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Electrify Taxis in New York City

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Electrify Taxis in New York City Electrify Taxis in New York City Zehua Guan, Zora Xiang, Beiwen Shen, Xuechun Bao, Bojun Chen ETaxi NYC May, 2020 Table of Contents I. Status quo in New York City ........................................................................................... 2 1. NYC taxi industry ....................................................................................................................2 2. Electrification progress ............................................................................................................4 3. Policy timeline ........................................................................................................................6 II. Stakeholders Analysis ................................................................................................. 7 III. Case Studies .............................................................................................................. 10 1. Shenzhen Case ...................................................................................................................... 10 2. Taiyuan Case ......................................................................................................................... 18 3. London Case ......................................................................................................................... 19 IV. Identified Problems ................................................................................................... 23 1. Charging Infrastructure ......................................................................................................... 23 2. Drivers' Willingness ............................................................................................................... 25 3. Profit Analysis ....................................................................................................................... 27 V. Recommended Solution ................................................................................................... 33 1. The pilot program ................................................................................................................. 33 2. Ancillary policies ................................................................................................................... 33 3. Infrastructure ....................................................................................................................... 34 4. Financial Support .................................................................................................................. 35 VII. Limitations and Further Research ................................................................................ 38 VI. Acknowledgement .......................................................................................................... 38 1 I. Status quo in New York City 1. NYC taxi industry 1.1 Scale of fleet By the end of 2019, New York city has a total number of 133,532 Vehicle Licenses and 197,998 Driver Licenses. There are 130 total business Licenses in the city, including 20 taxicab brokers, 71 Medallion Agents, 3 technology service providers and 6 E-hail providers. The fleet is composed of mainly three types of taxis, Medallion taxis (yellow taxis), Street Hail Liveries (green taxis) and For-Hire Vehicles. Medallion taxis and SHLs can both be hailed in streets, while SHLs cannot pick up customers in Manhattan below E.96th St. and W.110th St. FHVs can only provide pre- arranged services. FHVs entered the market in 2015, and has experienced an explosively increasing number of active drivers. By 2019, more than 83,000 drivers now drive for the three largest For-Hire Vehicle companies in New York City, which operate through the apps Uber, Lyft, and Via, these three companies account for over 91% of For-Hire Vehicle trips. Table 1 NYC Vehicle & Driver basic information1 Vehicle Daily average Active Drivers by Term Explanation Licenses by number of June 1st, 2018 20192 trips 2018 Medallion Yellow Cabs 13,587 29,362 296,295 Taxicabs Street Hail Liveries, aka Green SHL 3,004 3,979 26,029 Taxi (Boro Taxi) For-Hire Vehicles, including Black FHV 116,449 91,918 80,259 car, Livery and Luxury Limousine For vehicle type also includes Standby Vehicles in street hail Total service, Paratransit Vehicles & 133,532 125,259 402,583 Commuter Vans in Prearranged Services 1.2 Taxi fare mechanism 1 New York City Taxi & Limousine Commission, “2018 Fact Book,” February 14, 2019, https://www1.nyc.gov/assets/tlc/downloads/pdf/2018_tlc_factbook.pdf. 2 New York City Taxi and Limousine Commission, “2019 Annual Report,” https://www1.nyc.gov/assets/tlc/downloads/pdf/annual_report_2019.pdf. 2 NYC’s yellow and green taxis are currently using the Standard Metered Fare Mechanism for fare charges. The calculation starts with a $2.50 initial charge plus $1.00 per mile or per minute in slow traffic, added by $0.50 MTA surcharge, $0.30 improvement surcharge, $0.50 overnight surcharge during 8pm to 6am. Customers will also be charged an additional $1.00 for riding in rush hours on weekdays (4pm to 8pm), and a New York State Congestion Surcharge differentiated by taxi types if the trip starts or passes Manhattan south of 96th Street.3 Taxi trips between Manhattan and John F. Kennedy Airport are charged a fare of $52 regardless of total distance or time, plus the same MTA and improvement surcharge, while charged $4.50 for rush hour operation instead. Majority of taxi trips in NYC are within short distances. In 2018, 73.9% of yellow taxi trips were within 3 miles, and the number for SHLs was 70.0%. Few rides reach more than 10 miles, 5.9% for yellow taxis and 3.1% for SHLs. According to figure 1, we can see that the average taxi fare per trip reaches its highest in the latter half of the night and during rush hours in the afternoon. Yellow taxis charge higher during the night. And as FHVs are majorly operated by large app-based companies, data on their average fares remain hard to obtain. Starting in March 2018, TLC has been encouraging yellow and green taxis to explore new business models by setting the upfront fare pilot, like app-based taxis, with the participation of TLC-licensed E-Hail app companies. The pilot officially began on June 27, 2018, but adoption of the pilot seemed slow. Figure 1 NYC 24-hour average per-trip taxi fare fluctuation on Mondays in 2018 4 $19.00 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 11:00 15:00 19:00 10:00 12:00 13:00 14:00 16:00 17:00 18:00 20:00 21:00 22:00 23:00 Medallion SHL 1.3 NYC Taxi drivers NYC has a diversified group of taxi drivers. Over 50% of the drivers are from Bangladesh, the Dominican Republic, Pakistan, the US and India, while six languages are majorly spoken: English, Spanish, Bengali, 3 Congestion Surcharge: $2.50 for Yellow Taxi, $2.75 for Green Taxi and FHV, $0.75 for any shared ride. 4 New York City Taxi & Limousine Commission, “2018 Fact Book,” February 14, 2019, https://www1.nyc.gov/assets/tlc/downloads/pdf/2018_tlc_factbook.pdf. 3 Urdu, Russian and Simplified Chinese. Over 95% of them are male under the age of 50, and there has been a decreasing trend of average age. Among different types of taxis, 58.3%-63.8% of drivers live in Queens and Brooklyn, and in total over 85% drivers live in NYC. 2. Electrification progress 2.1 EV market Penetration NYC has a growing number of Electric Vehicles, dominantly private-owned. The number of electric vehicles on the road reached 9,172 in 2018. The number of Battery Electric Vehicles (BEVs) and Hybrid Plug-In Vehicles (PHEVs) are similar, majorly located in Manhattan and Queens. The most popular BEV models are Tesla Model S 705, Tesla Model X 619, Tesla Model 3 375, Chevrolet Bolt EV 195 and Nissan Leaf 152. Several State and City policies have worked in favor of this development, such as the Drive Clean Rebate providing NYC residents more than 14,000 rebates up to $2,000 for purchasing a new EV. Con Edison and National Grid, the two utilities operating in NYC, also provide Time-of-use (TOU) rates allowing residents to save money on electricity bills when they charge their EVs during off-peak hours (12 am to 8 am all year round), during which electricity is cheaper. Table 2 Number of Electric Vehicles in NYC 5 Brooklyn Queens Manhattan State Island Bronx Total BEVs 992 1362 1739 323 272 4688 PHEVs 827 1824 1077 548 208 4484 Total 1819 3186 2816 871 480 9172 2.2 Taxi-related regulations While there’s no certain restriction on SHL vehicles at present, all yellow taxis in NYC must use a vehicle choosing from the TLC-approved list of car models. Until the time this report is written, TLC has approved 10 hybrid vehicle models and only 1 EV model (Tesla Model 3) for yellow taxis. All yellow and green taxis are printed and marked by the only one authorized organization Memorandum of Understanding (MOU). 5 Atlas Public Policy, EValuateNY, May 3rd, 2020, https://app.powerbi.com/view?r=eyJrIjoiMjQwYTdhNTAtMmI5OC00ZmZkLWJiMDQtNjI0NDM0Y2E4N2QyIiwidCI6IjFiYjQ4ZGE0L TMxNDMtNDAzMS1iZGFlLWNjYzA0MDc1MDhmZSIsImMiOjF9. 4 Figure 2 Approved car model for NYC Medallion taxicabs 6 2.3 Charging infrastructure NYC is under the process of building charging infrastructure to serve the needs of its enlarging EV fleet. On the state level, the New York Public Service Commission has also initiated a Make-Ready Program providing incentives to light duty electric supply equipment and infrastructure (EVSE&I) for Level 2 and DCFC stations. This program would cover 90% of the costs
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