City Staff Suggests Reduction in Flat Taxi Fare

This article was last updated on April 16, 2022

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Toronto staff have come up with the idea to reduce the flat fare of stepping into a cab in Toronto from $4.25 to $3.25, in order to allow conventional taxi companies to compete with ride-hailing app, Uber. The officials made the recommendation in a municipal licensing and standards report released Wednesday morning.

City councillors have previously voted to review the rules governing the ground transportation industry in Toronto in order to ensure provision of level playing field between traditional taxis and Uber. However, Taxi companies are stressing that UberX drivers are placing passenger safety at risk and enjoy benefits of being no regulations and restrictions as the rest of the industry. Whereas there is a solution about that too. City staff also recommended to place Uber under a new licensing category entitled the Transportation Network Companies. The companies would ensure to provide requirements for drivers for commercial liability insurance, and pay your annual permit fees and consent to background checks.

During the recent public consultation sessions this summer, City staff has asked all members of the taxi industry to report being "significantly” impacted by Uber operations. The staff alleged that "whether it was drivers stating they are making less income, or fleet operators indicating that they cannot rent taxicabs, or brokers stating they cannot get drivers, there was consensus that Uber's operations are having a negative impact on regulated taxicabs and limousines." The report read that "there is a strong sentiment amongst Toronto residents that people should be able to choose whether they want to use Uber or licensed taxicabs. A majority of residents feel that having both Uber and taxicabs provides Toronto with a competitive marketplace.”