Cab companies, and their customers, feel the pinch of rising gas prices

By By PAT BAILEY

Story Created: Jun 13, 2008 at 4:38 PM EDT

Story Updated: Jun 13, 2008 at 10:28 PM EDT

UTICA - As gas prices continue to rise in the area, everybody, including some local businesses who depend on fuel are feeling the pinch.

The Courtesy Cab Company, in Utica, has been in business for 34 years. And now the price at the pump is starting to alter how they do business.

"Our minimum fare is $7," said Leonard Millbower, owner of Courtesy Cab. "The minute you get in the door of the cab, it's $7. Where before, in 1974. it was a dollar."

The main reason for that are these rising gas prices. 

The owner of the Courtesy Cab Company says when he started his business, in 1974, gas prices were a mere 49 cents a gallon. 

"Back in 1974, we were spending $2,000 a month for gas," Millbower said. "Now we're spending approximately $6,000 - $8,000 a month for gasoline."

Millbower says the only thing he can do is apologize to his customers for the increase in prices. But he says even though there is a slight increase, the company is still taking a hit.

"Being the oldest cab company in the city, we have to more or less absorb 90% of the increases," Millbower said. 

Millbower says generally the busiest time for the company is the first of the month. However if gas prices continue to climb, and he has to continue to raise rates, there is a question has to if they will be a busy time again. 

 
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