Taxis in Waterloo region could soon increase starting rate by $1

Taxis in the region could soon charge a starting rate of $4.50 per ride as councillors approved an amendment during a committee meeting Thursday to increase the price by one dollar.

The Waterloo Region Taxi Association, which is made up of the region's four taxi companies, asked for the increase last August.

But Waterloo Taxi vice-president Robert Heinbecker told the committee his company was against the increase and it should be introduced at a later time.

"Six months ago, when the request was proposed, the economy was in a better state and there were no new competitors in the market place," Heinbecker said, referring to Lyft, which launched in the region in November.

The Region of Waterloo oversees local cab companies and sets the maximum base meter rate, which is the amount showing on the fare box when a person gets into a cab. Heinbecker said he believes individual cab companies should be allowed to the set the rate themselves.

"That drop could be something that we could lower it to something we find appropriate or increase it to something we find appropriate depending on the circumstances, time of year, all these different situations," he said.

Tom Hudacin, the region's manager of licensing and enforcement services, said the bylaw allows cab drivers to charge less on the starting rate should they want to, meaning the $4.50 rate is the maximum cab drivers can charge to start.

Cab drivers face high operational costs

Mike Sima, who has been in the taxi industry for 27 years and is president of United Taxi, told CBC News he was in favour of the dollar increase but agreed it should have been brought in at a later date.

He said increasing the starting rate by a dollar could help drivers lower their operational costs.

Commercial insurance rates for cab drivers can range from $11,000 to $15,000 a year, he said. Drivers also need to take CPR courses and have a police check done every year, which adds to their operating costs. 

"It will increase your income, so it will compensate for your expenses, at least for gas expenses," Sima said.

"When you look at the gas prices today, they're at $1.70. You fill up every second day if you have a hybrid. If you have a regular car sometimes you have to fill up every day. Our operating costs, they are very high."

He said cab drivers also can't compete with companies like Uber or Lyft, who are more popular and pay significantly less for insurance. 

"Business is not the same. Before, you were able to handle 35 to 40 calls a day. Now you're down to 15 calls a day," he said.

Sima said he would like the region to implement a flat starting rate for all cab companies locally to even the playing field.

"Otherwise it becomes a competition where it's not beneficial for anyone," he said.