A new report by city staff recommends that Toronto’s base rate for cab fares be reduced from $4.25 to $3.25, in a bid to allow traditional taxicabs to compete with the popular ride-hailing app Uber.
The report -- written by Municipal Licensing and Standards -- also recommends Uber be bound by regulations like having the proper insurance for vehicles, vehicle inspections and background checks for drivers.
Mayor John Tory announced his support for the proposed measures Wednesday, saying it puts Toronto “on the right path forward.”
The price reduction in cab fares is regarded as an important step in keeping the taxi-cab industry viable.
Companies like Beck have been pushing for lower fares. Beck released a statement Wednesday morning saying “with prices that reflect current fuel costs, everyone wins and everyone remains safe.”
Tory said research conducted for the report suggests consumers are more likely to take a cab if a dollar is taken off the initial fare.
“I believe the recommendations presented today will allow us not only to adapt to the changing realities of our city, but also to ensure public safety is protected and that a regular taxicab industry remains viable in the future,” he said.
Ensuring public safety, Tory said, means “bringing Uber inside the law and regulating it.”
Wednesday’s report suggests updating the definition of a taxicab broker to include technology-based services like Uber.
The ride-hailing app would fall under a newly created licensing category: Transportation Network Companies, or TNC.
Tory said Uber will be regulated differently but equitably to the traditional taxicab industry, and these measures are a step forward in maintaining the public’s safety and ability to choose their method of ground transportation.
Yet not everyone is excited about the reforms.
“If we continue allowing Uber to exist as we propose, this is going to put a lot of these people out of business and we’re going to see a lot of people change occupations or even go to welfare status,” said Councillor Jim Karygiannis.
Due to its failure to implement the same regulatory system for both Uber and the taxi-cab industry, Sam Moini, owner of HPM Taxi, suggested the report creates a “Wild West” environment for ground transportation in Toronto.
Uber has operated in Toronto since 2012, and has been attacked by both Toronto city staff and the taxi industry for being unregulated, unlicensed and operating on an unfair playing ground.
Yet Tory believes Uber is here to stay, asking if Uber’s critics believe Toronto would be “successful at turning back a technology that’s been adopted and embraced by 100,000s of people in this city?”
The app’s popularity, Tory said, makes regulating Uber all the more important.
He also suggested he doesn’t view the situation as a battle between Uber and traditional taxicab industry. “Research suggests that there’s a place on a continuing basis going forward for taxi cabs and Uber…” he said.
The measures outlined in the report will be discussed at a committee meeting on Sept. 16.
