Shuttle Services
Escalating gas prices are affecting students who don’t drive due to increasing rates of local shuttle services.
In the last two months shuttle services that transport students to Kansas City International Airport have raised their prices. Jeff’s Shuttle, which services 25 cities in Kansas, has raised its rates twice in the last month.
“Due to the rise of gasoline and escalating interest costs, we have had to increase shuttle transportation costs in the last month by about 7 percent. This is the second time in a month that we have had to raise costs,” owner Jeff Pennington said.
A shuttle from Lawrence to KCI was $45.57 and is now $49. This rate is not including the 20 percent gratuity that Pennington recommends for the chauffeur.
“Drivers lease the vehicles from me. The drivers make most of their
living from their tips,” Pennington said.
Jeff’s shuttle operates from KCI airport. The clientele of Jeff’s Shuttle ranges from business professionals, families with small children and students.
Some KU students who use Jeff’s Shuttle are now carpooling because they can’t afford the difference.
“I don’t have a car at KU. I was using Jeff’s Shuttle to get to KCI. It’s ironic that I didn’t get a car because I can’t afford gas and now I can’t even afford a shuttle,”
said Betsy O’Brien, Lawrence junior.
According to the Natural Resources Defense Council, U.S. gasoline consumption accounts for 11 percent of world oil production, intensifying the nation’s economic and political vulnerability.
Harry G. Shaffer is a professor of economics at KU and author of the book “American Capitalism and The Changing Role of Government.”
Shaffer said, “Gas is an inelastic product because there is such a great demand for it. People will continue to pay high prices for gas because they have to. If there is availability of substitutes in the future, this may change.”
Ground Transportation Inc., 301 Maple St., is the only shuttle service in Lawrence. Owner Reynaldo Puentes has raised shuttle prices twice in the last month.
“Our business has really been affected by gas prices. We were charging $35 and we now charge $40. We have lost some clients, especially students. If business keeps slowing down we may have to shut down,” Puentes said.
Shuttle drivers at Ground Transportation are independent contractors. For each trip to KCI, shuttle drivers receive $25.
Drivers go to the airport every two hours, 10 times a day. In November, Puentes will cut back on gas by only going to the airport every two and a half hours everyday.
“Though the shuttle drivers rent the cars from me, I pay for all the gas. We use Midland Farm because we want to support local companies even though it’s more
expensive,” Puentes said.
Midland Farm is a local company that supplies farm equipment. They sell
Puentes gas for $2.93 a gallon.
Changes in shuttle rates are making some students rethink their means of
transportation. Out of state students like Nora Burt, Chicago sophomore, are relying on friends to drive them to the airport.
“Last year when I was going home for the holidays I had to find people to carpool with because the shuttle was too much money. With higher rates this year, I really can’t use a shuttle service,” Burt said.
Technology improvements that are expected to increase the efficiency of motor vehicles could change the high demand for gasoline.
“In the future I think the population may increase their use of smaller cars and hybrids. This will affect the amount of gasoline used. Until we find a way to use substitutes for gas, prices will continue to rise,” Shaffer said.