Limo fare plan still too rich for UberBlack

Car service urges city council to let market determine pricing

Don’t expect Uber to roll out its high-end black car service in Calgary anytime soon.

The San Francisco-based company says proposed changes to lower fares for limousine and luxury sedan services don’t cut deep enough for it to introduce UberBlack to Calgarians.

“We urge council to consider that there be no minimum fare and that the market could set it,” said Xavier Van Chau, communications lead for Uber Canada.

“As a business, we could then evaluate within the market what price point would best serve those drivers in terms of fares and riders in terms of cost of trip,” Van Chau said.

Earlier this week, a city committee narrowly approved recommendations by staff and the Taxi and Limousine Advisory Committee to ease bylaws around limousine and luxury sedans.

Councillors voted 4-3 to axe an existing 30-minute pre-booking rule, slash the minimum fare rate from $85 to $25 and expand the types of vehicles considered a sedan or limo. The new minimum fee rate wouldn’t apply for limos or sedans operating within the airport zone.

The proposed amendments would also remove the current hourly rate for limos and introduce a new distance-based fare scheme, based on a $2.10 per kilometre fee. Drivers would calculate that distance using a GPS-enabled smartphone app.

The recommendations go before council Monday for a final vote.

Calgary brokers and cabbies were divided on the proposals during the committee meeting.

Some argued the amendments would foster a more competitive market and improve customer service. Others maintained it would lead to an uncontrolled industry and push many cabbies already struggling to make a living out of business.

Xavier said consumers are looking for more transportation options at an affordable price, though some would be willing to pay a higher price for a premium service when demand is high.

“While we see some measure of interest here to modernize rules to allow for more transportation alternative, unfortunately, the measures that staff and TLAC recommended to city council won’t allow an entrant like Uber to come to market,” he said.

The company offers its UberBlack service in Toronto, where it charges a base rate of $8, plus 50 cents per minute and another $2.70 per kilometre.

Calgary’s chief livery inspector defended the proposal to set the minimum rate for limo and luxury sedans at $25 and charge a $2.10 per kilometre to protect taxi drivers and riders.

“We set the rates for taxis and other service providers to ensure that, during periods of high demand, it acts as a form of consumer price protection against price gouging,” said Mario Henriques.