About taxis

Given the recent economic downturn an interesting question to ask is whether local taxis will see a decrease in the number of customers they service, and what can be done. Many consumers looking for ways to tighten their wallets and purses are sure to look at their travel habits. During the summer of 2008, when gas prices reached upwards of $4 dollars/gallon, many began looking at their personal vehicles as cash hogs, and looked for alternate ways to commute. Local taxis are likely to be hit hard, as commuters look to subways, buses, biking, and even walking curb commuting cost. Further as more consumers are becoming concerned about global warming, and are searching for ways to go green local taxis may look less attractive to some. These factors may be spell for troubling times for local taxis. Hard economic times, as everyone knows, cause consumers to change their habits. Local businesses always report a drop in sales during a recession; air travel, tourism, and retail are no different. However, the double onslaught of a global recession and consumers concerned about volatile fuel cost have led many to abandon the car as a means of travel as often as possible. Further for those that use local taxis in place of owning their own vehicle, hard economic times may simply leave them without the income to even consider local taxis as an option. This means that as more look to public transportation local taxis are likely to see a decrease in customers. Local taxis, which seem very convenient during economic booms, provide service between places that consumer may now feel they can walk or bicycle. In an effort to curb this effect many local taxis may have to lower their fares in order to keep attraction among consumers. Yet, as simple economics dictates, this likely means that many local taxis see profits decrease. This fact is emboldened by the fact that local taxis are themselves subject to volatile fuel cost. Another blow to the economics of local taxis is the increased concern about global warming. As many consumers look for ways to reduce their own carbon footprint, many are looking for ways to avoid automobiles altogether. Local taxis begin to look, to consumers, not only uneconomical but environmentally unsound as well.

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