In the bigger scheme of things, setting up a rickshaw company should be relatively straightforward, so why has Alki Michael been threatened by taxi drivers and stymied by red tape? )
ALKI Michael is trying to set up a rickshaw company in Paphos.
He should be hailed as a green entrepreneur, and his business, Cypshaw, as heralding the new generation of eco-friendly enterprise. Instead, he has been hounded by taxi drivers and thwarted by local authorities.
An English Cypriot, originally from Famagusta, he lived for several years in Surrey where he was involved with the advertising side of a rickshaw business. The 43-year-old returned to Cyprus nine months ago, full of enthusiasm and looking to implement a plan he’d had for a while – to introduce the humble rickshaw to Paphos.
“I am an entrepreneur and a healthy, hungry man looking for changes and environmentally friendly projects for my kids to grow up with,” he says.
His business plan is simple – 33 rickshaws, one main seafront road in Paphos, and lots of tourists looking for a cheaper, more novel option than a taxi to get into town. The main money generated from this endeavour comes from advertising on the rickshaws; the drivers keep the fares for themselves. “My bikes will carry advertising for local bars, restaurants, property developers, car sales and hopefully corporate bodies such as Keo, Lanitis, Coca-cola, McDonalds etc,” says Michael.
However, the animosity towards this new enterprise from taxi drivers was swift and violent.
“I expected a little bit of confrontation,” says Michael, “but nothing on this sort of scale.”
According to Michael, last Saturday night, two riders were met by a mob of 50 angry taxi drivers, who threatened to break the bikes and beat the riders up. The Head of the Paphos Taxi Drivers Association, Andreas Zacharias, admits the presence of the taxi drivers but denies that threats were made.
The Paphos taxi drivers claim the business is competing with them in a time of crisis – Zacharias says they have seen an 85 per cent drop in profits this year. Michael counters that his company cannot be considered competition, due to the rickshaws’ short range of travel, less than 2km.
The dispute is highlighting a series of problems for the fledgling company.
One issue that keeps cropping up is the legality of the rickshaws. The taxi drivers claim they do not have permits to ride on the pavements. ”I have had lawyers on this project since January 2009 and have covered all angles of expediting this business legally before I brought the rickshaw to Cyprus,” Michael told the Sunday Mail.
Yet the issue still seems to be causing a degree of confusion amongst the Paphos authorities.
“I mean, what is a rickshaw?” a member of the Paphos police force mused. “Is it a bike, is it a taxi, what is it? The legality of the rickshaw depends on what it is being used for. If it is as a bicycle, that is legal. If it is carrying passengers to make money, it may not be. As far as I am aware the issue is being looked into but there is no answer yet.”
The correspondence between Michael and the transport police, the Mayor and various other official bodies also suggests that authorities are rather at a loss to cope with the cheery yellow import.
Apparently there is no legislation concerning rickshaws as they do not have a legal precedent in Cyprus. This is despite the fact that in 2006 two young Polish students attempted to start up a similar company in Ayia Napa.
Demetris Koutras, a lawyer who represented the two men in 2006, insists that rickshaw businesses are legal, and has little patience with those who state otherwise. “They are lying,” he says simply.
The other major issue being bought up is that of road safety. Both the police and the Taxi Driver’s Association expressed concern about this.
“Motorists in Cyprus are not used to the presence of bicycles on the roads. It has been noticed that wherever there has been an increase in bicycle use, there has been a corresponding increase in serious and fatal road accidents, with cyclists being implicated,” states the letter sent to Michael from the Justice Ministry.
The lack of a proper cycle path was also cited as a problem. Indeed, Zacharias has claimed that “ten women had already complained that they nearly got run over.”
In this climate, it is unsurprising that insurance for the rickshaws was also a problem to get hold of.
“I have tried numerous insurance companies to insure me for 3rd party liability in Cyprus with all refusing.” With the help of his lawyer Michael finally found a company, DEMCO, to underwrite a policy covering him up to €75,000 liability.
“This was also an obstacle and something I was informed was not necessary here in Cyprus but I wanted it, and feel more secure that I have it regardless of the cost. I believe it was a moral obligation to have it.” Michael also has applied for VAT and Social Insurance. He has ID cards for his riders, is in negotiations with CyDive in Paphos to have 1st Aid training for at least one out of every five riders, has a Code Of Conduct for his riders and an Eco Charter for his product.
“I do not know what else I can do. This surely shows that I am not a passer by trying to make a fast buck.”
A further problem that occurred was when all of Michael’s original riders left the company after being allegedly scared off by the taxi drivers’ threats. Only three stayed.
The drama is now beginning to subside though. New riders have been recruited, and all papers have finally been certified as in order. The three-wheeled bikes have now been given the green light to go ahead, and started business on Thursday night.
Alki Michael is cautiously optimistic, but frank. “The riders are nervous,” he said.
Those who followed the fate of the rickshaw company in Ayia Napa will understand his concern. Amongst widespread allegations of police bias in the case, the business was driven out of town at the end of a conflict in which reportedly eight rickshaws were broken and two employees roughed up.
Happily, though, none of Michael’s workers have so far been physically attacked. “Not yet. I stress the ‘yet’,” he adds with a grim chuckle.
