City report recommends lowering taxi fares by $1

TORONTO – The city’s licensing committee is looking to even out the playing field for Uber and taxi operators.

A report released by Municipal Licensing and Standards committee on Wednesday morning outlines recommendations to be considered at the next licensing committee.

The report asks city council to amend Toronto Municipal Code and reduce the base entry fare by $1, from $4.25 to $3.25 effective Nov. 1 2015.

The taxi industry has been battling with the city and requesting that amendments be made ensure cabs and private-vehicles for hire (Uber) would operate under the same umbrella.

READ MORE: Intact insurance working with Uber on new products for ridesharing

“What we are embarking on here should not be viewed at all – or presented by anyone who is being straight forward about this – as a struggle between the cab industry and Uber because that’s not what this is about,” Toronto Mayor John Tory said.

“This is about giving the travelling public what they already have, what they continue to have going forward.”

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The report provides recommendations that are specific to companies like Uber, which are referred to as Transportation Network Companies.

The suggested regulatory requirements for TNCs include proof that they have obtained adequate insurance to operate as a TNC, criminal background screening, driving record screening, motor vehicle inspections, and electronic record keeping, in addition to others that can be found in the full report online.

“It’s completely unfair to the taxi industry and this report needs to be abolished,” said Sam Moini, spokesperson for Toronto Taxi Alliance.

“If you have a TNC license the taxi industry ceases to exist that’s a fact. We are already suffering. Nothing will change with this report.”

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The report also recommends issuing 100 new taxicab licenses.

“If we are truly level the playing field we would all provide the service under the same rules and regulations,” said Kristine Hubbard, operations manager at Beck Taxi.

“This is a taxi service they’ve recognized that in the report and to suggest there would be an alternative licence for some other service – they are not offering another service. It’s a taxi service and that’s the bottom line.”

City Councillor Gord Perks said that numerous steps need to be taken before the recommendations could go into effect, starting with council approval.

“When we do that, we close the legal loophole Uber’s been operating under,” he said, adding that the city would then need to ask the province for a solution to the issue of insurance for drivers.

“If we find out yes they can, then we get to the third step, which is we write a set of rules on how they operate. I’m telling you City Council will not approve a set of rules that’s different from what taxi drivers have to meet because that’s just unfair.”

Councillor Jim Karygiannis said the situation was “rewarding offshore billionaires in other countries” and released a statement shortly after recommendations were made public.

“The taxi industry, whether it is brokerages, owners, operators, fleet operators and garages are all regulated and have a set of rules that we, the City, has imposed on them,” the statement said.

“Allowing Uber to regulate itself is like allowing the fox in the chicken coop.”

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Karygiannis has been a vocal opponent of Uber and has continually advocated for the taxicab industry.

READ MORE: Nearly half of those polled support Uber in Toronto

“This could result in over 15,000 people, who are legitimately working in the industry, to lose their livelihood and eventually be forced to find alternative work or go on social assistance,” he said.

“It is time for Uber to be fully regulated as a Taxi Brokerage firm or leave Toronto.”

A spokesman for Uber Canada said the report showed a “understanding of how ridesharing, consumer choice and smart regulations can benefit Torontonians.”

“Having facilitated more than 4 million ridesharing trips in Toronto in the last year, Uber has become a choice local riders and drivers depend on,” said Xavier Van Chau.

“Given this scale, we recognize the need to be regulated and Uber is fully committed to work in partnership with the City in helping adopt and implement ridesharing regulations.”

The ground transportation report will be brought to Municipal and Licensing standards on Wednesday Sept. 16.