What happened to the CAB SERVICE we loved?
It was the culmination of many, many factors. Essentially; PennDOT killed it.
But don't worry: we still provide service to PHL, Newark, JFK, and all airports in the Northeast!
In fact, we've actually upgraded. Discover all the new advantages of booking with us here.
01
STRANGLED by penndot
END RESULT: $188,000 in Lost Revenue and CHOKED by Stagnant Rates
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We've asked for a rate increase every year; every year we were denied. The LAST time our rates were raised was 2005! Even then it only went from $25 per passenger to $25.50.
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In 2008 they did raise the subsidization rate; for EVERY trip BUT airport trips.
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From an email in June 2017 from PennDOT they stated that "we do not limit trip purpose" but also that "the airport service is a luxury."
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In 2014, they mandated the use of a new software program that was not compatible with our business. That resulted in a loss in revenue of $170,000 per year. It was NOT a "local decision" as they state. It was because the software they mandated we use was not compatible with our business model.
02
ROVER (KRAPFS)
END RESULT:
$51,000 EXPENSE INCREASE
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When PENNDOT decided that ALL of the calls for Senior Shared Ride had to go through ROVER, things got messy.
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Seniors were confused about who to call. ROVER had much longer hold times, and the call center was only open from 7-4 every day and never on the weekends.
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While this is not ROVERS' fault: they charged us to take the calls we used to take ourselves (and still do since they are transferred to us.)
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At first, this was 7% of our total Shared Ride Revenue, or about $26,000 a year.
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In 2018, ROVER said it was costing them more than they thought to take our calls. They stood firm on an increase to 13%, or about $51,000 a year.
03
CHESTER COUNTY POLITICS
END RESULT: $27,000 EXPENSE INCREASE
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INSURANCE: Chester County mandated that we carry a $1 MIllion Dollar Policy, which is insanity. The minimum for cab companies in PA is $35,000.
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As a result, the insurance on each of our cabs was about $3,000 more per car than it would/should have been if Chester County didn't demand such an overabundance of coverage.
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We asked them to reduce it many, many times; we were denied.
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Math:
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9 Cabs x $3,000 a year overage= $27,000 in excess insurance per year above State Law minimums.
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