Tue, May 11, 2004 - Page 10 News List

Cabbies demand a refund

INCOME LOSSES A group of drivers have established a new company to safeguard their interests in a dispute over a GPS service that ran into financial difficultities

By Jackie Lin  /  STAFF REPORTER

More than 100 Taiwan Taxi (台灣大車隊) drivers demonstrated outside the Taipei City Council's offices yesterday morning, demanding that the group's major shareholder -- THI Consultants Co (鼎漢工程) -- return the deposits they paid to join a global positioning system (GPS) service that never really got off the ground.

The taxi drivers demanded that Taipei's Bureau of Transportation Director Lin Chih-ying (林志盈), who is a former general manager of Taiwan Taxi, help resolve the dispute.

THI Consultants pooled paid-in capital of NT$250 million to establish the cab group in June 2002, offering the nation's first high-tech taxi service using GPS technology.

But a financial crisis erupted in late March and THI Consultants halted the GPS service on March 26, citing the "relocation of transmission stations."

It has not resumed the service.

Taiwan Taxi's drivers say they have suffered dramatic income losses and demanded that the company return payments of more than NT$30,000 to each of them, which included deposits and GPS devices installed in their cabs.

While the causes of THI Consultants' financial difficulties are still unknown, the high cost of satellite communications and an insufficient number of taxis joining the group could have been an important factor, Lin said.

Communications with call centers and wireless services cost NT$2 million and NT$1.5 million per month respectively, Vincent Wu (吳毓耕), a former employee of THI Consultants, said yesterday.

No one from THI Consultants was available for a comment before press time yesterday.

A Chinese-language newspaper reported that the company has debts of more than NT$100 billion.

Lin said that he was not in a position to mediate in the dispute, and suggested that drivers negotiate with THI Consultants by means of a self-help organization.

"This is why we established a new company last month to safeguard drivers' interests and rights," said Chen Yu-chou (陳玉洲), general manager of Taiwan Taxi Co (台灣大車隊公司), which was established on April 1.

The new company has recruited 1,200 drivers from the original group and would like to attract more members, Chen said at a press conference yesterday afternoon.

Chen said the company has hired lawyers to deal with the dispute.

Set up on capital of NT$10 million, Chen said the new company was "completely independent of THI Consultants" and that all driver members were shareholders."

He said the company would be operated with "financial transparency" in an effort to safeguard drivers' interests.

To differentiate itself from the original service group, Lin said they added the two Chinese characters meaning "company" (公司) to the original name on the cabs' roof-top light boxes.

A cartoon drawing of a panda forms part of the new company's logo, Chen said.

The company has offered GPS services in its new fleet since April 23 in the hope of consolidating the original customer base.

Wu, currently Taiwan Taxi Co's spokesman, discounted concerns that the new company will also end up with financial difficulties.

He said the basic costs involving call centers and wireless services would be lowered to increase profit margins.

"We want passengers to enjoy reliable services and drivers to place their trust in our company," Wu said.

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