Taxi fares in Ottawa could jump 10% next month due to operators’ rising costs – and insurance was identified as one of the major drivers of the cost surge.
Taxi service company Coventry Connection and cab driver union Unifor Local 1688 had sent a letter to Roger Chapman, the director of bylaw and regulatory services in Ottawa, asking for a 10% increase in taxi fares – the industry’s first increase in 12 years.
"Unfortunately, we are no longer able to continue to operate without an increase in revenues, which means a meter increase," the joint letter said.
CTV News reported that if the increase was approved, the drop rate will rise from $0.35 to $3.80, while the cost per kilometer will increase two cents.
The letter also noted that insurance rates for taxi companies have become more expensive, among other operating costs. Since 2012, taxi insurance rates have jumped to 35%, the operators said. The rising cost of fuel was also cited as another major factor in the decision to raise fares.
“As a result of these and other unavoidable cost increases, the Taxi industry is requesting a meter increase that would reflect an overall increase of 10% (combination of increased drop rate and per km rate)”" the letter stated.
Ottawa’s community and protective services committee will debate over the rate increase proposal at its next meeting on May 19. As reported by CTV News, the fare hike would take effect starting June 11 once it is approved.
