Why Haven’t Toronto Taxi Fares Dropped?
Monday, January 5th, 2009
I’m sure that we all remember how the gas prices in Toronto just sky rocketed last July. At one point they reached $1.38 per litre. Toronto’s taxi industry lobbied for a fare increase stating that they couldn’t make a living with gas prices so high. In response, the drop fare was increased from $3.00 to $4.00 and the kilometer rate went from 25 cents for every 170 metres to 25 cents for every 155 metres.
Gas prices in Toronto are now at their lowest in years. Are the taxi prices being rolled back to the prices pre the fuel surcharge increase? NO! The Toronto Taxicab Industry Association says that the fares will not be lowered because of rising insurance rates and increased operating costs. The economic downturn is being blamed as the reason that less people take taxis.
Perhaps it’s time that the Toronto Taxicab Industry Association took a closer look at the drivers. Regardless of the prices, people don’t want to take taxis. It’s not the price. It’s the service, or lack thereof. The investigation into the taxi drivers at Union Station is indicative of the situation all over the city.
Did the taxi industry conveniently use the high gas prices as a means to get a fare hike quickly approved? If in truth it was a fuel surcharge increase, then it should be rolled back immediately. That is exactly what WestJet did. In September it eliminated its fuel surcharge. That is the correct and ethical thing to do. However, according to Howard Moscoe, chair of the city’s licensing committee, there are no plans to revisit the taxi surcharge.
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