Hailing a cab could some come with higher fares in Bradford.
Earlier this week, council’s committee of the whole recommended changes to Business Licensing By-law 2014-70, which would scrap the town’s taxi fare schedule and instead allow each broker to choose their own rates.
Brokers would still be required to follow the same structure that is currently in place, meaning they would need to set prices for the first 200 metres, each additional 200 metres and for waiting time, but each broker could choose their own prices for each category, instead of adhering to the town’s maximum allowable prices.
“It’s a business and the business should be setting their own fees. I don’t see an issue with them trying to be competitive,” Ward 5 Coun. Peter Ferragine said.
The decision came in response to a report authored by Brent Lee, the town’s director of corporate services, which itself came in response to a broker’s request to review and increase fares.
According to the report, the broker cited increased costs for gasoline, insurance, maintenance and vehicle prices as the basis for the review and requested a 20 per cent increase to fares.
In response, the report says staff examined various models and fares in different municipalities and solicited opinions from the three brokers in town, each of whom suggested a different approach.
These formed the three options staff presented to council:
- Increase metered rates by 20 per cent for both the first 200 metres and each additional 200 metres thereof;
- Allow each broker to establish their own taxi fares; or
- Maintain existing taxi fare (no change)
Council voted in favour of recommending Option 2.
“The way I see it is, that it takes away a bit of red tape, but also keeps the oversight there from town staff,” Deputy Mayor Raj Sandhu said.
According to the report, the town would still require brokers to inform riders of rates by posting a tariff card within each vehicle, and require the broker to submit an application to the town on their proposed fares when renewing their broker licence each year.
Lee clarified that there should be one consistent application form for fee structures and that the town would ultimately have the final decision to approve the submission and grant the fares.
“This is a new trend in this sort of industry where municipalities are moving in this direction. It allows the owner their own control over the economics of their business and it provides some resiliency for our purposes,” Lee said.
Ward 3 Coun. Ben Verkaik noted the omission of ride-sharing services like Uber from the report.
“We don’t license Uber, so how will that fit in going forward? I always think they should all be under the same umbrella and the same bylaw,” Verkaik said.
Lee explained that the purpose of regulating cabs and fares is for consumer protection, and when it comes to services like Uber, the town doesn’t receive enough complaints about unfair practices or overcharging to merit regulation.
“There’s almost zero concerns locally with Uber. Licensing and regulating Uber is a little different than your traditional taxicab,” Lee said.
Ward 4 Coun. Nickolas Harper wanted to know if this would allow brokers to charge as much as they want or if the town would still have a limit “so we protect our consumers and the residents that want to use this type of travel.”
“Whether the council chooses a 20 per cent increase or allows the broker to set their own rates, that would be the maximum amount in which they’re allowed to charge. What we’re trying to avoid is overcharging of our patrons,” Lee said.
Recommendations from committee of the whole are considered for approval at the next regular council meeting.
