Santa Monica has always been a city that cared about the well being of its residents. Maybe that's why it finally created a Taxicab Franchise system to limit the number of taxicabs on the streets and serving the residents. The City intended to limit the players in the taxicab game so they can protect their residents, but did they really accomplish anything.
Metro Cab was one of the 5 companies that won the franchise to operate in Santa Monica Taxi
. They promised the world to the City Council yet when we look at them now, less than a year later they delivered nothing; in fact, they are in so much trouble that they are looking for someone to take them over before they lose the only thing of value, their franchise.
But before we explore where this potential deal is heading and the pitfalls it has for the City, let us explore some of the things that Metro Cab promised the residents and what they actually delivered:
As reported by The Santa Monica Daily Press, Metro promised the City a system that would guarantee that their drivers are complying with drug testing regulations. After all this will protect the residents of Santa Monica. This is important, yes? Well, to date Metro has not complied with this very crucial requirement. The result, the residents are riding with drivers that may be drug addicts or alcoholics. The city of Santa Monica wanted limited franchisees to better control the taxi operation but look at Metro Cab they failed miserably yet they continue to operate.
The Santa Monica Daily Press exposed that almost 1/3 of the Metro Fleet is owned by individuals, in direct violation of the franchise agreement yet they continue operating. These individuals, in direction violation of the franchise agreement yet they continue operating. These individuals are, in fact, bandits sanctioned by Metro management. Metro is an entity and can not, in its current state, be operated by individuals. Metro has deceived the City council and the citizens and continue to flaunt their elicit operation.
Now Metro Cab is looking for a lifeboat, they are financially upside down and they are sinking fast. They need a cash infusion, a new front, a new beginning. What they want is to continue to deceive to the City Council by selling the operation to another company while maintaining business as usual.
All Yellow is a small company owned and operated by Ali Nasrollahy. They operate in the south bay and Culver City. However, financially they are very weak and are unable to take care of their existing operations.
Ali is Reza Nasrollahy's brother. Reza is the founder and CEO of Global Paratransit, a company that operates an access contract. Reza along with Sam Grinberg are no strangers to skirting rules and regulations, in fact, they have done so many times convincing the regulators that they should be allowed to operate. Reza and Sam are no strangers to operating on the wrong side of the law. Their previous involvement with cab companies resulted in lawsuits against them for fraud and various other deceptive practices.
Now the City Council wants to approve All Yellow to acquire Metro Cab and All Yellow will continue to operate under the Metro Cab franchise but will anything really change.
If the City Council approves All Yellow they will be approving a continuation of the deception and failure that Metro Cab is. In fact, Slim Said and Fouad Saneh, the current owners of Metro Cab, are in talks to continue to retain a percentage of ownership and continue operating the failing franchise. What will change is the name and an addition of less than reputable people such as Reza Sam and Ali. The vicious cycle will continue, Metro will again promise the world to the City yet deliver nothing.
If approved the residents will remain unprotected from unscrupulous management, in fact, it will be the very same management that has deceived the residents before. So what will change, nothing at all, it will be business as usual except under the guise of “Under New Management”.