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, a pedicab rental company, aims to prove that not all pedicab drivers exploit tourists. After leaving his corporate job at JPMorgan, Zuman became a “pedicab practitioner” ten years ago and takes pride in his work. While recent regulations under the Bloomberg administration have reduced scams and removed dishonest drivers, Zuman and other dedicated drivers like Dale McMillian focus on providing genuine, enjoyable rides. Zuman emphasizes the importance of verbal negotiation in the business and the satisfaction of making customers happy, seeing his work as a way to improve the city.
For more information:
https://www.newyorker.com/business/currency/how-we-roll-pedicabs-in-the-city
Pedicab drivers in New York City have been using the mobile payment service Square to scam passengers by adding hidden extra fees without informing them, according to The New York Post. Passengers only realize they’ve been overcharged when they check their account later. A recent incident involved a couple being charged $720 for a 20-minute ride. Although Square shuts down fraudulent accounts, it has inadvertently become a tool for these scams. To address the issue, a new law has been introduced that requires pedicab drivers to clearly display rates, prohibits extra fees, and enforces per-passenger pricing. Previously, pedicab drivers could charge by block and per passenger.
For more information:
https://www.businessinsider.com/square-abuse-by-pedicab-drivers-2013-7
Categories
Square Facilitates Pedicab Fraud – NY Post
Pedicab drivers in New York City are exploiting the Square mobile payment app to overcharge tourists, often without their knowledge until they review their credit card statements. The app allows drivers to add undisclosed fees, claiming transaction fees or taxes, to inflate the charge. This scam particularly targets vulnerable individuals such as late-night revelers. Laramie Flick, acting president of the NYC Pedicab Owners Association, criticized Square for making it too easy for dishonest drivers to commit fraud and difficult for victims to track down the perpetrators. Recently, a pedicab driver charged a Japanese couple $720 and attempted an additional $616 charge, which was blocked by the credit card company. The city’s Department of Consumer Affairs is seeking to subpoena Square for the driver’s details, though Square maintains that victims’ banks can contact them for transaction details but not the fraudsters’ contact information. Square asserts its commitment to collaborating with cardholders, banks, and authorities to address fraud and protect consumers.
For more information:
Two Japanese tourists, Chisa Niwa and her husband Hiroki, were significantly overcharged by a pedicab driver in New York City, paying $720 for a 20-minute ride that should have cost about $50. The incident occurred on their first day in the city when they tried to travel from the NBA Store on Fifth Avenue to the Knickerbocker Bar and Grill. After being unable to secure a yellow cab, they opted for a pedicab. The driver, misleadingly pointing to a $5 line on his price board, later charged them an exorbitant fee upon arrival. Additionally, an attempt to charge another $616 was fortunately blocked by their credit card company. The Department of Consumer Affairs is now seeking legal action to identify the driver through Square, the smartphone credit-card reader used for the transaction. This event marred the tourists’ excitement for their trip, casting a negative shadow over their experience. New regulations that require pedicab drivers to clearly display rates and charge per minute are hoped to prevent such scams in the future.
For more information:
https://nypost.com/2013/07/19/fleeced-pedicab-driver-charges-japanese-tourists-720-for-20-min-trip/
Authorities are investigating after a pedicab driver in New York City charged a Japanese couple $720 for a 20-minute ride from midtown to the Village, a trip that should have cost $50. The driver pointed to a $5 rate on the price board before starting the ride. Upon reaching their destination, the driver presented a bill for $520 and insisted they had to pay. The couple used a credit card, but later discovered they had been charged $720 and the driver had attempted another $616 charge, which failed. The Department of Consumer Affairs is using smartphone credit card records to track down the driver.
For more information:
Here are five strategies to avoid being scammed by pedicab drivers in New York City, especially given the recent regulations requiring clear posting of per-minute rates:
- Educate Yourself on Local Laws: Before taking a pedicab, familiarize yourself with the city’s regulations, which mandate that pedicabs can only charge a per-minute rate with no hidden fees. Print out and carry the Department of Consumer Affairs guidelines to show to the driver if necessary.
- Choose Experienced Drivers: While this advice could be seen as problematic, some suggest opting for older, more experienced drivers who may be less likely to overcharge. However, this advice should be approached with caution to avoid discriminatory practices.
- Record the Driver’s ID: Make a note of the driver’s identification number or name. Letting the driver know you have this information might deter them from attempting to overcharge you.
- Be Vocal If Scammed: If you suspect you’re being overcharged, don’t hesitate to confront the driver loudly or call for police assistance. Making a scene might prompt the driver to relent rather than risk a public confrontation.
- Consider Alternatives to Pedicabs: Given the potential for scams and the general inconvenience and discomfort of pedicabs, consider other forms of transportation around the city, such as walking, taking a bus, or a subway, which might offer a more reliable and pleasant experience.
These tips aim to protect tourists and residents from falling victim to overcharging practices that have been a significant issue with some unscrupulous pedicab drivers in New York City.
For more information:
New pedicab regulations designed to prevent scams and enhance rider transparency have taken effect in New York City. Under these rules, pedicab drivers are required to prominently display their rates on their carriages and time rides using stopwatches calibrated by the Department of Consumer Affairs. The law mandates that charges be calculated by the minute, eliminating per-passenger surcharges and other additional fees. Each operator must also provide information cards that act as receipts, detailing the driver’s name, rate, and contact information. These measures, supported by the NYC Pedicab Owners Association, were introduced following numerous complaints about excessive charges, including rides costing up to $400 for just 14 blocks, and the addition of unjustified surcharges. On the first day of implementation, rates observed in areas like Times Square and Central Park ranged from $2.50 to $4.75 per minute. Pedicab driver Irving Ferreira expressed support for the new rules, noting that they would curb the exploitation prevalent among a minority within the profession.
For more information:
https://nypost.com/2013/07/13/city-rolls-out-no-cam-pedicab-rules/
New pedicab regulations have taken effect in New York City to prevent riders from being overcharged. These rules require pedicab drivers to clearly display their prices, use stopwatches calibrated by the Department of Consumer Affairs to time rides, and charge solely by the minute without any per-passenger surcharges or additional fees. These measures were introduced following numerous incidents where tourists faced exorbitant charges for short rides, including a case where Japanese tourists were charged $720 for a 20-minute ride, a gross overcharge from the displayed $5 rate.
The NYC Pedicab Owners Association supports these changes, emphasizing that they will make it harder for unscrupulous drivers to exploit riders with “phantom charges” on top of already high fees. The city’s new law also requires that each pedicab driver carry information cards that act as receipts, providing transparency about the driver’s identity and rates. The city will enforce these rules strictly, with penalties reaching up to $1,000 for repeated offenses. These regulations aim to restore fairness and transparency to the pedicab industry, which has been plagued by deceitful pricing practices.
For more information:
In Midtown Manhattan, pedicab pricing can feel like the Wild West due to its unregulated nature. A striking example occurred last August when a tourist was charged $442 for a 15-minute ride that spanned less than a mile. Initially, the pedicab driver quoted a dollar per block, only to reveal a $100 minimum per person at the trip’s end, then requested a tip. This incident underscores the unpredictability and potential for exploitation in pedicab fares.
To address these issues, New York City, collaborating with pedicab representatives like Laramie Flick, president of the pedicab owners association, has devised new regulations. Set to take effect next week, these rules mandate that drivers post their rates clearly and charge consistently per minute, applying uniformly to all customers. While Flick supports these changes, not all drivers are pleased. Ibrahim Donmez, a veteran driver, argues for rate flexibility based on factors like route difficulty, weather conditions, or passenger count, emphasizing the bespoke nature of a human-powered service like pedicabs. These new regulations aim to protect tourists and ensure a fairer transaction process.
For more information:
https://www.npr.org/sections/money/2013/07/09/199048226/how-to-spend-442-on-a-15-minute-cab-ride