Struggling taxi drivers get OK to raise rates
By Scott Ishikawa
Advertiser Transportation Writer
Higher taxi fares on O'ahu were approved yesterday, but some cab drivers say the hike will only help them break even.
Deborah Booker • The Honolulu Advertiser
"Every bit helps, but it's a struggle," said Ken Kim, a 19-year taxi driver who works for Sida of Hawai'i Inc. "With the high cost of living, we barely get by."
Cab drivers say the new taxi rates will boost the fare from the airport to Waikiki to about $24, up from about $21.
The fare hikes, the first since 1994, kick in July 1. The Island's approximately 1,700 taxi drivers will be allowed to charge a maximum of $2.25 for the first one-eighth-mile and $2.40 per additional mile, or $24 an hour, depending on how fast the cab is moving. The current maximum fare is $2 for the first one-eighth mile and $2 per additional mile, or $20 per hour.
There is no charge to cab customers with small baggage, but the cost for regular baggage will go from 35 cents to 40 cents per bag, and the cost for extra large or heavy bags will increase from $3.50 to $3.75 per bag.
Mayor Jeremy Harris submitted the approval for the fare hike to the City Clerk's office. No City Council action is required. Since the previous Island cab fare increase, the consumer price index for the private transportation industry has gone up 10.5 percent. The price of gasoline nationwide has jumped 43 percent.
Kim said a current ride from Honolulu International Airport to Waikiki is about $21, not including tips. He estimated the new rate will boost the fare to about $24.
Kim and other drivers say an average day of business at the airport is four rides to Waikiki. Since airport taxi-pickups are coordinated through a central dispatch to prevent disputes among cab drivers, the wait for each ride is about two to three hours.
Young Yeo, who also works for Sida, said he has to pay a $400 monthly fee to be allowed to work the airport area. He pays about $100 a week in gas for his Cadillac stretch limousine and $3,000 a year in auto insurance.
"That's not counting maintenance for your own car, and inspections," said Yeo, who has been driving taxis for 10 years. "I know friends who work 12- to 16-hour shifts to make money, sometimes seven days a week."
Yeo said the heavy competition among O'ahu's cab drivers makes business difficult. "The economy is slow in Japan, even the Mainland," said Yeo, waiting yesterday afternoon to pick up a customer. "Last year was a little busier than this year."
Said Kim: "Some cab companies charge lower than regular rates, making it harder for some of us."
With slim profit margins and long hours, drivers say the competition remains stiff but they stick with it because it is a self-run business.
"You set your own day or night hours and how long you want to work," said Jesus Sanchez, an independent cab driver who roams the Ala Moana area.
"It's called freedom," Kim said, smiling. "I don't like someone telling me what to do. Except where to go."
Scott Ishikawa covers transportation issues. His e-mail address is sishikawa@ honoluluadvertiser.com
