Toronto Star

Mississaug­a taxis seek compensati­on from city

Drivers say pilot allowing Uber, Lyft to operate has diminished licence value

- ALI RAZA MISSISSAUG­A NEWS

Taxi drivers are asking the City of Mississaug­a for $50,000 per licence in compensati­on for income loss after ride-sharing companies like Uber and Lyft were given the green light to operate.

Owners of the limited number of Mississaug­a taxi licence plates issued in this city are demanding the compensati­on in direct response to the municipali­ty’s Transporta­tion Network Company (TNC) pilot project, which permitted Uber and Lyft to operate on city roadways.

“The city mandated endless regulation­s, set pricing, and limited supply of taxicabs, and allowed licences to be transferab­le for compensati­on thus creating market value,” taxi licence plate owner Sami Khairallah wrote in a letter to the city’s Public Vehicle Advisory Committee. “The city’s decisions on how to manage the TNCs has directly resulted in the loss of 70 per cent of the taxi market share,” he added.

Mississaug­a launched its pilot project on July 1, 2017, which formally permitted Uber and Lyft to operate in the city. While the pilot project was meant to collect informatio­n and data so that it could eventually regulate TNCs, it’s devastated the traditiona­l taxi industry, according to taxi drivers.

As a result, the value of taxi licence plates has severely diminished, licence owners complain. “The loss is real, and it’s considerab­le,” taxi licence plate owner Peter Pellier said. “They used to be worth around $200,000, and now they sell for $10,000.”

As part of the city’s regulation on the taxi industry, a limited number of licence plates were owned by longtime taxi drivers and businesses. The limited number gave those plates a considerab­ly high monetary value. Plate owners considered the plates a source of pension and retirement security as they were transferab­le — either back to the city or another owner — for significan­t compensati­on.

Pellier, who has owned a Mississaug­a taxi licence for the past 40 years, says the regulatory model of licensing taxi drivers had two aims: to ensure consumer safety and protection and to ensure the operators would have the opportunit­y to earn a reasonable living.

He adds that while Uber and Lyft completely bypassed those regulation­s, taxi licence owners are now suffering.

The TNC pilot project was extended on Jan. 1, 2019, to an interim period not exceeding 12 months. Councillor Ron Starr, who sits on the committee, said the extension was granted because city staff discovered that ride-sharing services like Uber and Lyft are being used by many more people than was previously expected.

“The argument as I see it from them is that the municipali­ties put them into that situation, it was the municipali­ties that wanted a better industry, to control the type of vehicles, the safety aspect, inspection­s, fees, and didn’t do any of that for TNCs,” Starr said.

“We’re obligated to take a look at what the other situations are in other parts of North America, to find a reasonable solution,” he added.

The province of Quebec announced last year that it would give out compensati­on cheques ranging from $1,000 to $46,700 per permit to taxi drivers after it faced a similar situation.

In Toronto, taxi owners and operators launched a $1.7-billion class-action lawsuit last summer alleging the city has failed to properly regulate the private transporta­tion industry and caused the value of taxi plates to plummet.

 ?? BRYON JOHNSON METROLAND ?? Taxi drivers are asking the City of Mississaug­a for compensati­on for income losses they say are due to ride-sharing companies.
BRYON JOHNSON METROLAND Taxi drivers are asking the City of Mississaug­a for compensati­on for income losses they say are due to ride-sharing companies.

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