Taxi services eye big savings from back-office merger:
TWO TAXI services based in Kingston are merging their back-office operations, but are still to sign off on the paperwork, although the collaboration is already under way.
Paul Yapp, the owner of Cool Cabs, confirmed the arrangement, saying he first approached El-Shaddai with the proposal in the latter half of 2017.
“Yes, we’re merging some aspects of the businesses. We’re doing so to make it stronger in that the radio rooms will operate as one to serve the public better. When you call, you will have access to more drivers and a larger fleet,” Yapp said.
However, the partners noted that the deal does not include changes in ownership and that the two services will continue to operate under their own brands.
El-Shaddai has a 24-hour operation out of Roberts’ Plaza on Red Hills Road, while Cool Cabs operates from Giltress Street.
Co-owner of El-Shaddai, Wayne Buchanan, was unwilling to speak about the collaborating, deferring comments to Yapp.
Both companies handle calls from everyday commuters. In addition, they service some of the same clients through contracts with corporate entities.
“The contracts and so on will still remain. For our part, our contracts with the likes of Flow, Grace, and Scotiabank – just to name a few – will continue to be honoured,” Yapp said.
For now, Cool Cabs operates with a fleet of 68 public passenger vehicles, most of which are either contract driver, or owner-operated, while ElShaddai’s fleet is around 130, Yapp said. For contract-driver taxis, an investor may have two or more vehicles as part of the fleet but drivers are assigned to operate the vehicle, he explained. Yapp is not ruling out a full merger at some point in the future, but says for now both will continue as independent operators.
“We don’t know what the future may hold, but for now we are working together to strengthen the system and we will see down the road what happens. There is still Cool Cabs and El-Shaddai, but we’re working together as one,” Yapp said.
All dispatching will be done through El-Shaddai going forward, he added.
Both companies’ vehicles are equipped with very high frequency or VHF radios operating on different frequencies. Yapp bemoaned the inefficiency of such an operation, with the two companies having to buy separate radio spectrum and dedicated equipment.
With the back-office merger, the companies will share radios on the same frequency, but operate on different channels.
“There will be two systems in the radio, but you will have a channel one and a channel two. It’s an easy switch and there will be a smooth transition,” Yapp said.
He reports that there has been great i mprovement in the pickup of passengers so far, since there is now a larger fleet with more drivers available.
Cool Cabs previously operated as Candy Cab.