In The Record newspaper on January 31, 2015. I quote "Right now a cabbie could sell his ownership license for about $300,000. They're valued because so few are available." Is not true. The real value is not license per se but the years that these companies are in business. Reputation of that company. Example: a mom and pop coffee shop vs. Tim Horton's which one would you buy. New Hamburg Taxi don't even come close to $300,000. Why? Simple, no real value in that company. No radio dispatch or regular hours and they are a regional taxi company. The cost of running a taxi company is huge. That's why the region choose the best taxi system. A brokerage in which every taxi owner is part owner of that brokerage. There is not just one person that owes the taxi company or brokerage. The companies or brokerage are not there to make a profit for shareholders like Uber. Every owner pays fees or rent to cover the costs of running the business. Like paying staff wages, property taxes, equipment and license fees of radio, cellular data and a lot more. Also they provide jobs and opportunities for people to make a living. And the taxi is the only way a taxi owner can make a income.
So, a new license is given to a company you think any person should have the right to come in to establish business without paying something or know the industry. I wish that was true. I would walk into a Tim Horton's and say I'm a part owner. Plus, we take great pride in choosing someone in becoming a owner in our company. Not someone off the street. Someone who hasn't put their time in a taxi. So, that they can become responsible owner. Where we can improve our service for the public.
Uber started in 2009. It has grown to become one of the largest transportation provider service companies in the world. But, how they did it has put the world on it's ear. Yes, they have a fancy app, and soon we'll have one also. It works great in a lot of under service areas. What they are is providing a taxi service without regulations or government oversight. Where taxis for decades have been regulated for fairness and safety. Uber moved into the Waterloo Region without any care of what effects it would do to the industry or their customers in Waterloo Region.
The taxi industry is still recovering from lost of customers do the region's decision on giving all universities students subsides bus passes (which were made mandatory by the universities). There was no discussion with the industry. To see if there was going to be any consequences to it, and there was.
I quote from the same article "Taking a taxi isn't cheap. The cost of five-kilometre cab ride here was fourth-highest out of 19 Ontario municipalities at $14.00, according to regional report in 2011." Too bad she couldn't do some real research on taxi industry in the province or even in the region. We would have been if the proposal went to the taxi association way. And if all other municipalities didn't get a increase also. But, the taxi association didn't get what they wanted. Oh, that would have been the first increase in 4 years and the HST start in July of 2010, which the 8 percent of the GST was absorbed by the industry in the region. There should have been increase in 2010 but the region decided that we would get a break from the Ontario government. RIGHT!
So the next time you really want to know how the taxi industry really works in the Region of Waterloo. Ask your taxi driver or a regional by-law officer.
This blog is response to miss information of the Taxi industry in the Region of Waterloo.
Thank you all for reading this blog.
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