Toronto Taxi “Drop Fee” or Starting “Base Fare” is now $3.25

Update: see previous post – October 1, 2015 Toronto: Mayor Frustrated with UberX’s Flippant Behaviour

The taxi industry says the UberX service, which allows passengers to hire regular drivers using a smartphone app — usually at prices cheaper than a taxi — has caused a dramatic drop in fare revenue. In order to allow taxi's to remain competitive, on September 30/15 City Council voted to reduce a taxi's "drop fee" or starting fare, from $4.25 to $3.25 beginning on Nov.1/15.
The taxi industry says the UberX service, which allows passengers to hire regular drivers using a smartphone app — usually at prices cheaper than a taxi — has caused a dramatic drop in fare revenue. In order to allow taxi’s to remain competitive, on September 30/15 City Council voted to reduce a taxi’s “drop fee” or starting fare, from $4.25 to $3.25 beginning on Nov.1/15.

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Drivers are required to charge less, even if meter hasn’t been changed to reflect the new “drop fee’ or “base fare” of $3.25.

A taxi ride in Toronto will be $1 cheaper starting Sunday, when a move meant to keep cabs competitive with Uber takes effect.

Taxi meters will start at $3.25 as of Nov. 1. Toronto city council approved the lower fare, or “drop fee,” in September amid complaints from local cab companies they are being edged out by unregulated ride-hailing services like Uber and UberX.

UberX rates start at $2.50.

“This will make moving around the city more affordable for the public, and it will help the traditional taxicab industry compete,” Mayor John Tory said in a statement.

Beck Taxi and Co-op Cabs were among the companies calling for a cheaper fee.

Toronto Taxi Meter with a base fare or drop fee of $3.25 beginning Nov.1/15. It was $4.25 and is now a dollar less. Drivers are required to charge less, even if meter hasn't been changed tp the new base fare of $3.25.
Toronto Taxi Meter with a base fare or drop fee of $3.25 beginning Nov.1/15. It was $4.25 and is now a dollar less. Drivers are required to charge less, even if meter hasn’t been changed tp the new base fare of $3.25.

Beck cheered the move but continued to criticize “black market operators” who operate outside the city’s bylaws.

“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,” said Beck operations manager Kristine Hubbard in a statement.

It will take time before all the taxi meters are changed, but city officials say all cabs must charge the reduced rate.

If the meter has not been changed the driver is required to take $1 off the final fee, Beck said.

A recent report by city staff, which also recommended a reduced drop fee, said Uber and similar services should be brought under the same regulations that govern traditional cabs.

The other meter rates on Toronto cabs — 25 cents for every 0.143 kilometres travelled or 29 seconds spent waiting — have not changed.

Toronto Taxi's lined up at hotel taxi stand. Toronto politicians and taxi industry spokespeople hope that a reduced fare will make hiring a taxi an easier option for passengers.
Toronto Taxi’s lined up at hotel taxi stand. Toronto politicians and taxi industry spokespeople hope that a reduced fare will make hiring a taxi an easier option for potential passengers.
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