These factors are creating a perfect storm for local airport transportation. So that delayed cars coming to the market all across the United States, including for us.” “When things started to open up again, they went to order new cars, but the car manufacturers all had computer chip issues. “All the car rental companies sold off their cars to be able to survive the pandemic,” Klein explains.
#PEAK HOURS FOR UBER IN DALLAS DRIVERS#
And several ridesharing drivers have said they've switched to more predictable and lucrative Door Dash or GrubHub.Īnother factor this summer was the nationwide shortage of rental cars. Rides can be found during peak hours in the summer, but are harder to come by late at night, early in the morning, or during the off-season. Klein says Uber, Lyft, and other ridesharing services have not yet taken root in Traverse City like they have in bigger metropolitan areas. “This would immediately relieve insurance carriers of immense liability,” the coalition has stated.īut the cab shortage isn’t the only problem. The PTC is lobbying for a legislative change that would remove for-hire passenger vehicle businesses from the order of priority that determines who pays PIP benefits. PIP has historically been unlimited in Michigan, where in most states, it’s capped at $500,000.” “If I got the crash with you in my car, and I'm a taxi driver, and you're injured, my insurance provider could pay $20 million in medical expenses over 20 years for you. “And so commercial insurance companies, they're trying to avoid Michigan, because of the high PIP costs,” White says. Passenger transportation businesses are required to have PIP insurance too, and if a passenger doesn’t have their own coverage – or isn’t named on a PIP policy held by a parent or other relative – that can leave insurers liable for huge medical costs in the event of an accident. Those costs are due in part to the state’s no-fault insurance law, which requires drivers to buy expensive personal injury protection (PIP) coverage. In general, Michigan has the highest car insurance rates in the country. “We did not feel it was financially feasible to continue so we officially closed our doors at midnight last night.” “Our fleet insurance was set to renew last night at midnight but when all of our options were counted, we faced an insurmountable increase in insurance pricing,” he wrote. In June 2019, Doug Dornbos – Cherry Capital Cab’s owner – posted on Facebook that he was ceasing operations of the business effective immediately. The big casualty locally was Cherry Capital Cab, which closed its doors before the pandemic even hit. So, between the virus, the shutdowns, and commercial insurance tripling, that’s why half the local cab companies are gone.” This is not a high profit margin business, especially in the winter. And then in May, when I re-up my annual contracts every year, it was going to be $1,000 a month. “My insurance rates were $375 a month two years ago,” White tells The Ticker, whose business is classified as a limousine service. According to the Passenger Transportation Coalition (PTC), a statewide group seeking legislative reform to address those viability concerns, Michigan has lost “more than 100 transportation companies and more than 1,000 vehicles.”ĭan White, owner of the Traverse City-based Dan’s Airport Transportation, says the biggest issue facing taxi, limo, shuttle, and charter bus companies is commercial insurance. It’s not just a local problem, either: Klein says that “Michigan as a whole has seen over a 40 percent reduction in the number of cab companies,” due to questions of business viability. The biggest problem is how dramatically the local taxi industry has shrunk in recent years. And according to Airport Director Kevin Klein, the laundry list of factors contributing to the problem means there is no silver bullet fix. Though Cherry Capital Airport (TVC) is coming off a record-breaking summer of visitors, the airport is also facing a ground transportation crisis that has made it challenging for those visitors to get around town. In a bigger city, it’s easy to get off a plane at an airport, grab your baggage, and head out to hail a cab or call an Uber. Here's Why You Can't Get An Uber From Cherry Capital Airport - And Possible Workarounds By Craig Manning