Lethbridge City Hall, file photo. (Image: Lethbridge News Now)

By David Opinko

Lethbridge taxi companies request rate increases

Sep 9, 2022 | 3:47 PM

LETHBRIDGE, AB – A group of local cab companies say they need to charge more for their services in order to keep up with rising costs.

Royal Taxi, Fifth Avenue Cabs, A-Plus Taxi, and 94 Cabs have made submissions to the City of Lethbridge Community Safety Standing Policy Committee (SPC) at its September 8, 2022, meeting.

The changes requested by the companies include:

• Increasing the per 1/8 km rate from 31 cents to 37 cents (18% increase)
• Increasing the per kilometre rate from $1.92 to $2.25 (18% increase)
• Increasing the per minute waiting time rate from 75 cents to one dollar (33% increase)
• Implementing an $8 cancellation charge
• Implementing a $4 surcharge for van requests
• Requiring customers to pay upfront or leave a deposit until the end of the trip
• Abolishing a requirement that taxis must have lights on top of their vehicles

The companies say it has been more than five years since the last rate increase was approved in February 2017 and the costs of running their businesses are now much higher.

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“These 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,” reads a portion of a statement from the taxi companies.

Over the last half-decade, the companies’ submission states that insurance rates have increased by 90.24% since 2017, staff wages for dispatch are up by 28.57%, towing has increased by 42.86%, and repair shop rates are now 33.33% more expensive. While gas prices have fluctuated, fuel costs are also higher than they were in 2017.

94 Cabs Managing Director Michael Arend spoke at the SPC meeting and says the biggest challenge the local industry has faced in recent years is attracting and retaining drivers.

He adds that the number of career drivers who provide exemplary customer service and safe reliable transportation is declining. This, according to Arend, is largely because many people who drove taxis have instead opted to pursue careers as commercial truck drivers where they can earn more money.

Arend says the increased rates will allow them to offer employees competitive earnings.

Much of the discussion at the SPC meeting centered on whether or not the City of Lethbridge should be regulating taxi rates at all.

Committee member Ryan Parker stated his belief that the free market should decide how much taxi companies can or should charge for their services.

Arend, however, was of the opinion that rate regulation is important for the sake of consumer protection. He says it happens often in some other communities, for example, where people coming home from bars late at night will be charged significantly higher rates because they are left with no other safe options for getting home.

The committee has directed administration to look more into the matter of taxi rates and come back to city council in February 2023.