Taxi Economics

Today was a very slow day. Catherine and Mark each had a bit of homework. I worked on some research and had a Skype meeting. Tracy is teaching her classes this evening.

If I had my way, I would be watching the Barcelona vs. Arsenal Champions League match, but, I can’t. We don’t get it on TV. And, I have been unable to find the game online. With Tracy away, I’m at the flat with the kids.

So, I’ll write a bit about taxi economics.

On one of my many rides earlier this year, I asked a driver about the taxi industry. As I understand it, few drivers own their cars, although many aspire. Instead, most drivers pay a daily “rental” of, say, 50 cedis for a nice car, less for a vehicle in poor condition. Drivers must cover the cost of fuel. Drivers decide fares independently, depending on destination, expected traffic, time of day, etc. Fares are negotiated for each ride.

Some owners require the driver to drop and pick the owner’s kids at and from school, with time between for as many fares as possible. (One such driver comes to Catherine’s school, and he is annoyed when the child is late out of the classroom.)

This system leads to predictable and understandable outcomes. Similar to tenants who take little care of their apartment, many taxi drivers have seemingly little concern for the condition of their vehicles. Nonworking speedometers and other gauges are not unusual. Dents and dings are common, as drivers risk quarter panels and doors to advance in traffic jams.

Furthermore, the economic pressure to obtain fares means that bathroom breaks reduce income. Public (but mostly discreet) urination by taxi drivers is common. For those, like Catherine, who are unaccustomed to the practice, it is an awkward sport to find peeing drivers.

The supply of taxis is high; I have seen more taxis than private cars stopped at some traffic lights. Nonetheless, a driver told me that the occupation is a good moneymaker, considering that the Ghanaian economy is poor and jobs are scarce.

—Matt