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Re-Order Vouchers On-Line
Rate Increase
NYS 2% Surcharge
Customer Complaint/Survey
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TO ALL OUR VALUED CUSTOMERS:

RE: RATE INCREASE (Effective April 15, 2000)

As you are aware, the operational costs in all industries have continually risen over the past few years. The black car business has not been exempt from increased expenditures necessary to deliver our service. In fact, the ground transportation industry is probably being hit the hardest of all. In addition to significantly increased costs, the limousine sector is faced with a second major problem. The available labor pool from which we manned our ranks has shrunk considerably. Recent immigrants who first trained driving yellow cabs had traditionally migrated to our fleets. Drivers perceived the transition to the black car industry as a source of greater income, more prestige, and a safer work environment. However all that has changed:
  • New tightened U.S. Immigration laws have cut off the source of new labor. The yellow cab fleets from which we first drew our franchisees are themselves short 12-15%;
  • After expenses a shift taxicab driver can take home more than a black car driver;
  • Increased vehicle replacement costs, insurance hikes, increased repair costs, RUNAWAY FUEL PRICES, increased licensing fees and the continued zero tolerance policy by ticket agents are chasing drivers out of the industry in record numbers;
  • Lack of health coverage, not available in the limousine industry, has continued to push current and potential drivers into other trades.
Against this economic climate, we have been trying to both maintain our fleet size of 700 vehicles while we continue to improve upon service:
  • Elite is supplying the heavy subsidies required for franchisee health benefits. A marketing agreement was entered into in 1999 with the International Association of Machinists Union for that primary purpose
To keep the fleet intact, continue to grow, and provide Elite’s service to you, there is an urgent need to put money back into the drivers’ pockets. To do that, Elite has no choice but to pass along a rate increase for its franchisees, effective April 15, 2000. Simultaneously, to maintain the subsidies for health benefits and affordable vehicle maintenance, the service charge will be raised from $3.00 to $4.00. We are in the process of printing a new rate book that will be delivered to you shortly. Rate increases are as follows:
  • Rates will increase 8%;
  • Manhattan only rates will increase a minimum of $2.00;
  • Borough and Out of town rates will increase a minimum of $3.00;
  • WAIT TIME remains $30.00 per hour;
  • TIMES CALLS in all 5 boroughs are $40.00 per hour;
  • Elite will remain as one of the only firms not to add either a RESERVATION CHARGE or an OUT OF TOWN pickup surcharge.

Thank you for you understanding the necessity of these price adjustments. If you have any questions regarding the rate increases, feel free to contact your account representative at Elite. Please know that we value your continued patronage and look forward to our continued relationship in the years ahead.

Sincerely,

President