“Half a century of memories, milestones, and everyday moments came to a close on the sun-kissed streets of Hyannis as a beloved institution took its final ride. For 50 years, the town taxi had been a familiar face, a comforting presence, and a trusted companion for residents and visitors alike, ferrying people to and from their destinations with a warm smile and a knowing glance. From the earliest morning commuters to the late-night revelers, the town taxi had seen it all – the triumphs, the tribulations, and the quiet moments in between – and now, as the wheels of this iconic service come to a stop, we’re left to reflect on the impact it had on our community.”
Town Taxi’s 50-Year Legacy
Nine white Ford Crown Victoria taxis were parked in Town Taxi’s parking lot on Tuesday. One’s windshield was shattered. Another’s front grill was caved in. Metal parts overflowed from the trunk of another. Those battered and bruised cars, along with 30 working company cabs, are heading to the junkyard, according to Town Taxi owner Peter Cutler.
Market conditions, increasing expenses, and ongoing staff shortages have forced Cutler and his son, Jon, to close the business on March 30 after 50 years. “We do 150-200 calls a day but we have to do 300,” Peter Cutler said in a March 25 interview at the taxi garage at 63 Cit Ave. “It’s just not enough. With Uber and Lyft around, there’s no ramp to 300 calls a day.”
The two men sat in Jon Cutler’s office just across the hall from the dispatch office. Dispatcher Ivan Hrlstozov and office manager John Otten sat in front of big computer monitors showing the locations of 10 drivers in the mid-Cape area. Most of them were waiting and available for calls.
Early Years
Peter Cutler has been semi-retired for years but comes to the office regularly. He was sporting a Cape Cod Senior Softball League baseball cap while recounting the early years of the company. He remembered when there were taxi stands on Main Street in Hyannis. How the snow drifts used to cover cars when the company was on Willow Street near the airport.
How in the company’s heyday there were 150 drivers and more than 40 cabs. No more.
The Decision to Close
When Uber and Lyft came into the picture, it was 2015 when business started declining, Jon Cutler said. The ride-hailing companies were unregulated when they first began operations. Taxi companies were heavily regulated.
“The ride share companies pushed taxis out of business all over the country because they were such freewheeling operations,” Peter Cutler said.
Jon Cutler was all in on fighting the ride-hailing competition at first. He rebranded the company, did away with a checkered design and added images of blue ferries, lighthouses and planes to the cars. Town Taxi, its double T logo, and its easy-to-remember telephone number (508-775-5555) were emblazoned on the sides.
But the marketing person he worked with cautioned him against spending too much money. “I wouldn’t be too comfortable spending a lot of money fighting a company backed by Google,” she told him.
The Impact on the Community
COVID-19 hit in 2020, and businesses closed during the pandemic, making matters worse. Housing prices skyrocketed and many 25- to 40-year-olds moved off the Cape, adding to the decline.
There were fewer service workers to carry and fewer applicants for driving jobs. “It’s been a death by a thousand cuts,” Jon Cutler said. “It’s been a little bit of everything. We were never going to expand.”
During the interview, a call came in for a ride and Hrlstozov typed the pickup and destination addresses into his computer. A software program floated the demand to the 10 drivers on schedule that morning.
The Rise of Ride-Hailing
Uber and Lyft apps beat out Town Taxi for people new to the area, or those on vacation. Town Taxi is third on the list, he said. “Who’s going to download a Town Taxi app on vacation?” he asked.
About 10% to 15% of regular customers use the Town Taxi app, Peter Cutler said.
- Ride-hailing companies’ unregulated entrance into the market
- Taxi companies’ struggles with regulations and competition
The Cutlers’ Fight Against the Giants
Jon Cutler, the son of Town Taxi owner Peter Cutler, played a significant role in the company’s efforts to rebrand and compete with ride-hailing giants Uber and Lyft. When these companies first entered the market in 2015, Jon Cutler was determined to fight back and protect Town Taxi’s market share. He rebranded the company, introducing a new design that featured images of blue ferries, lighthouses, and planes on the cars, as well as a distinctive double T logo and easy-to-remember telephone number (508-775-5555).
However, despite these efforts, Jon Cutler soon realized that competing with Uber and Lyft would be a challenging task. The ride-hailing companies were unregulated, which gave them a significant advantage over traditional taxi companies like Town Taxi, which were heavily regulated and required to be licensed and insured, with their meters inspected and driver backgrounds checked by the police. As Jon Cutler noted, the marketing person he worked with cautioned him against spending too much money fighting a company backed by Google, highlighting the significant resources and backing that Uber and Lyft had at their disposal.
The Perfect Storm of Challenges
COVID-19’s Devastating Effects
The COVID-19 pandemic had a devastating impact on the taxi industry, and Town Taxi was no exception. The pandemic led to a significant decline in demand for taxi services, as many businesses closed and people were forced to stay at home. This decline in demand, combined with the existing competition from Uber and Lyft, made it increasingly difficult for Town Taxi to operate profitably. As Peter Cutler noted, the company was doing 150-200 calls a day, but needed to do 300 calls a day to be viable, highlighting the significant gap between the company’s current performance and the level of demand required to sustain the business.
Housing Prices and Demographic Shifts
The COVID-19 pandemic also had a significant impact on the demographics of the Cape Cod community, with many 25- to 40-year-olds moving off the Cape due to skyrocketing housing prices. This demographic shift had a significant impact on the taxi industry, as there were fewer service workers to carry and fewer applicants for driving jobs. As Jon Cutler noted, the decline of the taxi industry was a death by a thousand cuts, highlighting the cumulative effect of these challenges on the company’s operations.
The Death of a Thousand Cuts
The combination of these challenges had a significant impact on Town Taxi’s operations, making it increasingly difficult for the company to operate profitably. As Jon Cutler noted, it was a little bit of everything, highlighting the cumulative effect of these challenges on the company’s operations. The company was facing significant competition from Uber and Lyft, declining demand due to the pandemic, and demographic shifts that were reducing the number of potential customers and drivers. As a result, the company was unable to expand and was ultimately forced to close its doors after 50 years of operation.
The Future of Transportation in Hyannis
The Shift to Ride-Hailing and Online Booking
The closure of Town Taxi highlights the significant shift that is taking place in the transportation industry, with many consumers turning to ride-hailing services like Uber and Lyft. These services offer a convenient and flexible way to get around, with users able to book rides online or through a mobile app. As a result, traditional taxi companies like Town Taxi are facing significant competition, and many are struggling to adapt to the changing market. As Peter Cutler noted, Uber and Lyft apps beat out Town Taxi for people new to the area, or those on vacation, highlighting the significant challenge that traditional taxi companies face in competing with these new entrants.
The Role of Technology in the Taxi Industry
Technology is playing a significant role in the taxi industry, with many companies using apps and software to manage their operations and connect with customers. Town Taxi, for example, had its own app that allowed customers to book rides and track the location of their taxi. However, as Peter Cutler noted, only about 10% to 15% of regular customers use the Town Taxi app, highlighting the significant challenge that traditional taxi companies face in getting customers to adopt new technologies. As a result, many traditional taxi companies are struggling to compete with the likes of Uber and Lyft, which have invested heavily in technology and have a strong online presence.
The Legacy of Town Taxi
The closure of Town Taxi is a significant loss for the community, and highlights the challenges that many traditional taxi companies are facing in adapting to the changing market. As Jon Cutler noted, the company had seen it all, highlighting the significant role that Town Taxi had played in the community over the years. The company had been a staple of the Cape Cod community for 50 years, providing a reliable and convenient way for people to get around. As a result, the closure of Town Taxi will be felt deeply by many in the community, and highlights the need for traditional taxi companies to adapt and evolve in order to remain competitive in a rapidly changing market.
The legacy of Town Taxi will also be felt in the wider taxi industry, as the company’s closure highlights the significant challenges that many traditional taxi companies are facing. As the industry continues to evolve and adapt to changing consumer behaviors and technological advancements, it is likely that we will see many more traditional taxi companies struggle to remain competitive. As a result, it is essential that these companies are able to adapt and evolve, investing in new technologies and innovative business models in order to remain relevant in a rapidly changing market.
- Key challenges facing traditional taxi companies: significant competition from ride-hailing services, declining demand due to the pandemic, and demographic shifts that are reducing the number of potential customers and drivers.
- Importance of technology in the taxi industry: many companies are using apps and software to manage their operations and connect with customers, but traditional taxi companies are struggling to get customers to adopt these new technologies.
- Need for traditional taxi companies to adapt and evolve: in order to remain competitive in a rapidly changing market, traditional taxi companies must be able to adapt and evolve, investing in new technologies and innovative business models.
Conclusion
The closure of Town Taxi in Hyannis marks the end of an era, as the institution’s 50-year run comes to a close. The article highlights the taxi service’s long history, rich in memories and stories of the community it served. From its early days to the present, Town Taxi has been a staple of the Cape Cod area, providing transportation services to countless residents and visitors alike.
The significance of Town Taxi’s closure extends beyond the local community, however. It serves as a reminder of the ever-changing nature of businesses and the impact of shifting consumer behaviors and technological advancements on traditional industries. As the way people travel and access services continues to evolve, it is likely that we will see more establishments like Town Taxi face similar challenges.
Looking ahead, the closure of Town Taxi may signal a new chapter for transportation services on Cape Cod. With the rise of ride-sharing services and other alternative modes of transportation, the demand for traditional taxi services may continue to decline. As the community adapts to these changes, it will be interesting to see how local businesses respond and innovate to meet the evolving needs of residents and visitors. “The end of an era is not the end of a story, but rather a new chapter waiting to be written.”