Driven to succeed old-fashioned way

DRIVER’S SEAT: Michael A. Tartaglione founded Corporate Transportation in Providence with one vehicle and one driver – himself. Above, Valerie Viens, assistant general manager of Corporate Transportation, dispatches vehicles. / PBN PHOTO/DAVID LEVESQUE
DRIVER’S SEAT: Michael A. Tartaglione founded Corporate Transportation in Providence with one vehicle and one driver – himself. Above, Valerie Viens, assistant general manager of Corporate Transportation, dispatches vehicles. / PBN PHOTO/DAVID LEVESQUE

Michael A. Tartaglione has lived a familiar version of the American dream, working long, hard hours in Rhode Island’s taxi industry while starting at the bottom in 1976. Now he owns the place.
“In 1984, I bought my first [car] unit and kept it for a number of years. “I worked at a number of other places until I realized that I would like to have my own business,” he said. “In 1998 that’s what I did: one car and one driver.”
Corporate Transportation Inc. has two divisions, the sedan and the taxi services.
The sedan division specializes in intermodal transportation, giving passengers a ride to the airport, train and bus station. It accounts for about 75 percent of the company’s income.
He said business has been “OK,” due in part to an economy he hopes will rebound. Cars are bought every 12-18 months and are usually driven in excess of 100,000 miles before it’s time for a new vehicle. Due to mileage constraints, vehicles need to be purchased and not leased.
“Unfortunately we are a convenience and not a necessity. What we try do is that when things get a little slow, I try to do a little more advertising,” he said.
The service is open all day on weekends and holidays. “The only time we close is when weather conditions do not permit us to travel,” Tartaglione said.
As for the perception that driving a taxi is dangerous, nothing could be further from the truth, according to Tartaglione. “That’s a rarity,” he said of drivers being put in dangerous situations.
He says his taxi drivers are independent contractors who usually speak English as a second language. “These are good people that need to make a living but because of that [language] barrier are limited in their ability to apply for other jobs,” he said.
The company is regulated by the state’s Public Utilities Commission’s Motor Carrier Division.
“The PUC wants to work with us, they want to keep us in business,” he said. “They also need guidelines for those companies that don’t follow the rules. They also need some enforcement so that everyone complies with them.”
For example, all employees except cab drivers must be paid as a staff member, not a contractor. According to Tartaglione, some companies don’t follow that regulation. “I have figured that doing business the correct way costs me about $150,000 per year more than my competitors,” he said. “Anyone with a public [license] plate needs to be an employee.” That usually means vehicle drivers, managers, marketers and administrative positions. He said payroll taxes cost his company $1,200-$1,500 per week and worker’s compensation costs are $30,000-$40,000 per year. With some companies, he said, these costs are too much, so drivers are instead given a percentage of their take for the day and the company pockets the remainder. The state misses out on taxes from both the employee and the company.
His biggest expense, he said, is the maintenance he pays to keep the vehicles running and looking good. “I work with BTS Tire and Service Stores in Pawtucket; it’s more expensive than doing it myself but it’s more convenient. You can depend on them to do a quality job while still charging a reasonable price and getting the job done on time. With cars running around the clock, that’s the most important thing,” he said.
Tartaglione currently has permission to operate five taxies and 13 total vehicles. Expansion to improve revenue and money flow is not as easy as just purchasing another car; it’s highly regulated.
That’s why he spends a significant amount of time and money on both radio and television ads. “I think the customers call us after seeing the ad. These are people that generally use this type of service but have never ridden with us,” he said.
In addition to the economy, Tartaglione has other business concerns to monitor, such as the rising price of gasoline. So far, it hasn’t been a problem. “The PUC is allowing us to apply a gasoline surcharge which is about $1.50 for any fare over $10 or more. Trips under that amount are just charged an additional 75 cent flat rate,” he said. “Right now that’s enough to cover the cost.”
He is hesitant to ask for fare hikes because competitors might not follow his lead, instead undercutting his fares.
“We haven’t had a rate hike in quite some time,” he said. “I would like to gather some of the owners, but now we’ll be wrestling with the new 7 percent sales tax that just went into effect for businesses that provide services.” •

COMPANY PROFILE
Corporate Transportation Inc.
Owner: Michael A. Tartaglione
Type of Business: Statewide taxi and executive car service
Location: 417 Smithfield Ave., Providence
Employees: 23
Year Established: 1998
Annual Sales: WND

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