Israeli taxis will be marked on all sides with a standard
logo to help identify them as cabs, and a number in case
passengers want to lodge complaints.
The Transportation Ministry, in cooperation with the Taxi
Drivers' Organization, began an experiment initiated by
Transportation Minister Avigdor Lieberman to evaluate the new
black and orange logo for special-order taxis.
One sticker in Hebrew, English and Arabic will be adhered to
the front doors and another sticker bearing the cab number
will appear on the sides towards the back of the vehicle
alongside the Transportation Ministry emblem. The roof top
mount will remain unchanged. The Ministry of Transportation
will decide how to proceed with the logo, based on passenger
feedback.
Following rumors that Egged plans to enter the taxi market,
Chashav economists M. and S. Katzin conducted a calculation
including vehicle purchase and maintenance and the minimal
daily turnover needed to generate a profit.
Separate calculations were made for the Mercedes 2200 cc and
the Skoda Octavia. The price of the Mercedes is NIS 130,500
with a tax exemption such as the taxi drivers enjoy (or NIS
300,000 including taxes). The price of the Skoda Octavia is
NIS 73,000.
Taxis travel about 90,000 km per year. Monthly maintenance
costs for a Mercedes (including devaluation) come to NIS
9,011. The minimum daily gross receipts necessary are NIS
360. The monthly cost of maintaining a Skoda is NIS 7,322,
meaning the minimum turnover needed comes to NIS 293. When
the average monthly wage (NIS 7,200) is added in, the daily
turnover must be NIS 648 per day (NIS 16,200 per month) for a
Mercedes or NIS 581 per day (NIS 14,525 per month) for a
Skoda.
Based on this calculation it is probably not worthwhile for
Egged to enter the taxi business. Chashav notes that
inexpensive cabs are more financially viable than more
expensive models and that used taxis are available and
monthly expenses such as washing and legal costs can be
reduced.
Chashav also recommends evaluating whether it might be
justified to set fares according to the type of cab.
Despite reports, Egged plans to incorporate taxi service at
the central bus stations in Jerusalem and Haifa, don't rush
to order a cab since nothing has been actually decided
yet.
