It’s time to have a “serious conversation” about deregulating the taxi industry in Guelph, believes Mayor Cam Guthrie, who feels the “archaic” and “old school” process may have passed its expiration date.
“To me, it doesn’t make much sense to continue this way,” Guthrie said, noting cab companies require council’s approval to change their rates, be that up or down. “This is not how free-market businesses need to operate.
“I think most people would agree with me.”
Guthrie compares the taxi licensing process to forcing restaurants to get council’s approval before increasing the price of hamburgers or hair salons wanting to discount haircuts rates.
Residents looking to travel within the city have numerous options at their disposal, from private vehicles and cycling to transit, as well as taxis and ride-sharing services such as Uber and Lyft.
“The end consumer … is the one who decides which method to use,” Guthrie said, noting the taxi industry has been deregulated to varying extents in other municipalities.
In Barrie, for instance, council created two license streams – one for rideshare drivers and another for “drivers for higher operations.” Both contain no limit to the number of cars/drivers, come with insurance and vehicle safety requirements and allow companies the “freedom to set tariff rates, including discounts and price surges.”
While the taxi industry is regulated in Guelph, there are no such requirements put on ridesharing services.
Efforts to reach local cab companies for comment weren’t immediately successful.
During its committee of the whole meeting on Tuesday, council unanimously approved fee rate increases for local cab companies. If ratified during an official council session, the drop fee will increase to $3.20 from $3, while the per distance charge goes to $2.60 from $2.40 and the fee for wait time hits $34 per hour from $32 per hour.
“I think this increase is well-warranted and I think it’s a very reasonable increase,” said Coun. June Hofland.
This would be the first taxi rate increase since 2010.
Deputy CAO Colleen Clack-Bush told committee members the increase was requested by local cab companies.
Councillors James Gordon and Mark MacKinnon were absent from the committee meeting.
