Taxicab fleets are real leverage points for some quick gains in terms of saved energy and reduced pollution with the introduction of hybrids.
Unlike most drivers, there is a compelling cash payback case for hybrid taxis. The fuel savings alone can pay for the taxi’s entire purchase price in just a few years, while actually increasing gross revenues as well since passengers seem to tip hybrid taxi drivers more than those driving traditional taxis. Thus, operating and ownership costs go down while revenues go up, this is the sort of winning formula that should attract all businessmen.
And, by the way, the business can reduce its footprint at the same time.
From Planet Forward comes this video look at a DC cab driver.
If anything, this understates the case in favor of hybrid cars. For example, many of the old Crown Vics and other used cars frequently in the ‘taxi biz’ get in the range of 10-12 miles, not 17 miles, per gallon in actual practice according to taxi drivers I’ve talked with. And, the Camry is a nice ride, but it gets significantly lower mileage than, for example, the Toyota Prius or even the soon to be out Ford Fusion. And, actual mileage can be over 100,000 miles per year and, in some areas, getting closer to 150,000 miles per year per licensed taxi. In this situation, the pure cash payoff for going ‘hybrid’ comes pretty fast.
In any event, we would all be better off if cities mandated a move toward high-fuel efficiency taxis (perhaps, with very limited exception, minimum of 30 mpg to begin with), with loan assistance for the move to hybrids helping speed this process.
1 response so far ↓
1 Craig Severance CPA // Apr 20, 2009 at 5:23 pm
This all sounds great but as a CPA I wonder how this taxi business can possibly write off the taxis since they are NOT heavy trucks (over 6,000 lbs GVW) but passenger cars and hence likely subject to ridiculously low deduction limits.
I cannot advise my clients to have their businesses buy a passenger car like a Prius because of these laws. Congress is still forcing most businesses to buy heavy trucks because of tax rules, see “She’s So HEAVYYYYYY! – How Congress Forces Businesses to Buy Heavy Trucks” at: http://www.energyeconomyonline.com/She_s_So_HEAVYYYYYY_.html
(Perhaps the taxi’s are special modified so they can be written off, but my point is Congress is actually preventing most businesses from buying anything but heavy SUV’s and trucks. This is NOT being fixed by any of the new energy legislation.)