Paper outlines three options to help the taxi industry

A policy paper produced as part of Ottawa’s taxi industry review has laid out three possible strategies to navigate a complicated and quickly-shifting taxi landscape.

Commissioned by the city from KPMG, the policy paper sums up three options as the industry struggles to cope with new hailing technologies such as Uber that are making getting a ride cheaper for customers but more difficult for taxi drivers to compete. The three strategies are “not mutually exclusive,” and the city could choose to adopt more than one, said KPMG.

■ Option 1: Reform the existing industry by introducing the features of an app-based service like Uber.

PRO: Taxi apps would be expanded to allow for the driver ratings and credit card payment. That could also reduce fares through increased competition among taxi companies.

CON: This option might improve customer service, but it might be difficult to achieve significant change because the taxi union’s collective agreement limits innovation to improve customer service, noted KPMG. Meanwhile, there are a small number of interrelated brokerages, which limits competition.

■ Option 2: Introduce a new licensing category for “Transportation Network Companies” like Uber. Drivers who acquire this licence would not be able to use taxi stands or be hailed form the street, but they would be required to meet screening requirements like police checks and insurance.

PRO: That would level the playing field for taxi drivers while increasing safety for customers.

CON: More money would have to be spent on enforcement. Some drivers would still operate without a license.

■ Option 3: Expand the entire taxi industry by eliminating the limit on taxi plates.

PRO: Anyone who meets the qualifications can acquire a taxi plate, allowing more competition and reducing costs. Potential drivers wouldn’t have to borrow money to buy or lease a plate.

CON: Too many drivers might enter the industry. In some markets where taxis were deregulated in the 1970s, driver incomes fell and their was less investment in cars and services.