By Trevor Wilhelm
A union representing Blue Line taxi drivers has called for an increase in the price of cab fares.
Earlier this year, Retail Wholesale Canada asked the city, which determines cab fare rates, for a six-per-cent increase.
This would mean, for example, a 45- cent increase on a five kilometre ride, taking the current cost of $7.80 to $8.25.
Martha Boyle, Manager of Licensing and Animal Control for Ottawa, says the request will go before city council at the beginning of April.
If approved, the increase will be implemented in May. If such a decision is made, Boyle expects the other area municipalities would follow suit.
Representatives of Blue Line and Retail Wholesale Canada could not be reached for comment. But Boyle says the request was born out of a number of factors.
“Certainly gas prices are one of their concerns,” says Boyle. “Also, they haven’t had an increase in eight years. But they have had a number of increases in other operating costs,” (including insurance and repair fees.)
Boyle says according to the taxi cost index, the industry is actually entitled to a 16-per-cent increase.
The cost index, a system which measures “changes in costs specific to taxis,” like fuel, insurance and repairs, is used to determine what kind of fare increases the taxi industry is entitled to.
Right now the price of gas is a big factor, and the biggest concern for many taxi drivers, like Mohamed Ghanem.
Ghanem, a 10-year taxi veteran, says inflating gas prices are causing him to consider giving up driving.
“I can’t afford to keep doing this,” he says through the window of his taxi cab.
Ghanem says with the increase in gas prices, which have reached 80 cents per litre in some areas, he is paying more than $300 a month on gas.
He says this could reduce his yearly income to around $11,000. “It’s not even an income anymore,” he says.
To make up for the shortfall, Ghanem sometimes works up to 89 hours a week.
Even then he says it’s not worth the trouble.
“You go home exhausted after 11 hours in one day with $30 in your pocket. That’s not enough,” says Ghanem.
He says the situation is even more frightening because of the approaching summer season. Ghanem says his business drops by half over the summer.
Sean McLean, owner of Valley Taxi, says he’s worried about this as well.
“This is a bad time to be doing this to cab drivers,” he says.
McLean says many people walk or ride their bicycles in the warmer temperatures, and this has a huge impact on his business. He’s fed up with the price of gas too.
“It’s ridiculous. There’s no other word for it,” he says.
McLean’s operation is in Carleton Place, so he’s not bound by city regulations. He has already raised his flat rate price of $3.75 per ride to $4.50, with many customer complaints.
He used to run five cars steady, but has had to take two off the road to cut costs. But McLean says even that may not be enough to save him.
If gas prices get any higher, he says he’ll be forced out of business. “It’s hitting cab owners hard,” he says. “We’re caught behind the eight ball.”
Ghanem would like to see prices raised in Ottawa too, but says he isn’t sure it will solve his problems.
He says raising fares are a blessing and a curse.
“It’s scary,” he says. “We’d love to raise fare prices, but we’re scared to lose customers as a result. We’re screwed either way.”