Taxi rates in the city could be set to rise after local taxi companies petitioned city hall to raise a regulated rates due to the steep increase in fuel costs since the rates were last revisited five years ago. - News photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
Cab fare will be going up in Medicine Hat for the first time in five years to address higher operating costs, city council approved on Monday.
Taxi rates, which are regulated in the city’s “vehicles for hire” bylaw, were last examined and changed in 2017, when the price of gas averaged just under $1 per litre.
After a new request for rate review by cab companies last spring, council was presented with a new schedule at Monday’s meeting from the city’s administrative committee.
“As many of us have seen costs rising so too do (taxi drivers),” said Rochelle Pancoast, the managing director of the city’s strategic analysis office.
“They are facing costs that make it difficult to provide the services as they do today.”
After limited discussion, the bylaw passed all three readings later in the evening by an 8-0 count, with councillor Alison Van Dyke absent.
The recommendation to boost local rate cap by between 5 to 10 per cent arrived from the administrative committee.
Cabbies told the News earlier in the day they are facing much higher costs and need to recover that from customers to remain viable.
“It’s predominantly due to the price of gas, but there are other costs,” said Paul Tunbridge, the manager of Care Cabs, who also cited insurance, the price of vehicles and maintenance.
“(Our costs) fluctuate, but the rate stays the same. It goes on like that until it gets to a point were we really have to adjust them.
“We’ve really been conscious of our customers, and we’ve tried to hold off as long and we can.”
Gasoline approached $2 at some local stations in the summer, before failing back, but still sits 40 per cent higher than five years ago.
Tunbridge said there have only been six adjustments in the 38 years that he’s driven cab in the city.
In 2017, the changes also loosened rules for operating ride-share companies and greater competition in city transportation policy, which states that having an adequate number of taxis available is important from a public transportation standpoint.
“It’s a balancing act, and we’re trying to do our level best,” said Coun. Darren Hirsch, adding that he hoped healthy competition would lead to healthy prices.
Care Cabs, along with the other major taxi company in the Hat, Deluxe Central Taxi, petitioned the city solicitor in May to adjust the fees. They are also suggesting moving to digital systems to tabulate fares from hardwired systems in cars that must be physically recertified by city inspectors each year.
Rates would move from the starting base rate of $3.50 currently to $4, or from $7 to $8 for trips with more than 4 passengers. Similarly the rate per kilometre travelled would rise from $1.70 to $2, about five per cent higher than the average of other cities.
Some rate changes would put Medicine Hat slightly above the province averages, but other cities are evaluating updates as well.
Earlier this month, five cab companies in Lethbridge petitioned that city’s council to raise rates by between 18 and 30 per cent for things like per-kilometre rate, wait times and cancellation fees. A decision from that council is due in February.
