Calgary Taxis: 383 new plates & 8.1% rate increase

[Looch City]

As per CBC:

http://www.cbc.ca/news/canada/calgar...mber-1.2774341

Officials are adding 383 new plates, which will go to taxi drivers. The plates will be owned by the city so brokers can't acquire them.

The new cabs must also be on the streets at peak times, such as weekend evenings, as well as in December and during the Calgary Stampede

...

City council voted to immediately put out one-third of the new taxis — or 126 cabs — so they'll be on the streets by December.

Council has also approved an 8.1 per cent hike in taxi rates that will take effect immediately. That means the cost of a kilometre-long taxi trip has increased from $4.85 to $5.27, while a 10-kilometre trip has increased from $18.80 to $20.27.

Uber please come rescue.

[RedMileDJ]

nm

[skudr248]

Cabbies be raving! Though I can't imagine some of the #### cabbie's have to deal with every weekend.

[calgarywinning]

Another weekend with no Cabs downtown. How does this ensure there will be cabs for people during this time period when bars let out, etc.

[Ozy_Flame]

Wait, they add more cabs to the service to meet demand, and then raise the price of a taxi?

That's like getting the pizza delivery you finally ordered show up late but having the delivery man charge a jerk tax just to stuff it to you.

[ken0042]

Originally Posted by Ozy_Flame

Wait, they add more cabs to the service to meet demand, and then raise the price of a taxi?

That's like getting the pizza delivery you finally ordered show up late but having the delivery man charge a jerk tax just to stuff it to you.

No, it's like the pizza place that is always late telling you they have raised the price on future orders so they can hire enough drivers to meet demand.

Basically with more cabs on the road, the average cabbie will have to work more to have as many fares. Now he makes more per fare, so he can afford to have fewer customers.

[Ozy_Flame]

Originally Posted by ken0042

No, it's like the pizza place that is always late telling you they have raised the price on future orders so they can hire enough drivers to meet demand.

Basically with more cabs on the road, the average cabbie will have to work more to have as many fares. Now he makes more per fare, so he can afford to have fewer customers.

So basically they're doing a favor to who then? Cabbies? Doesn't seem like Calgarians are getting any better deal. The chances of finding a cab are slightly better at a cost of more out of our pocket.

In a normal free market, greater supply should bring the price down.

Of course, no such market exists in the taxi system sense of the word.

[ken0042]

I'm not sure "slightly" is the term I would use. It's an increase of 25% more cabs. Also due there being fewer trips per driver available, more cabbies will be inclined to work the late nights. The few times I have been able to snag a cab late at night, they tell me they'd rather not have to deal with the drunks.

Also my understanding is these new licenses come with a requirement of certain late night hours.

[calumniate]

Supply and demand, simple economics

I imagine they had to agree to an increase to get the existing drivers to agree to it. Anyway it could be worse (can think of only one example being the Paris mafia cab ring)

[4X4]

Originally Posted by ken0042

I'm not sure "slightly" is the term I would use. It's an increase of 25% more cabs. Also due there being fewer trips per driver available, more cabbies will be inclined to work the late nights. The few times I have been able to snag a cab late at night, they tell me they'd rather not have to deal with the drunks.

Also my understanding is these new licenses come with a requirement of certain late night hours.

These new licenses should also come with a requirement of knowing how to drive.

[Ozy_Flame]

Originally Posted by ken0042

I'm not sure "slightly" is the term I would use. It's an increase of 25% more cabs. Also due there being fewer trips per driver available, more cabbies will be inclined to work the late nights. The few times I have been able to snag a cab late at night, they tell me they'd rather not have to deal with the drunks.

Also my understanding is these new licenses come with a requirement of certain late night hours.

Interesting. I'd like to know how much fewer trips cabbies will be making to still make it worth their while. My guess is the majority of Calgarians live in the suburbs, so when the cabs drop them off and come back in to downtown on Friday night, their normal number of fares gets reduced if there is theoretically more cabs on the road, making it less likely they'll be making as much as before. Somehow I don't think jacking up the price on a customer by $2-$5 is as beneficial as servicing 1-5 additional fares per night.

I guess what I'm taking from this is - cabbies want to take less people but make more money? Seems like its designed to benefit them, not really Calgarians. But I guess time will tell once that extra 25% is on the road.

Of course, Calgary is growing at a rate of around 3.5% per year, so in about five years, assuming no more taxi licenses are issued, we could be back to a similar service concern as there currently is now.

[Table 5]

Originally Posted by ken0042

Basically with more cabs on the road, the average cabbie will have to work more to have as many fares. Now he makes more per fare, so he can afford to have fewer customers.

Not to be cold, but why should the City even care about that? Why do we need to ensure that driving a cab is a fruitful and sustainable career? Nobody is forcing people to be cab drivers. If the industry I'm in doesn't support my life and family, I find a new industry.

The City doesn't give two craps about other people in low-skill jobs, like the night janitor at your office, or the senior at Walmart, or the cashier at the grocery store (Safeway is one of the biggest employers of new Canadians). What would you say if the City raised the price of vegetables to support your local cashier? And they also controlled the amount of cashiers available. And then when new ones were hired, raised the price of vegetables so the existing cashier could check out an hour earlier? That would be weird, no?

The city should ensure that cabs meet safety requirements and that drivers pass basic training/safety courses. The rest? Let the market figure it out. No subsidizing lifestyles, no protection of licenses that have been turned into investments. This doesn't have to be so complicated.

[The Yen Man]

Originally Posted by Table 5

Not to be cold, but why should the City even care about that? Why do we need to ensure that driving a cab is a fruitful and sustainable career? Nobody is forcing people to be cab drivers. If the industry I'm in doesn't support my life and family, I find a new industry.

The City doesn't give a crap about other people in low-skill jobs, like the night janitor at your office, or the cashier at the grocery store (Safeway is one of the biggest employers of new Canadians). What would you say if the City raised the price of vegetables to support your local cashier? And they also controlled the amount of cashiers available. And then when new ones were hired, raised the price of vegetables so the existing cashier could check out an hour earlier? That would be weird, no?

The city should ensure that cabs meet safety requirements and that drivers pass basic training/safety courses. The rest? Let the market figure it out. No subsidizing lifestyles, no protection of licenses that have been turned into investments. This doesn't have to be so complicated.

Totally agree. They're treating cabbies like public workers. Last I heard, they're a private business run for profit. Why the hell is the city looking out for them? I guess money makes the world go round huh?

[Ozy_Flame]

Originally Posted by Table 5

The city should ensure that cabs meet safety requirements and that drivers pass basic training/safety courses. The rest? Let the market figure it out. No subsidizing lifestyles, no protection of licenses that have been turned into investments. This doesn't have to be so complicated.

You know what the funny part is? Car2Go was able to waltz right into the Calgary market - basically providing a cab you drive yourself. But the minute you have a chauffeur it gets worlds more complicated.

I agree with Table 5, the government should just be maintaining safety requirements and figuring out laws that everyone can abide by. They should not be in the market of controlling an industry that, IMO, can easily be corrected with market forces. And the Taxi commission should just be almost a "better business bureau" type of organization that ensures good practice and helps Calgarians get the best service possible. Not act like a labour union.

Uber is on the outside looking in. And wrongfully so.

[ken0042]

Originally Posted by Table 5

Not to be cold, but why should the City even care about that?

I agree- that they shouldn't. However the current system is a huge mess; given that many drivers have paid tens of thousands for their current cab license. I don't know what terms and conditions came with that license, but I'm sure it isn't as simple as making them all null and void.

I just don't see a better solution. It has to be one that offers some protection to the current business owners who have already made an investment in a vehicle and a license, but also one that works in the interest of public service.

[GP_Matt]

I have a theory that the status quo is maintained because the people who take cab trips are tourists and young people and neither group votes or donates to politicians.

[bizaro86]

This thread has a lot of complaining for something that is fundamentally an improvement. It isn't as good as going full out free market, but it's a start, and should help things. Anything that takes power/money away from the brokers and gets more cabs on the road is a positive to me.

[Table 5]

Originally Posted by ken0042

I agree- that they shouldn't. However the current system is a huge mess; given that many drivers have paid tens of thousands for their current cab license. I don't know what terms and conditions came with that license, but I'm sure it isn't as simple as making them all null and void.

I just don't see a better solution. It has to be one that offers some protection to the current business owners who have already made an investment in a vehicle and a license, but also one that works in the interest of public service.

Here's my totally uninformed, moron-on-the-street, 3-step strategy.

1) Refund all current license owners their original license fee...but only what they paid to the City, not any perceived increase in value on the black market, or that they paid to some middle-man to rent the license. Protecting the long term investment strategies of a special interest group is not in the best interest of Calgarians. The City doesn't guarantee anyone else's investments either.

2) Charge a new license fee of $100-200 bucks a year (or whatever it takes for the City to do a background check on you and to inspect your car). No limits on licenses...you pass the checks, and you have the cash, you're good to go.

3) Sit back and let the market do it's thing. No special cabs for airports, no set hours, no set fees. Chances are the prices and the level of service will end up pretty close to what makes sense for everyone involved. It sure can't be much worse.

[Huntingwhale]

What happened to that Uber thing going on? For a ''world class city'' like Calgary that always seems to score so high on the rankings, we have the crappiest transportation services. It's somewhat of a step in the right direction, but nothing to write home about.

[Ozy_Flame]

Originally Posted by bizaro86

This thread has a lot of complaining for something that is fundamentally an improvement. It isn't as good as going full out free market, but it's a start, and should help things. Anything that takes power/money away from the brokers and gets more cabs on the road is a positive to me.

I can't deny it's a step in the right direction, but IMO, the price increase just smacks of catering to the Taxi commission who are trying to control the market, and, ergo, is not designed to benefit Calgarians to the best it could be. It's also a small improvement within the current parameters of the Taxi/City relationship, which is troubled to begin with.