Striking New York City Cab Drivers Want To Drop off Cards

Merchants often grumble about the costs and hassles of accepting payment cards, but rarely do they go on strike in protest. But that's what some New York City taxicab drivers started doing on Wednesday, though their gripes involve more than just cards. According to late-morning wire-service accounts, an unknown number of cab drivers are on strike just as the city is playing host to a major fashion convention and the U.S. Open tennis tournament. The New York Taxi Workers Alliance, which claims to represent more than 8,400 drivers, late last month called on drivers to strike Sept. 5 and 6 in protest of plans approved by the Taxi & Limousine Commission requiring cab owners, beginning by October, to install integrated card readers, global positioning system (GPS) devices, and television monitors with feeds that will let passengers watch news programs and other shows in the back of the cab. The drivers object to the costs of card acceptance that they'll end up paying, and some fear the GPS systems, which will let riders follow the cab's route, also will let cab owners monitor their movements, according to The New York Times. The city has 44,000 licensed drivers and 13,000 cabs. The leading U.S. payment-terminal vendor, Santa Clara, Calif.-based VeriFone Holdings Inc., is one of four approved vendors that will provide the integrated units. VeriFone, which is working with MasterCard Worldwide, expects to have about 5,000 systems installed by approximately year's end, according to a spokesperson. Besides conventional transactions, the units will be capable of processing MasterCard PayPass contactless card transactions. VeriFone is the majority shareholder of VeriFone Transportation Systems, a joint venture between VeriFone and TaxiTronics, the company that services more than 8,000 taxi meters in the New York City fleet. The spokesperson refused to comment on what financial impact, if any, the strike would have on VeriFone, citing a quiet period before the company issues its quarterly earnings report Thursday. The spokesperson, however, acknowledges that adapting to new technology often is difficult, but ultimately can have a good payoff. In Philadelphia, new card readers have led to higher tips on at least some fares, he says. Nonetheless, at least some drivers in Philadelphia staged a strike this week timed to coincide with the one in New York. The Philadelphia drivers cited the same objections, but brought their job action to an end after just one day, according to press accounts. “It's a big cultural change for drivers to deal with new technology,” the spokesperson says. “Ultimately it's going to be about profitability, productivity, and customer service.” In Philadelphia, where the program to bring card payments to that city's cab fleet was announced last year, more than 1,600 cabs now have VeriFone Transportation Systems equipment and accept PayPass, according to MasterCard.