WARWICK - The Division of Public Utilities and Carriers today stripped a Providence taxicab company of half of its operating authority and levied against it the largest taxicab fine in agency history after it was discovered that the company routinely rolled back the odometers in its taxicabs to circumvent industry rules.

Four taxicab corporations that operate collectively as Yellow Cab acknowledged in a Settlement Agreement that there was sufficient evidence for the Division's Advocacy Section to prove that the odometer rollbacks did, in fact, take place. Moreover, the Agreement acknowledged sufficient proof that the companies had routinely picked up passengers outside their authorized operating territories and often charged passengers
illegal "flat rates," instead of rates based on a functioning taximeter.

Division rules state that taxicabs cannot be used beyond 200,000 miles or beyond 8 model years old (unless it qualifies for a one-year exemption). By rolling back the odometers on vehicles, Yellow Cab was able keep vehicles on the road longer than allowed, thereby reducing expenses considerably while transporting passengers in non-compliant vehicles.

"This constitutes the most egregious, habitual and willful act of non-compliance I've witnessed in my nearly 10 years with the Division," said Associate Administrator Terrence Mercer. "The pattern of behavior served to significantly change the competitive landscape among Providence taxicab companies and the odometer rollbacks additionally had the potential to put fare-paying passengers at risk."

The four companies involved - D&T Cab, Inc., White Rock Cab, Inc., Doris Cab, Inc. and Bobby's Cab, Inc., - operated collectively as Yellow Cab and held a total of five Certificates of Public Convenience and Necessity, which authorized a total of 12 cabs to be operated in Providence, Cranston and at T.F. Green Airport. The Settlement Agreement, which was accepted through a written order issued today by Administrator Thomas Ahern, strips the companies of all but one operating certificate which will authorize just six (6) cabs to operate in the same territories. The company also was fined $100,000 and placed on probation for five (5) years. Additionally, all cabs must be re-inspected by Division personnel before they will be allowed to be operated under the lone surviving certificate.

"The discovery of this outlandish behavior is the result of new auditing procedures in place at the Division that will help us uncover similar practices within the industry," said Mercer. "We hope these improved auditing policies and the significant punitive measures meted out in cases like this will serve as sufficient incentive for all taxicab companies to act in strict conformance with state law and Division rules."

-Division of Public Utilities and Carriers