“This is one way of fighting the illegal taxis operating on Saipan,” Syed said.
Syed said his group’s 40 members will offer a 50 percent discount which, he added, will benefit both the Duty Free Shop Galleria and the taxi drivers.
DFS management has suspended its commission program for taxi drivers that bring hotel guests to the Garapan shopping center.
Syed said his group understands DFS’ decision because “everybody is affected by this economic slump.”
DFS said it will suspend the commission program until Dec. 31.
But the group of taxi operators stationed at the hotels disagreed with Syed’s discounted fare scheme, saying this will only cause confusion among the passengers and encourage illegal taxi operation.
Pathan M. Abdul, one of the taxi drivers operating at hotels, said they have to maintain the regular fare rate to uphold their identity as legitimate taxi operators.
But he said they may ask the government to set a more feasible rate in light of the bad economy.
Syed said their discounted fare is only temporary — until Dec. 31 of this year.
He said the Department of Commerce allows them to “negotiate” the fare rate as long as it is lower than the regular rate.
Their group, he added, is determined to offer their services to the community by coming up with an attractive and affordable rate.
“The 50 percent discount fare will be much lower than what the illegal taxi operators are charging,” he said.
An illegal taxi cab usually charges $3.
A licensed taxi’s flag down rate is $2.50 with an additional 75 cents per quarter of a mile.
The commerce department’s Division of Enforcement and Compliance Director David S. Palacios, in a separate interview, said taxi drivers offering lower rates are not violating the law.
“They have the right to negotiate a lower price. That’s good for everybody but taxi operators must be careful — they might lose their business for not getting enough money,” Palacios said.
Pathan has asked DFS management to consider its decision but Syed’s group will only discuss the issue with DFS after an “observation period.”
DFS management declined to comment. The store’s president, Marian Alden-Pierce, was still off-island.
According to Palacios, “I can’t blame DFS since everybody is suffering right now and that’s their business decision.”
