Associated Cab logo (rdnewsNOW/ Josh Hall)

By Alessia Proietti

Fall 2023

Red Deer proposes updates to Vehicle for Hire bylaw

Apr 18, 2023 | 1:26 PM

The City of Red Deer is considering updating their Vehicle for Hire bylaw later this year.

At their meeting on Monday, city council discussed the bylaw following feedback from industry partners like drivers, taxi brokerages and Transportation Network Companies (TNC).

During targeted communication, the City says they received 93 survey responses and spoke with roughly 50 individuals who attended an open house on the subject in March 2023.

Council approved the following recommendations:

1. Replace the age-based restrictions with a vehicle mileage restriction of 350,000 kilometers (km)
2. Explore additional options related to plate limits
3. Remove drop rates for taxis
4. No change to current drop rates for Transportation Network Companies (rideshare)
5. Explore additional options for regulations for Transportation Network Companies
6. Simplification of the licensing process

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MODEL AGE

Under the current bylaw, the model age for Taxis, Accessible Taxis, TNC’s, is not more than 10 model years old and for Limousines and Shuttles, not more than 15 model years old, unless approved by the City Manager. The City says exceptions are frequently happening due to the lack of supply and affordability of vehicles. Calgary is the only other major city in Alberta to have a model age restriction.

Officials say 350,000 kms was chosen as a potential restriction instead of age based on the typical usage of a Vehicle for Hire, the standards of when vehicles start to show significant mechanical issues, and while considering the regular and mandated maintenance and inspections the Vehicle for Hire industry must follow.

TAXI PLATES

The current limit on plates is one Taxi plate per every 750 people and one per every 15,000 for Accessible Taxi plates.

City officials say the challenge, as a municipality, is determining the right number of Taxi plates to meet the needs of the public but not saturate the market with too many vehicles which can make it difficult for drivers to earn a living wage. Grande Prairie and Lethbridge have no Taxi plate caps, with the latter stating positive results.

The City says the pandemic caused a decline in the number of Ubers available as they can choose their operational hours in comparison to the taxi industry that is required to work 24 hours a day all year. As a result, they say complaints are being received about long wait times or no answers when calling for a Taxi during peak times and events.

They state industry personnel provided feedback that with the impact of the night clubs closing in Red Deer and during regular operations, there are minimal opportunities to earn a living wage and there is a labour challenge finding drivers to hire.

DROP RATES

A drop rates is a flat rate minimum charge for using a Taxi or Accessible Taxi service, currently at $3.20 per 92 metres. TNCs do not have regulated drop rates.

The City says they were initially implemented for taxis to maintain a base line charge and prevent undercutting where a living wage could not be earned.

If drop rates were to be removed, businesses would have the flexibility to make their own decisions, as long as the customer knows in advance what they are being charged.

TNCs

Uber, a prominent TNC, expressed frustrations with certain regulations such as the Driver for Hire Licence and TNC Authorization for the license, however, the City says these processes ensure security in background checks of drivers. The City adds the $100 annual licensing fee is currently subsidized at 63 per cent of the total cost and annual licensing renewals are sent out to drivers roughly three months before expiration.

Administration says they will come back for first reading of the bylaw amendments in Fall 2023.

READ: Red Deer to review Vehicle for Hire bylaw in April 2023