High Gas Prices Are Driving Business From Taxi Drivers

By David McGee
Staff Writer / Bristol Herald Courier
Published: May 15, 2008

BRISTOL, Va. – Jim Barr winced Wednesday while putting $20 worth of gasoline into his Cadillac taxi cab.

For his money, the owner of Ace Cab Co. got exactly 5.4 gallons of regular unleaded gasoline at the Food City on Euclid Avenue.

At this week’s record prices, completely filling the tank would cost about $60.

“I never dreamed it would get this high,” Barr said, shaking his head. “It’s going to get worse before it gets better.”

Escalating gas prices result in higher prices for everything but those who transport people or goods are particularly hard hit.

This week, gasoline signboards in the Twin City displayed a record average price of $3.67 for a gallon of self-serve unleaded gasoline, according to the AAA of East Tennessee’s weekly Fuel Gauge Report issued Wednesday. That is an 18.1-cent increase in the last week alone.

In Johnson City, the average price was $3.69, while prices averaged $3.67 per gallon in Kingsport. The national average price is $3.75, according to AAA.

Local taxi operators like Barr said sharply higher fuel prices are changing the way they do business.

“I’ve raised my start-up fee from $1.80 last year to $3.50 and now $3.75 as gas has gone up,” Barr said. “And I’m charging $2.50 a mile, which was $2 last year.”

Along the way, fewer people are using his service.

“I have seen a decrease in cab-service business, except to the airport,” Barr said, adding that he relies on longer trips to destinations like Lebanon and Wise County to remain in business.

“That really boosts us and helps us on the locals,” Barr said.

He charges set fees of about $40-$50 to transport customers to Tri-Cities Regional Airport in Blountville, the Exit 7 area of Bristol, Va., or Abingdon.

“It costs me $10 in gas alone to go to Abingdon and back,” Barr said.

Robert Groves, owner of Elite Taxi in Bristol, Tenn., said his business has nearly eliminated local service.

“I don’t take short runs because of the gas prices,” Groves said. “I can’t go to Exit 7 and run for the price I’m supposed to run. It won’t work driving 10 miles for a two-mile trip.”

Groves charges fixed amounts for longer trips with his Dodge vans, but the city mandates that his cabs use a meter for local trips, he said.

“I’ll take an airport run, but I can’t do local trips for $1.50 a mile,” Groves said.

Elite now focuses on contract transportation for longer distances. Of the seven vehicles Groves operates, the Dodge vans get eight miles per gallon and the Oldsmobile cabs get about 15.

Barr said his vehicle gets 18-21 miles per gallon, depending on driving conditions.

“You could try to use a smaller vehicle but you need space for people and luggage, and with the wear and tear, the smaller cars don’t last as long,” he said.

Barr also operates a van, but said he has reduced its usage except during race weeks at Bristol Motor Speedway.

Gasoline prices have risen about 55 cents per gallon during the past two months and about 75 cents since January, according to the AAA.

Last May, the average price for regular unleaded was $2.81 per gallon.

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