Taxi base fares drop $1 in Toronto starting Nov. 1

TORONTO – In the face of increased competition from ride-sharing services such as Uber, taxi rides are about to get cheaper.

Starting Sunday, taxi base fares will drop from $4.25 to $3.25, after council voted in October to lower fares.

READ MORE: Tory wants Uber to operate in ‘good faith,’ provide upfront insurance policy

“We are pleased city councillors decided that Toronto’s taxi service will be able to offer our riders a reduced fare beginning Sunday,” Operations Manager at Beck Taxi Kristine Hubbard said in statement.

“While this is a good day for our valuable riders, Beck would be remiss not to highlight this fare break comes out of the pockets of Toronto’s hard working taxi drivers, who are still being forced to compete against black market providers who continue to ignore our city’s bylaws.

“Enforcement of all existing bylaws should happen now to support Toronto’s law-abiding workers and to ensure that riders are offered the new lower rate in safe and reliable taxis.”

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The city issued a statement Friday informing the public of the fare drop.

“Toronto should have a competitive taxicab industry that serves both the public and drivers well. That’s why I supported Council’s decision to reduce the minimum fare paid by the public by $1,” Mayor John Tory said in a statement.

“This will make moving around the city more affordable for the public, and it will help the traditional taxicab industry compete.”

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In addition to the fare decrease, the city announced they will be issuing 100 new Toronto Taxicab Licences to drivers on the waiting list.

The taxi industry has been a vocal opponent to companies like Uber, saying its operations in Toronto have had a negative impact on cab drivers.

The fare drop was adopted last month to help create an even playing field for taxi drivers.

“Beck supported the fare drop request and was pleased to see City Hall adopt it last month on behalf of taxi drivers,” Hubbard said.

“Now is the time for the city to examine licensing and renewal fees that drivers are still being forced to pay while black market taxis roam our streets.”

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Uber Canada spokeswoman Susie Heath said the base fare drop is a positive step for Toronto residents.

“Lower fares are good news for consumers – We believe that Torontonians deserve a safe, reliable and affordable ride in our city and that taxi and ridesharing can complement each other to better serve rider and driver needs in Toronto,” the statement said.

City council is set to meet next week and will receive an update on enforcement of Uber in Toronto, which is currently operating unregulated.

READ MORE: Council meets next week: Here’s what you need to know

Mayor John Tory has received pushback from the taxi industry in the past after saying Uber, and companies similar to the ridesharing app, are here to stay.

Tory spoke with media on Thursday and said he sympathized with members of the cab industry and is looking to find ways to reshape and regulate the ground transportation industry.

“Nothing we have ever said has contemplated life without taxis. There will be a taxi industry and there will be taxi drivers and they have to be able to make a living,” Tory said.

“What we are trying to do here is take account of reality and reshape an industry and regulate an industry in the context of the way the world is.”

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Beck also mentioned that resetting metres will take several days, but taxi drivers should honour the $1 fare drop starting Nov. 1.

“The City has instructed us to tell drivers that they must go in and get their metres adjusted, but in the meantime … the new rate must take effect,” Hubbard said.

Hubbard says they will be communicating with taxis over radios and car terminals to remind drivers of the fare decrease.

“Everybody should be informed. There are going to be situations … where both the driver and the customer doesn’t know that the driver is supposed to do it on their own,” she said.

“We hope that’s not going to happen and we are going to do our best to inform everyone.”