show that SHOULD THE CITY COUNCIL REQUIRE NYC SCHOOLS TO SERVE FREE BREAKFAST IN THE CLASSROOM? Yes. The program is free. Making it easier to get nutrition in the morning will improve kids’ grades. No. The food is already available in the cafeteria. This is just City Council political posturing. Date of poll: Aug. 22 the unemployment rate came down for many demographic groups in the city from 2009 to 2011; it just did not come down for all. Finally, we relied on the best available government data and painted the entire picture. Mr. David is critical of journalists for focusing more on unemployment numbers than job growth, but he would prefer to focus solely on job growth. That’s not the whole story, either. —michelle holder Senior labor market analyst Community Service Society of New York 711 Third Ave., New York, NY 10017-4036 editorial phone: 212.210.0277 fax 212.210.0799 Entire contents ©copyright 2012 Crain Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. 284 votes WHEN PIGS FLY It seems to be high season for political candidates saying stupid things on TV. Me? I’d vote for the candidate who says sincerely: “I really don’t know what to say about that. Let me dwell on it and perhaps I’ll be able give you an intelligent answer sometime. Just not now.” —tom (online commenter) PUBLISHED BY CRAIN COMMUNICATIONS INC. chairman Keith E. Crain president Rance Crain secretary Merrilee Crain treasurer Mary Kay Crain executive vp, operations William Morrow senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams vp/production, manufacturing David Kamis chief information officer Paul Dalpiaz founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) 23% Yes 77% No FOR THIS WEEK’S QUESTIONS: Go to www.crainsnewyork.com/poll to have your say. CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to letters@crainsnewyork.com. Send columns of 475 words or fewer to opinion@crainsnewyork.com. Please include the writer’s name, company, address and telephone number. 10 | Crain’s New York Business | August 27, 2012 http://www.crainsnewyork.com/subscribe http://www.crainsnewyork.com/advertise http://www.crainsnewyork.com/events http://www.crainsnewyork.com/poll

Table of Contents for the Digital Edition of Crains New York - August 27, 2012

Crains New York - August 27, 2012
Contents
In the Boroughs
In the Markets
The Insider
Real Estate Deals
Business People
Corporate Ladder
Opinion
Greg David
Small Business
From Around the City
Stats and the City
Classifieds
Source Lunch
Out and About
Snaps

Crains New York - August 27, 2012