This document analyzes the "Taxi of Tomorrow" program in New York City which mandates the use of the Nissan NV200 as the new standard taxi vehicle. It examines the financial and environmental impacts of different taxi models and ownership structures. The analysis found that long-term leasing models and hybrid vehicles like the Toyota Prius make the most economic sense. However, without incentives, switching all taxis to the NV200 does not make financial sense and would increase greenhouse gas emissions compared to hybrid options. The potential use of electric vehicles like the Nissan Leaf is also discussed as a future alternative.

1. Taxi of Tomorrow
Where are we going? Carlos Coello
Jessica Esposito
Scott Miller
Chuck Samul
Stefano Vrespa
Spring 2012

2. A g e n d a
• Background
• Financial Analysis
• Environmental Analysis
• Taxi of Yesterday?
• Our Conclusions
• The Wild Card
• Food for Thought

3. Background
• History
• Stakeholders
• New York City
• TLC
• Riders
• Drivers
• Owners
• Handicapped
• Car Manufacturers

4. t h e fl e e t
F O R D “ C r o w n V i c t o r i a ” - 5 8 % F l e e t
FORD “Escape Hybrid” - 26% Fleet
T O Y O TA “ S i e n n a” - 9 % F l e e t
TOYOTA “Camry” - 4% Fleet
TOYOTA “ Pr i u s” - 2 % Fl e e t “Taxi of Tomorrow” NISSAN “NV200” – 100% (2016)

5. t h e fl e e t
To y o t a “Prius” – 51 MPG
FORD “Escape Hybrid” – 34 MPG
TOYOTA “ C a m r y” – 2 2 M P G
TOYOTA “Sienna” – 17 MPG
FORD “Crown Victoria” - 16 MPG “Taxi of Tomorrow” NISSAN “NV200” – 25 MPG

6. Fi n a n c i a l A n a l y s i s
• 5 vehicle models
o Mileage per gallon (16 – 51)
o 64,600 average miles per year
o Maintenance and repair costs ($3200 to $4900)
o Straight line depreciation
o Salvage value = $0
• 4 ownership models
o Cab lifespan = 3 to 5 years
1 . O w n e r O p e r a t e d o n l y
o Gas cost (owner - driver)
2. Owner Operated and leased
o Shift duration and Drivers per cab
3 . F l e e t -­‐‑ t y p e
• Future vehicle 4. Long-­‐‑term lease
o Same as the current fleet models

7. Data
Fi n a n c i a l A n a l y s i s
Ownership Model
Taxi type

8. Fi n a n c i a l A n a l y s i s
$200,000
$180,000
NPV -­‐‑ 5 years -­‐‑ 1 car
$160,000
Ownership models
$140,000
NPV -­‐‑ Owner Operated
NPV -­‐‑ Fleet Type
NPV -­‐‑ Long term leasing
$120,000
$100,000
$80,000
FORD FORD TOYOTA TOYOTA TOYOTA NISSAN
"ʺCrown "ʺEscape"ʺ
"ʺPrius"ʺ
"ʺSienna"ʺ
"ʺCamry"ʺ
NV200
Victoria"ʺ

9. “Medallion lease model”
How it works
Medallion owner leases right to use medallion
o Benefits:
• Revenue certainty
• Lower business risk
Driver leases medallion and owns the car
o Still pays for gas
o Benefit:
• Drives incentive to raise the number of Hybrids – Lower emissions

10. “Medallion lease model”
The result
Using the most favorable conditions:
o Lowest Net Income among “Fleet type” or “Long term lease”
ownership model
o Taxi with highest NPV
o Minimum gross revenue driver
Incentives required

11. Environmental impacts
• Assumptions
o Owner operated:
• “Prius” and “Escape”
o Linear phase out of current fleet
o “Non explosive phase out”
o Transition to NV200 starting in 2013
• Data inputs
Just a bunch of numbers (CO2 equiv./mile)
o Miles per gallon
o Grams of CO2 equiv. per mile
o Average miles per cab per year
C r o w n V i c t o r i a 4 9 4
P r i u s 1 9 3
We i g h t e d Av e r a g e 4 2 5
N i s s a n N V 2 0 0 4 3 1

12. Environmental Impacts
8,000
14,000
7,000
12,000
# of taxis currently in operation
6,000
Taxi Model
10,000
# of Nissan NV200
FORD "ʺCrown Victoria"ʺ
5,000
8,000
FORD "ʺEscape"ʺ
4,000
TOYOTA "ʺPrius"ʺ
TOYOTA "ʺSienna"ʺ
6,000
3,000
TOYOTA "ʺCamry"ʺ
NISSAN NV200
4,000
2,000
2,000
1,000
-­‐‑
-­‐‑
2012
2013
2014
2015
2016

13. Environmental Impacts
?
400,000
356,000
350,000
354,000
Tons CO2 equiv. / Taxi model
Taxi Model
Total Tons CO2 equiv.
300,000
352,000
FORD "ʺCrown Victoria"ʺ
250,000
350,000
FORD "ʺEscape"ʺ
200,000
TOYOTA "ʺPrius"ʺ
348,000
TOYOTA "ʺSienna"ʺ
150,000
TOYOTA "ʺCamry"ʺ
346,000
NISSAN NV200
100,000
total CO2 eq. emission
344,000
50,000
-­‐‑
342,000
2012
2013
2014
2015
2016

14. Taxi of Yesterday?

15. Our Conclusions
Economic Sense To:
1. Prefer Long-term leasing model
2. Choose hybrid for Owner-driven model
Makes No Economic Sense To:
1. invest in hybrid if not Owner-operated
2. To switch to Nissan NV200
Lack of Incentives:
For the “Medallion lease model”
Taxi of Tomorrow will increase Green House Gas emissions

16. e Wild Car(d)
Nissan Leaf Electric Vehicle Pilot Program (2012)
Nissan e-­‐‑NV200 Fleet (available 2017 +)

17. Food for thought
“Taxi of Tomorrow” NISSAN “NV200” – 25 mpg
“Yellow” NV200 – 1.5dCi (EU version) – 54.3 mpg

18. Thank you
Carlos Coello
Jessica Esposito
Scott Miller
Chuck Samul
Stefano Vrespa
Spring 2012