Yellow Cab owner says company meets demand, warns Green Taxi license would cut service and jobs

Corey Gray, owner of Yellow Cab of Missoula, told the Montana Public Service Commission on May 22 that his company is meeting the city’s taxi needs, has recently ordered a hybrid vehicle for the fleet and opposes granting motor-carrier authority to a new applicant because it would reduce Yellow Cab’s revenue and likely force staff cuts.

Gray told commissioners he uses daily logs and dispatcher reports to set how many cabs he puts on the street and that average response times he measured on sample days were within about a half hour. “I don't think it's a pressing public need,” Gray said when asked whether prearranged pickups outside existing airport, bus-depot and medical appointment runs are necessary now.

The hearing record shows Yellow Cab operates a six-vehicle fleet and plans to add a seventh when a 2007 Toyota Camry Hybrid ordered in February arrives in mid-June; Gray said the existing cars average about 12–15 miles per gallon. He testified the company carries about 6,000 passengers a month (roughly 72,000 a year) and receives roughly 8–10 formal complaints a year.

Gray provided annual reports filed with the Public Service Commission documenting financial results. He said Yellow Cab lost $34,737 in the 2003 reporting year and $41,794 in 2004, recorded a loss of about $12,929 in 2005 and posted a $8,902 profit in the 2006 report. Gray said he and his family have taken on debt and used proceeds from the sale of an income property to keep the business operating.

Gray argued that granting authority to Green Taxi would siphon off customers. “If their projections are anywhere as close as mine, basically a third of our business would be gone,” he said, adding that a sustained revenue drop could make it impossible to operate 24 hours a day and would likely lead to laid-off drivers and fewer vehicles on the road.

Gray also described Yellow Cab’s HomeFree program, which he said the company helped found in 1987 and which provides free rides to people who need a safe ride home; he testified the program has provided over 50,000 rides since it began. He said Yellow Cab handles prearranged time calls for limited categories (airport, bus depot, medical transport) and is willing to consider other prearranged services if the commission finds a public need.

A letter read into the record from Yellow Cab driver Robert J. Bowlby described night driving challenges—intoxicated passengers, incorrect pickup information and occasional assaults—and praised Gray’s responsiveness to maintenance and safety issues. “Yellow Cab provides a safe, efficient service that we are continually striving to improve,” the letter said.

The testimony did not include a formal vote by the commission. Commissioners set a post-hearing briefing schedule (initial briefs due June 29, reply briefs July 20) and adjourned the hearing.

Clarifying details in the record include Yellow Cab’s stated authority to transport passengers in Missoula and a 50-mile radius, sample average pickup-to-drop-off times of about 28.8 minutes on the days Gray analyzed, the planned increase of the fleet from six to seven vehicles once the hybrid arrives, and the financial figures Gray identified in his company’s annual reports.