A Timeline of Flywheel’s Scheme to “Ensure a Superior Experience”

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Just when things couldn’t get any worse for the San Francisco taxi industry…

On April 4, Flywheel sent out a message to all the drivers on their platform, notifying us that, “In our continuing effort to ensure a superior experience for drivers and passengers in San Francisco, Flywheel Technlogies will be suspending all orders to drivers who do not drive for one of Flywheel’s Color Scheme partners on April 9th, 2018.”

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The following day, April 5, Joe Fitzgerald, wrote about Flywheel’s decision in the S.F. Examiner.

“It’s a war starting” – John Lazar of Luxor Cab

Flywheel Technologies was on the verge of closing but was purchased in late 2017 by Hansu Kim, he told the Examiner. Kim also co-owns Flywheel Taxi, the cab company that sports the logo of the app on its cabs, which was formerly DeSoto Cab Co.

Kim and the new owner of Yellow Cab, Chris Sweis, have different visions for Uber-like apps to draw riders back to taxis. Yellow Cab’s current offering, YoTaxi, is branded with Yellow Cab colors, which some insiders said may confuse riders of different-colored cab companies.

Sweis, the owner of Citywide cab, recently purchased both Yellow Cab and Luxor Cab, among the largest cab companies in The City. Flywheel Taxi is its largest rival.

Kim said the cab companies Flywheel barred from using its app were operating under-par in a variety of ways: Vehicles did not have proper insurance, drivers cleared to use Flywheel were sharing the app with unlicensed drivers, and some taxi companies refused to sport Flywheel logos on their vehicles.

“We’ve had drivers provide a poor level of service to the passenger,” Kim said, “We’re trying to force the industry to abide by certain service standards.”

But Sweis, the owner of Yellow Cab, said he’s “worried” that Flywheel is breaking its promise to “unite the entire industry.”

On April 6, Flywheel sent out a message that a few cab companies were now working to become color scheme partners:

On April 7, more cab companies were added to the list of potential color scheme partners:

On April 9, Joe Fitzgerald wrote more about the decision for the S.F. Examiner.

All told, 1,053 taxi drivers would have been effected, according to the San Francisco Municipal Transportation Agency. But as of Monday, Kim told the San Francisco Examiner that many of those companies were discussing options with Flywheel.

“It’s safe to say we are in talks,” said Mark Gruberg, who helped found Green Cab and serves on its board. “We have not made any commitment … We have not yet seen a contract. We have no idea, and I don’t think anyone else does either, what he’s asking of us.”

Though companies like Green Cab are in talks with Kim, the only holdouts are apparently the co-owned companies Yellow Cab Co-Op, Luxor Cab, and Citywide, as well a handful of smaller companies such as S.F. Taxi, Vina Cab, American Cab, and Comfort Cab.

The combined Yellow Cab, Luxor Cab and Citywide are, together, Flywheel’s largest rival.

Chris Speis, owner of the Citywide/Luxor/Yellow consortium, issued this response:

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On April 11, at the SFMTA Taxi Task Force, the main topic was Flywheel’s decision.

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Joe Fitzgerald was there to document the proceedings, which included a large group of angry taxi drivers:

They called Kim “useless” and said his decision was “extortion” and “cutting off your nose to spite your face.” They said Kim had a “God complex” and accused him of “lying,” running a “dictatorship,” and “effectively putting a gun to everyone’s head.”

Few were happy. But they also wanted answers.

Kim alleged taxi drivers would accept a rider’s request on Flywheel, only to cancel it once someone hailed them on the street “with luggage,” implying a lucrative airport trip, and that taxi drivers would tell Flywheel customers “it’s a scam” and demand cash. Kim also alleged some taxi companies misstated the number of cabs in their fleet when filling out insurance forms in order to seek lower premiums, and would not provide insurance documentation to Flywheel to prove otherwise.

“The fact is, overall, the level of service in the taxi industry is extremely poor,” Kim said.

Ultimately, Hansu and Chris Sweis agreed go into mediation to sort out the debacle so drivers could resume getting orders and the people of San Francisco could continue to get prompt service.

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Also on April 11, taxi blogger Alex Sack wrote about his concerns about the Flywheel app (which he refers to by its original came Cabulous) and his efforts to stay on the platform without sacrificing the entire industry to their control.

This is some misguided response to the new owner of Yellow cab having recently bought CityWide and Luxor, and consolidating them all under Yellow’s YoTaxi app! But, hmm… That doesn’t preclude those drivers from also servicing Cabulous hails on their personally-supplied Android, like me. Hell! And Citizen’s Cab isn’t involved with Yellow, or their YoTaxi app! Why are we on the list. Huh? Cabulous is pulling some crazy gambit to bully Citizen’s Cab, et al, to ditch their meters for the proprietary Cabulous one?? Like, after this, they should be trusted with half of San Francisco’s taxis dependent of their “smart meter” for every flag, hail or dispatch, and metering EVERY ride!

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My column appeared in the S.F. Examiner on April 12, where I try to convey the concerns of the drivers about Flywheel pushing to replace our traditional taximeters with their proprietary backend system called TaxiOS, as well as Flywheel’s Uber-like behavior:

As the prime movers behind the Uberization of San Francisco’s taxi industry, Flywheel, the taxi-hailing app, and Flywheel, the taxi company, seem so intent on emulating Uber that they’re even taking a page out of deposed CEO Travis Kalanick’s “Guide to Being a Complete Dirtbag.”

Last Wednesday, Flywheel sent out a message informing drivers not affiliated with one of their color scheme partners that we’ll no longer be receiving orders through the app. Unless, that is, we switch to one of the six color scheme partners.

Drivers were understandably outraged that Hansu Kim, the owner of Flywheel, the app, and Flywheel, the taxi company, would actually kneecap 1,000s of drivers who rely on the app for part of their income, as well as stymie users who expect Flywheel to provide prompt service and, through this divisive act, traduce the industry in the public eye.

The following week, I wrote an addendum to make it abundantly clear that I was in no way trying to dissuade folks from using the app.

Despite my criticism, let me be perfectly clear:

Keep using Flywheel! Please!

As previously mentioned, Flywheel, or an app like it, is vital for the survival of the San Francisco taxi industry. That is what makes Hansu’s actions so deplorable. Not only is he threatening the livelihoods of taxi drivers, who are already struggling to survive in a market skewed to favor the competition, but he’s also jeopardizing the patronage of the small percentage of San Franciscans who still use cabs by limiting their access to prompt service.

I also pointed out that since removing a large number of drivers off the platform, there have been reports of longer-than-usual wait times. This was born out after Artur reconfigured my phone to continue accepting orders and the first guy I picked up in Noe Valley told me that the previous week he’d been forced to take Lyft three times because he couldn’t get a taxi through the Flywheel app.

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