Taxi Fares Dropping by $1

Stepping into a Toronto taxi got a little bit cheaper as of Sunday, with base fares for licensed cabs dropping to $3.25 from $4.25.

The city’s cab industry has been locked in a heated battle with city officials and ride-sharing service Uber, which the industry says is an illegal cab service that competes unfairly.

“This will make moving around the city more affordable for the public, and it will help the traditional taxicab industry compete”. UberX’s base fare is $2.50.

But a few cab companies say while the reduced fare will help traditional taxis attract more customers, the move will ultimately cost more for taxi drivers who have to pay licensing and insurance fees that Uber drivers aren’t subject to.

“While Toronto taxi and limo drivers are very clear on the fact that they must carry an OPCF 6A Endorsement on their insurance policy in order to carrying paying passengers, Uber and the media have repeatedly made statements that led UberX drivers to believe this endorsement and extra expense is not necessary. They are switching to Beck, Uber, and other companies, but it’s the same people”, said Mohammed Mahmood. “If you add a dollar, they will come, because they have the income”.

London’s largest training school for black cab drivers is to close next month thanks in part to the rise of taxi app Uber.

Regular Uber rider Steven Ng said the price drop isn’t likely to steer him back to cabs.

Uber says it would employ thousands of drivers if allowed to expand into Buffalo, Syracuse, Rochester and other areas where the ride-hailing service is now prohibited from operating.

At the September 30 meeting, the city also asked Uber to suspend UberX operations in the city until the new regulatory framework comes into effect.