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Green Cab Requirements

Boston Taxis Convert to Hybrids by 2015

— September 5, 2008 — Autos
Life as a Boston cabbie is about to get harder: the city recently passed a measure that requires all cab drivers and operators to convert their fleets to hybrid vehicles by 2015. While this is certainly an eco-friendly decision, it’s not a popular one among Beantown cabbies.

Most Boston cab drivers currently drive Crown Victorias that cost between $6,000 and $7,000. Purchasing a new hybrid Prius, however, costs around $24,000--a further blow to an industry whose workers have already been crippled by high gas prices.

Since Boston cabs must be retired after six years, drivers won’t get much of a financial break buying a used hybrid for the new green fleets. Moreover, insurance for these hybrid cars typically costs more than for Crown Vics, and a Prius’ trunk is far less spacious than that of the cabs most drivers are used to driving.
Trend Themes
1. Hybrid Vehicle Adoption - As cities increasingly look to adopt eco-friendly transportation policies, there will be an increased demand for hybrid and other alternative fuel vehicles.
2. Insurance Innovation - As insurance costs for hybrid vehicles continue to remain high, there will be opportunities for disruptive innovation within the insurance industry to create more affordable and flexible policies for fleet operators and individual drivers.
3. Sustainable Infrastructure - As cities begin to prioritize sustainable transportation infrastructure, there will be opportunities for innovative startups to provide services, technology and infrastructure to support this transition.
Industry Implications
1. Automotive Manufacturing - As fleets of taxis and other commercial vehicles convert to hybrid and electric models, there will be significant opportunities for automakers to expand their market share and develop new models for these segments.
2. Transportation Services - As demand for green transportation grows, there will be opportunities for transportation services companies to develop new offerings and solutions that meet the needs of customers, such as electric vehicle rental services and charging networks.
3. Environmental Consulting - As cities and municipalities adopt policies to support sustainable transportation, there will be opportunities for environmental consulting firms to offer expertise and guidance on implementing these initiatives in an effective and efficient manner.
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