Cab companies ask council for rate change amid increased costs

By Al Beeber - Lethbridge Herald on September 10, 2022.

Herald photo by Al Beeber Cab companies have requested a rate raise as they say they are facing increase costs.

LETHBRIDGE HERALDabeeber@lethbridgeherald.com

Four city taxi companies are asking city council to let them raise their cab fares.

The request was made by representatives at Thursday’s meeting of the Community Safety Standing Policy Committee of Lethbridge city council.

In their request, the four companies say the increases are needed to address inflation, particularly the increased costs of gasoline and insurance as well as vehicle repairs, towing and transmissions.

Royal Taxi, Fifth Avenue Cabs, A-Plus Taxi and 94 Cabs say the last rate hike was approved in February 2017.

They are asking for several specific increases under bylaw 6.15 (6) a. They include:

* A change from 31 cents to 37 cents per one-eighth kilometre, an 18 per cent increase;

* A change from 75 cents to one dollar per minute of waiting time, a 33 per cent increase;

* A cancellation charge of $8;

* A change from $1.92 to $2.25 per km, an 18 per cent increase;

* Institute a surcharge of $4 for van requests.

The companies also want council to remove the requirement for lights on top of cabs, saying they are easily damaged and can be lost, adding permanent attachments damage vehicles and depreciate their resale value.

They also want all customers to be required to pay upfront or leave a deposit until trips are completed while allowing drivers to waive this requirement for known customers. This request is due to drivers having problems getting paid for rides with no recourse available to them.

The SPC voted unanimously to recommend administration provide a response on proposed bylaw changes that would be needed to implement the requests and report back to the SPC by Feb. 9.

The SPC consists of chair Mark Campbell, deputy mayor Jenn Schmidt-Rempel and councillors John Middleton-Hope and Ryan Parker.

Speaking at the meeting were Michael Arend of 94 Cabs and Cheryl McMillan of Fifth Avenue Cabs.

In their submission to the SPC, the companies say “the changes are imperative for maintaining the current level of service that the taxi industry provides to the City of Lethbridge that residents have come to expect.

“There are several significant costs to the taxi industry,” their submission states.

As an example, they say the price of gas has jumped 87.38 per cent from $1.03 per litre in 2017 to a high of $1.93 this year.

Arend said at the meeting that Lethbridge tends to have higher fuel prices than other places in the province, noting that prices here are among the fastest to rise, and the slowest to drop. McMillan noted drivers pay for their own fuel and those prices impact their income.

Insurance costs for taxis have risen 90.24 per cent, dispatch wages have jumped 27.57 per cent and repair shop rates are up 33.33 per cent, the four companies also report.

The submission states the availability of taxis depends on the companies hiring and retaining drivers who are competent and professional.

“Unlike many other industries who can simply offer wage increases and charge higher prices for goods and services, this industry is regulated by the local government and is unable to increase its prices to allow for a competitive income.

“The industry operates within regulated fares which directly impacts drivers’ income potential. As a result, qualified professional drivers are migrating to other industries with more favourable hours, less risks and better remuneration,” say the companies.

Because of this, all of them are finding it more difficult to recruit and keep drivers, they say, with the number of career drivers declining.

The requested rate increases are higher than in other Alberta cities, citing the higher gas prices in Lethbridge.

They say historically Lethbridge cab companies have charged more than in other Alberta cities because it has fewer “high fare” rides and needs higher rates on shorter trips to be viable. A typical trip here is between $13 to $15 while drivers in such cities as Red Deer and Medicine Hat have benefitted from longer rides.

The submission says that because of the oil industry, rides in Red Deer average more than $300 while Medicine Hat drivers have benefitted due to trips to CFB Suffield.

Parker questioned why the City is even in the business of setting cab fare rates. Regulatory services manager Duane Ens explained that larger cities such as Calgary and Edmonton have taxi commissions which would be an expensive undertaking for a community like Lethbridge, noting other similar sized cities in Alberta manage fare rates the same way this city does.

Not only does the City set the rates, he said, but it ensures meters are correctly aligned, calling regulation of the industry a matter of consumer protection as well as safety and quality.

Arend and McMillan said the changes are needed so cab drivers and companies can continue to sustain themselves in light of rising costs.

With the economic situation they say recruitment of drivers is difficult.

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