Uber warns of higher prices and longer wait times following Toronto’s decision to freeze new licences
Toronto will also be issuing its first-ever new taxi licences in Toronto from May 1, 2018.
Toronto residents may be paying slightly more, but they get more choice
Earlier this week, the City of Toronto approved new taxi licences, with an increase in fares, a delay in issuing the new licences, and a reduction in the number of new taxi licences available. A total of 10 new taxi licences were approved, with 25 per cent of new licences to be issued in the coming weeks.
As a result, the cost of the cheapest and most affordable rides will increase by about four bucks a ride, up from $1.20 to $1.30.
“The City should have increased the subsidy payments for the cheapest rides but didn’t. The City didn’t need to do this other than to give its riders an alternative,” a spokesperson for Uber told the Star.
The company says the average price for a ride will drop from $1.10 to $1.08, which, they say, is a substantial drop in costs. Uber is offering a $1.08 one-way, 30-minute ride from Yonge Street and Bloor Street.
However, the spokesperson for Uber says the reduction in the number of new taxi licences in Toronto was dictated by “restrictive by-laws and community attitudes”.
The City of Toronto told the Star the by-laws and attitude were not at all responsible for the reduced number of new taxi licences in Toronto. In fact, the City told the Star that there are more taxis in the city than ever before.
Uber said the price increase of up to four bucks per ride does put people in debt for their taxis and their insurance, and that it needs time to work with the authorities to find a solution for people who do not want to use Uber and continue to need a taxi to get to and from work.
The spokesperson for Uber said the company is in serious discussions with the City about the issue and hopes to be able to make an announcement soon.
The move follows a similar move by Toronto to freeze the licences of two other companies – Uber Toronto and Uber Eats. The City’s decision had put the