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City looks to hike taxi rates by 5%

Sudbury taxi rates are currently higher than the Northern Ontario average
taxi
(Supplied)

City staff are recommending a five-per-cent hike to taxi rates as early as Nov. 24.

A report headed to city council on Nov. 10 outlines a staff recommendation to increase the drop rate and rolling rate by five per cent, while preparing a bylaw amendment that would allow taxi owners to create and file their tariff rates with the city.

Greater Sudbury ranks among the most expensive cities in Northern Ontario when it comes to its taxi fares. 

Currently, it costs passengers $4 as soon as they get in a cab in Sudbury – a fee called the “drop rate.” Greater Sudbury has one of the lowest drop rates in the North, but the city’s fee per distance (the “rolling rate”) is higher than cities such as North Bay, Timmins, Sault Ste. Marie and Thunder Bay.

At $0.25 per 95 metres and a $4 drop rate, a 10-kilometre trip in a taxi in Sudbury will cost $30.31, while the next highest cost for the same trip is Sault Ste. Marie at $28.90. Thunder Bay has one of the highest drop rates in the north at $4.78, but its low fees per distance means a 10-km trip will cost $23.98, $6.33 cheaper than in Sudbury.

The taxi rates in Greater Sudbury have steadily climbed over the past two decades, and back in 2003 with a drop rate of $3 and a fee per distance of $0.25, a 10-km trip would have cost less than $20, at $19.60.

On March 20, 2018, city council agreed to increase the drop rate and rolling rate by five per cent to respond to the provincial minimum wage increase, while also committing to review for subsequent wage increases that ultimately did not occur.

On average, taxi rates among the Northern Ontario cities mentioned above average out to $26.99 for a 10 km trip, meaning Sudbury is nearly $5 more expensive than the average.

"A review of taxi rates in Northern Ontario concludes that the drop rate for the City of Greater Sudbury is one of the lowest. Alternatively, with an ability to charge $0.25 for every 95m traveled, this translates to residents of the City of Greater Sudbury paying the highest per kilometer of travel, at $2.63," said the report headed to council on Tuesday. "Averaging the drop rate and the fee per distance for a 10-kilometre trip, City of Greater Sudbury residents currently pay more for the same trip if taken in Timmins, Thunder Bay, Sault Ste. Marie or North Bay."

The city held stakeholder meetings with taxi owners in order to obtain feedback to direct taxi fares in the city. When meeting with taxi owners back in March, a number of owners pointed to increasing insurance rates as a concern, stating that there are very few options to get better rates as only three insurance companies offer coverage to taxi owners.

Lockerby Taxi reported a 26-per-cent year-over-year increase on their premium, while Aaron Taxi reported a 10-per-cent increase.

City staff's proposal for the new fees that could be implemented as early as Nov. 24 include bumping the drop rate from $4.00 to $4.20 and increasing the travel per kilometer rate from $2.63 to $2.76 - meaning that if passed, a 10-km trip in a taxi on Nov. 24 will cost $31.80, roughly $1.50 more than if you took the same trip on Nov. 23.

In response to the taxi industry asking for quicker amendments to the meter rates and the ability for council to review these rates, staff are also recommending amendments to taxi bylaw in the first quarter of 2021 in order to permit meter rates to be set by taxi owners and filed with the municipality. 

"It is recommended that rates can only be amended annually by an owner (no more than once in a 12 month period) unless otherwise deemed to be in the best interest of all City of Greater Sudbury taxi companies," said the report. 

"Further, owners will only be permitted to set rates that are currently regulated in Schedule A, Section 16 of Bylaw 2016-145; specifically being rates for the first 100 metres (drop rate), fee for each incremental distance traveled, wait fee and clean up fee."


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