Author: admin

Consumers often prefer flat-rate pricing over metered pricing due to the psychological discomfort associated with watching costs increase with each unit of consumption, known as the “taxi-meter effect.” This preference is not solely based on the economic benefits of certainty and convenience or an overestimation of usage but stems from a desire to avoid the anxiety of incremental charges. Studies, including those by Nobel Prize-winning economist Daniel L. McFadden and research by Anja Lambrecht, have demonstrated this bias across different industries, from telecommunications to retail banking. The discomfort applies even to experiences consumers do not enjoy, indicating a deep-rooted psychological aversion to metered pricing. This insight suggests that businesses aiming for transparency and high usage might consider designing pricing schemes that offer entry-point metered rates alongside flat-rate options for more loyal customers to encourage usage without the deterrent effect of metered charges. Some businesses, like car-sharing services, might find offering a flat rate challenging but can mitigate the taxi-meter effect by reframing their pricing presentation to reduce consumer anxiety over incremental costs.

For more information:

https://slate.com/news-and-politics/2013/12/the-taxi-meter-effect-why-do-consumers-hate-paying-by-the-mile-or-the-minute-so-much.html

A Manhattan nurse reported being assaulted by a pedicab driver named Mahamadou Soumano in Central Park after a dispute over the fare. The nurse, who had been boating with a friend, hired the pedicab for what was supposed to be a short ride. The trouble began when the driver deviated from the planned route and then demanded $15 for a ride that lasted about a minute. When the nurse offered $3.50, the situation escalated, and Soumano allegedly punched her, causing a visible bruise on her face. Although Soumano initially followed the women as they walked away, he retreated when a couple intervened, and the nurse subsequently called the police. Soumano was arrested and charged with third-degree assault, though he denies the allegations, claiming he did not physically attack the nurse and had even called the police himself after the incident. His colleague, Salim Diarra, described Soumano as a part-time pedicab driver and student, generally known for his good humor and calm demeanor.

For more information:

https://nypost.com/2013/11/20/central-park-pedicabby-punched-me-nurse/

For more information:

https://nypost.com/2013/10/07/ny-pedicabbies-still-use-foreign-drivers-licenses/

Three tourists from Michigan tracked down a pedicab driver in New York City who charged them over $500 for a short 2.9-mile ride to Coyote Ugly bar from Hotel Mela in Times Square. The driver, Ibraiym Denizov, demanded $163.60 from each passenger after a perilous ride, much to their shock since they expected the total cost to be around $30 to $40 based on prior experiences with other pedicabs. The women, unfamiliar with the option to contact police, ended up paying through a mobile payment service. Later, Jennifer Halladay and her friends contested the charges with Visa and PNC Bank, aided by information from pedicab organizations about common frauds. They managed to secure partial refunds and filed a complaint with the city’s Department of Consumer Affairs. Denizov remains a licensed pedicab driver, but the incident has sparked calls for his removal from the streets and for him to face consequences for his actions.

For more information:

https://nypost.com/2013/09/24/tourists-nail-500-pedicabby/

Three tourists from Michigan, after being charged an exorbitant $500.80 for a pedicab ride in New York City by driver Ibraiym Denizov, sought revenge once they returned home. The journey from their Midtown hotel to Coyote Ugly in the East Village, a mere 2.9 miles, resulted in each woman paying $163.60. Unaware of their rights at the time, they completed their outing at the bar before taking action. Back in Michigan, one of the women, Jennifer Halladay, reached out to pedicab organizations for advice and successfully appealed to Visa and PNC Bank, resulting in significant refunds for herself and another friend, Jen Halcomb. The women also reported Denizov to the Department of Consumer Affairs, showcasing their resolve in addressing the unfair treatment they experienced.

For more information:

https://gothamist.com/news/tourists-get-revenge-after-paying-pedicab-driver-500-for-trip-to-coyote-ugly

The writer recounts their reservations and eventual experience of taking a pedicab ride in New York City, driven by Shalkar Kabdenov from Kazakhstan. Initially hesitant due to concerns about safety, cost, and the personal discomfort of being chauffeured, as well as fearing being mistaken for a tourist, the writer eventually succumbed to the convenience of a ride while feeling weak with hunger. The pedicab ride, which cost significantly more than other public transport options, was also chosen over a taxi for its unique ability to navigate through traffic and tight spaces, exemplified by Kabdenov’s maneuvering around a police barricade and choosing a route to avoid steep hills, despite it being longer. Kabdenov, who rents his pedicab and is also studying English, demonstrated resourcefulness and determination, traits that seemed to impress the writer despite the initial skepticism.

For more information:

https://www.wsj.com/articles/SB10001424052702304213904579091431527492204

Pedicab drivers in New York City are circumventing regulations by using illegal electric motors, leading to unfair competition and safety hazards. These motors, banned since 2008, are hidden under seats, within wheel hubs, or disguised with cardboard. Approximately 25% of pedicab drivers reportedly use such motors, particularly in areas like Central Park and Midtown, where they can work longer hours and serve more customers without fatigue. This gives them an advantage over drivers who rely solely on human power, leading to resentment among the latter. The illegal use of motors not only increases the risk of accidents due to higher speeds but also jeopardizes passenger safety as insurance may not cover incidents involving motorized pedicabs. Violations of the ban can lead to fines ranging from $200 to $4,000, and repeat offenders risk having their pedicabs seized. Despite inspections, the practice persists, worsening daily as violators communicate to evade enforcement.

For more information:

https://nypost.com/2013/09/10/pedicab-cheats-using-illegal-motors/

Since a new law enforcing transparency in pedicab fare calculations was introduced last month, about 100 drivers, or roughly 9% of the licensed pedicab drivers in New York City, have quit. The legislation requires fares to be prominently posted and calculated using a timer to prevent overcharging, targeting drivers who previously exploited tourists and locals with unclear and deceptive pricing. As a result, these drivers, particularly those who operated at night in Midtown, have either left the industry or moved away, with some even returning to their home countries. The new rules mandate charging by the minute, setting flat rates, and using timers that are inspected and sealed by the Department of Consumer Affairs. This crackdown has significantly curtailed the ability of drivers to scam passengers, leading to a cleaner, more reputable image for the pedicab industry. However, the loss of the ability to overcharge has drastically reduced earnings for some drivers, with reports of incomes dropping from up to $700 a day to a maximum of $200. Despite these challenges, honest drivers welcome the regulation, appreciating the improved public perception and reduction in fraudulent activities.

Gregg Zuman, co-founder of the New York City Pedicab Owners’ Association and owner of Revolution Rickshaws, is committed to proving that not all pedicab drivers exploit tourists, despite the reputation tarnished by recent swindling incidents. Stationed near Penn Station, Zuman is ready to navigate the city streets, avoiding operation in high winds. His transformation from a cubicle-bound editor at JPMorgan to a dedicated “pedicab practitioner” illustrates his passion for the pedicab business, which has seen regulatory improvements under the Bloomberg administration aimed at protecting customers. These regulations have led to a noticeable decrease in scams and the disappearance of dishonest drivers from the streets. Zuman, along with drivers like Dale McMillian, who is known for his agility in maneuvering the streets, relies on exceptional verbal negotiation skills to thrive in this industry. Zuman finds deep satisfaction in providing enjoyable rides, viewing each successful interaction as a contribution to making the city a better place, even if it means persisting in his sales pitch to initially reluctant customers.

For more information:

https://www.newyorker.com/business/currency/how-we-roll-pedicabs-in-the-city

Pedicab drivers in New York City are exploiting the mobile payment service Square to scam tourists by charging exorbitant fees for short rides, often without informing customers of the added costs. A notable instance involved a driver who charged tourists $720 for a mere 20-minute journey. Square has been proactive in combating such fraud, shutting down accounts found engaging in deceptive practices. Despite this, the easy-to-use nature of Square’s credit card readers makes them an attractive tool for fraud. Recent legislative changes aim to combat these scams by mandating clear display of rates and prohibiting extra fees and per-passenger pricing, which had previously allowed pedicab drivers to inflate charges significantly.

For more information:

https://www.businessinsider.com/square-abuse-by-pedicab-drivers-2013-7