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Companies Object to Debit Card Contract

Most major San Francisco cab companies have complained to the U.S. Department of Transportation over a contract to implement a debit card system for paratransit scrip. The companies allege violations of federal conflict of interest rules, misrepresentations to the industry in order to gain its support and mismanagement by Muni, which is responsible for the paratransit program. The contract was originally awarded to GPS Data Solutions (GPSDS), run by Ed Burke of Luxor Cab. But cab companies charge that after GPSDS failed to obtain a necessary bond for the project, it struck a deal with Digital Dispatch Systems (DDS) by which DDS obtained a controlling interest in the contract and became the sole supplier of in-cab equipment for the system. Companies claim they were misled to believe they would be able to use equipment of their own choice so long as it was compatible with the system.
The companies’ complaint charges that “if the current plan were implemented, taxi companies would be handcuffed to an obsolete technology and to a single vendor’s proprietary equipment and services.”
Muni is paying for the project’s equipment. It expects to realize substantial savings for the program through lower administrative costs and reduction of fraud.
In earlier letters to cab companies and to the project manager for the debit card program, DDS defended its arrangement with GPSDS. It claims there was nothing amiss in its gaining a controlling interest in GPSDS and that companies still have the option of obtaining their own hardware or software for the project at their own cost.
United Taxicab Workers supports the debit card program but opposes the exclusive use of DDS equipment. UTW believes that cab companies or taxi drivers who own their own cabs should be able to purchase subsidized equipment of their choice so long as it is compatible with the debit card program.