Santa Monica cab drivers say hotel doormen demand bribes
Santa Monica officials are investigating claims that doormen at some of the city's finest hotels are seeking bribes from taxicab drivers in exchange for fares, a long-standing practice that is illegal under the beachside town's new taxi franchise system.
Before the new rules went into effect March 1, it was common for hotels to have contracts with taxi companies or for taxi drivers to give doormen tips to win business, said Don Patterson, Santa Monica's business and revenue operations manager.
Under the new rules, cabbies who pay bribes, known as "cookies," could face fines of $500 for the first violation, $700 for the second violation and $1,050 for the third violation. A fourth violation could lead to loss of their license to operate in the city. The five companies operating under the new system could face a fine of $2,500 for each violation and, ultimately, suspension of the franchise.
Patterson said the city was investigating complaints it had received from cab drivers and their employers and had "approached general managers at those hotels [mentioned] to remind them of the new rules."
The Santa Monica Daily Press reported that doormen at some hotels were demanding a roughly 10% cut of the fare.
Santa Monica is also studying a Los Angeles ordinance that prohibits hotels or their employees from extorting cookies, Patterson said, with an eye toward possibly regulating the hotel side.
Once served by as many as 550 taxis, 8.3-square-mile Santa Monica now has a cap of 300. The franchise system was intended to reduce traffic, help create a uniform fare system and ensure that drivers were well trained and cabs were environmentally friendly. With less competition, the city concluded, drivers could also expect to more easily earn a decent living.
Patterson said he expected Santa Monica police officers to begin enforcing the new rules this month.
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As a former Santa Monica cabbie, this is nothing new to me. It has been going on since I started driving in the seventies, and by the nineties was institutionalized by cab company owners who had their dispatchers remind the drivers to leave their "envelope" or "cookie" with whomever was responsible for calling the cab.
Posted by: mnemon | April 13, 2011 at 03:39 PM
Are the doormen union?
Posted by: fernando | April 13, 2011 at 04:06 PM
Ten percent was the going rate from ALL San Francisco doormen throughout the 1970s & 1980s. Then of course you also "bribe" the dispatchers to get a good ride.
Posted by: Zack | April 13, 2011 at 04:26 PM
That fits.
Posted by: bluenote | April 13, 2011 at 04:32 PM
Amazing! They can fine cab drivers for paying bribes yet they can't fine businesses for hiring illegal aliens.
Posted by: alan hart | April 13, 2011 at 04:47 PM
And Viarogosa takes free tickets . . . . . Tastes like chicken
Posted by: Anon | April 13, 2011 at 05:13 PM
isn't this just called "greasing the skids"?
in Washington DC the lobbyists do this all day long
Posted by: u know | April 13, 2011 at 08:49 PM
Typical People's Republic of Santa Monica thinking...
Outlaw the one who pays the bribe under coercion, but not the bribe-taker that coerces!
Posted by: Olden Atwoody | April 14, 2011 at 01:35 AM
This is common practice at hotels world-wide, not just Santa Monica or LA. And it is not a "bribe" in any way shape or form since a bribe is defined as an illegal payment to influence a political official. This is no worse than a finder's fee, or a commission. In fact, that is what I encourage MY drivers to call it when they give cash to the hospitality employees.
One hand washes the other. We tip them when they call us, and often, when we bring customers to them, they will compensate us. For example many of the bars will pay us a finder's fee for getting customers to them.
In my mind only 2 types of people oppose tipping hospitality staff: those who are too lazy or stingy to show appreciation to someone for choosing them. And self-righteous do-gooders who cannot stand the idea of anyone making money outside some rigid set of rules that the do-gooders themselves dream up according to some warped internal moral code.
If Santa Monica wanted better cab service, it would eliminate all restrictions on cab drivers and barriers to entry for cab companies and let a free market prevail. The cab drivers who hustle and the cab companies that provide the best service in such an environment would win out.
Posted by: Paul the Cab Driver | April 14, 2011 at 09:22 AM
Armenian cab drivers complaining of having to pay bribes - What a hoot! Ususally it's the Armenians demanding pay offs. I really don't feel the least bit sorry for them.
Posted by: Mort Goldman | April 14, 2011 at 12:45 PM
This is not an issue of someone being lazy or ungrateful .Its the LAW in SM now that the practice needs to stop. Not fare to a cabbie who does not want to be fined and/or lose his job that he doesn't get the ride he is in the taxi line for when his turn comes simply because he won't break the law.
So, a doorman should earn 200K a year and own houses throughout the country from the sweat of cabbies driving 12 hours a day and who are lucky to earn $600 a week?
Give me a break. The hotels should pay their doorman enough so they don't have to extort hard working taxi drivers.
Enough said
Posted by: Steven | April 15, 2011 at 10:02 PM