State’s Failure to Reimburse Rainbow Cab and Limousine Forces It to Discontinue Cab Service

Image via Pete Bannan, Digital First Media.

West Chester’s Rainbow Cab and Limousine is permanently discontinuing its cab service beginning Aug. 1, after more than three decades in business. However, the company’s limousine business will continue, writes Fran Maye for the Daily Local News.

According to Gibbs Tolsdorf, Rainbow Cab and Limousine’s owner, the decision is due to the state’s failure to equitably reimburse the company for senior shared rides to the Philadelphia International Airport. This will result in 18 people being laid off by the company.

Rainbow Cab was providing rides to the airport as part of the state’s Shared Ride program, which subsidizes rides for senior citizens by 85 percent.

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Ten years ago, the reimbursements for the program were reevaluated, and while the cap was raised to $42.50 on other trips, the maximum reimbursement for trips to the airport remained at 85 percent of the $30 fare.

According to Tolsdorf, this $17 deficit per trip has cost the company $1.9 million over the last decade.

“We have been forced into the unenviable and regrettable decision to end senior shared rides and local cab service,” said Tolsdorf.

Read more about Rainbow Cab and Limousine in the Daily Local News here.

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