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decades ago. Though some of the industry’s biggest problems can be solved with better management and a clean slate of rules, the time has come for changing the whole taxi business model. Cab companies aren’t going to like it because under the existing system, they’re making plenty of money. Taxi company books aren’t open to the public, but it doesn’t take a CPA to figure out that cab companies are a lucrative business—if you’re an owner, not a driver. Last year, cab companies took passengers on more than 25 million rides. Drivers collected an average $13.50 a trip. Wage and fuel costs are variable by company, but most pay employees around minimum wage. Some companies split the cost of fuel with drivers, encouraging them to drive more economically. Some cabs use alternative fuels, skewing the average fuel cost. Like most businesses, cab companies have their share of overhead, insurance, legal costs, etc. | 23 MAY 2011 | But that $337 million revenue pays for an awful lot of those expenses. Las Vegas is one of a few big cities nationwide that uses the regulated taxicab industry model. In most cities, companies lease cabs to independent contractors who benefit by working quickly and efficiently. An extreme makeover of the taxi industry would have to be generated at the legislative level, even though Clark County is the only place where the Nevada Taxicab Authority has any jurisdiction whatsoever. The Nevada Transportation Authority, which regulates the state’s limousines, buses, towing and moving van companies, oversees cabs in the state’s other counties. Vocal critics of the system say there will never be an overhaul of taxi regulation because cab company executives donate to legislative campaigns to maintain the status quo. But status quo for the cab industry is a bad thing for the riding public, which often has a hard time getting a cab to show up at a residence when there are more lucrative customers to serve on the Strip and at the airport. A deregulated cab industry would encourage more competitive pricing. Companies would have to bid for the right to pick up at McCarran and the Convention Center. And resorts might want to have exclusive contracts with the best cab companies. Regulators would then be in charge of enforcing some crucial rules of operation and not get bogged down in monthly fights over cab allocations for special events. Las Vegas is the greatest resort destination in the world. It deserves the best taxi service in the world. The only way to get that is to fix an industry that has been broken for years. 29 LEILA NAVIDI