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Hell hath no fury like a cab driver handed an American Express card. Technically-speaking, cabbies are supposed to allow payment with credit card; however, we suspect that, technically-speaking, many of you out there have gotten into arguments - or have been flat-out refused a ride - because you tried to pay with plastic. But taxicab travel is set to improve immediately now that New York-based Creative Mobile Technologies and Chicago's Taxi Medallion Management, home of the 2,600 cars of the Yellow, Checker, and Blue Diamond fleets, are beginning to install touch-screens as part of a ten-year deal signed last December.
The touch-screens, which are currently in thirty cabs and will come to an additional 760 vehicles next month, allow passengers to swipe their credit cards from the comfort of the backseat. Passengers can also follow their trip via Google Maps, and eventually there will be additional shiny things, such as news, entertainment, and restaurant listings. And if you like advertisements, you're in luck, because CMT is providing the touch-screens free of charge in exchange for rights to ad revenue.
The reasons for cabbies' reluctance to accept credit is clear: 5% of the fare gets taken by the credit card company. But according to a study by Visa, people paying with credit cards tip significantly more, a robust 22% as opposed to the 15% average that cash customers shell out. Sure, there seems to be a glaring conflict of interest in a study about the benefits of using credit cards conducted by a credit card company, but the increased gratuity seems reasonable, especially considering the touch-screens' built-in tip calculators. [Tribune]
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It really sucks that the credit card gets 5%, but if I were a taxi driver, I'd feel a lot safer driving around with a box full of credit card receipts than a lot of cash that attracts robbers.
I've been on the receiving end of the wrath of a taxi driver who didn't want to take my card. Not fun.
For as much sh-t you have to go through to get a driver to actually run a credit card, I'm suprised that people would tip more when using one.
On a couple of occasions I've basically received a free ride because I didn't have much cash and they didn't want to run my card. "Basically" because they took the little cash that I did have.
The Visa study looked at the difference in tipping on credit card v. cash purchases after the touch-screens were introduced in NY last year. I believe you're exactly right: having the cab driver run your card - which takes forever and a day, if you're lucky enough to get them to do so in the first place - very well might lead to lower tips. On the other hand, swiping yourself in the backseat - you're more in control AND it's apparently much faster - very well might lead to larger tips. Seems to make some degree of intuitive sense.
Thanks for the clarification. In that case, I can definitely see tipping more if it only takes a few seconds like the machines in cabs in NYC.
i once had a $15 cab fare, and only had my credit card and $5 in my wallet. the cabbie said he'd rather take the $5. Deal.
I think anyone who's job requires tips prefers cash tips. That way they can report a standard tip (e.g. 15%) for tax purposes, and then keep the extra tax-free. Anyone know if this applies to taxi drivers, and what the usual percentage is that they report?
I remember a night last year when I belatedly realized my ATM card was expired (when the ATM refused to give me money because said card was expired). I had other credit cards, but no way to get cash as I never bother setting up PINs to get cash from my actual credit cards. I had to find a cabbie that would take credit so I could get home to Wicker Park from Lakeview at 2am (or so). I think I only had to go through 2 of them. It's amazing how many cabbies have "broken" credit cards machines.
It will make things much easier if most cabbies take cards, since cab rides are the main reason I carry as much cash as I do.
While it would definitely make it easier if most cabbies took cards, the total number of cabbies in Chicago is around 6,700 (as opposed to the 2,600 cabs involved in this contract). But, hey, it's a start.
I've used this system in New York. It Rocks! Nice and simple, fast, and you get a receipt each time.
You can play with the display, news, weather, maps, etc. And turn off the sound on the ads if you so desire!
All good, all day long.
You would think some cabbies would actually prefer the safety not carrying large amounts of cash and the convenience of not having to make change. But damn do they hate it when you try and pay with a credit card. Maybe somebody should charter a fleet of card-only cabs, clearly labeled as such and let the market decide.
Being a cabbie is one of the shittiest jobs out there. The taxi company is charging you to work, taking a cut of your pay and you're paying most if not all the upkeep on the cab. The limited number of medallions basically lets cab companies run little serfdoms. Why do you think so many recent immigrants take the job? Coming from Jordan or Ukraine or Yemen it's a step up if anything. The cab companies are as crooked as the day is long and most of these guys are pulling 12 hour shifts to make just barely minimum wage.
The credit card is convenient, but it's also another way to cut into the cab driver's earnings.
Reform the medallion system, regulate the owner operator structures and how much they can charge for shifts/rentals, that would put more money in the pocket of the guy actually driving the hack. Stop police harassment (the city loves to shakedown drivers, since companies might actually fight back) as well.
And give me a pony while you're at it.
My cousin drove a cab for 10 years. He liked the work for some crazy Travis Bickle reason. Tip your cabbie well.
I was in one of these cabs the other day. I asked if I could use it, and the cabbie told me it was broken. The more things change...