Q: How are taxis regulated in Calgary?

A: The City of Calgary bylaw 6M2007 sets out the rules, standards, fares, and licencing requirements.  This bylaw can be found on the City’s Livery Transport Services webpage here and can be downloaded. 

The Taxi Limousine Advisory Committee reports to City Council and provides advice on taxi policy.  It is comprised of 3 citizen representatives, a representative from each of the Calgary Airport Authority and Tourism Calgary, and 3 industry participants representing drivers, brokerages, and licence holders.  The terms of reference for TLAC can be found on the City of Calgary website here .

Q: How big is Calgary’s taxi industry?

A: Calgary has 1311 regular taxi licences (plates) and 100 wheel-chair accessible taxi licences.  The accessible taxi licences were issued in 2006 and were the first new licences issued since 1986 when the system was closed. 

There are 10 brokerages (dispatch companies that take calls for taxis) but only 4 of them have plates licences of their own.  All taxis (except the 2 independent orange taxis) must be affiliated with a brokerage.

Q: Do taxi licences have any value in Calgary?

A: Taxi Plate Licences (TPL’s) have value in two ways – the lease rate (above) that can be charged to use it on a vehicle, and the “purchase price” or transfer price.  When the system was closed in 1986, the value was $0.  When transferability of TPL’s was introduced in 1993, the going rate was $2,000.  When 40 Co-Op licences became available in 2004 they went for $50,000 each.  Since the new bylaw was passed in 2007 Calgary’s taxi licences are transferring for a reported $100,000 or more.

Q: Is allowing taxi licences to have a value a good or a bad thing?

A: There is growing concern that plates having any value distorts public policy discussions, and creates a vested interest (the existence of licence holders) that works against the public interest.

When licences have value, then the taxi licencing system becomes about licence value and not about providing good taxi service.  Some regulators believe that allowing licences to have value is like creating a pension for drivers and that it will enfranchise a disadvantaged class and create pride of ownership.  But over time, regulators are unable to ensure that licences stay in the hand of drivers, so the pension concept is lost.

Q: What did the 2007 bylaw do about subleasing?

A: It was not the intention to legalize subleasing, but that has been the outcome.  Since the bylaw was passed, TPL transfer prices have gone from an average of $60,000 in 2006 to reportedly over $100,000 by 2008.  Stand rents paid by drivers have also gone up. 

Q: If TPL’s are supposed to be the pension for drivers, then why do brokerages have so many of them?

A: In 1986, when the system was closed, most of the licences were in the name of the cab companies (brokerages).  It has remained this way ever since.

Q: Doesn’t Calgary have to limit the number of taxis because of the Supreme Court of Canada decision in 2003?

A: No the Supreme Court of Canada confirmed that cities have the authority to regulate taxis – including limiting the supply, based on the wording in the Alberta Municipal Government Act.  But cities do not have to limit the number.

Q: What about accessible taxis?

A: Accessible taxi licences were issued by lottery to individual taxi drivers in 2006.  This was done because of the historical imbalance in Calgary between licences held by brokerages and licences held by drivers.  Most other cities issue accessible licences to brokerages who would then be required to ensure service availability for people with disabilities 24-hours a day, 7 days a week.

When the 100 licences were issued, it was not known whether that was enough accessible vehicles to meet the demands of the disabled community.  It may be time to do a survey of customers with disabilities and ask whether they have been able to get an accessible taxi at various times of the day, in all parts of the city.

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