City Council Approves Taxi Rate Increase

At the request of the local taxi industry, City Council voted in favour of a 23% increase in taxi fares, during a City Council meeting. The recommendation for an increase was presented to Committee of the Whole on November 3, following consultation with ownership of Bugden's Taxi, City Wide/Newfound Cabs, Independent Taxi NL and Jiffy Cabs, representing approximately 95% of all taxi license holders in St. John’s.

“There are multiple increasing costs that are making it difficult for taxi drivers and companies to sustain a viable business in our province,” says Councillor Maggie Burton, lead for Transportation and Regulatory Services. “Since the last rate increase in 2011, there has been a two hundred percent increase in the cost of insurance for taxis, coupled with an increase in gas, minimum wage, and the basic cost of living. If we want to continue to see this service on the road, we need to support the request for a fare increase. This will help make the taxi business sustainable and allow drivers to earn a fair living.”

The implementation date for the increase is set for Monday, January 3, and requires a public notice, and an amendment to the Taxi by-law prior to implementation.

“We recognize the impact that a taxi fare increase will have, especially on people who rely on this service for transportation. This and other factors have been a part of Council and staff discussions,” says Councillor Maggie Burton.

“The solution for enhancing opportunities for affordable transportation in the city and region requires cooperation and support from all three levels of government. Enhancements to our public transit system and active mobility infrastructure are also a big part of that conversation and will be discussed and debated during the City’s budget 2022 discussions. Council continues to focus on ensuring residents of St. John’s can get around the city efficiently and affordably,” says Councillor Burton.

It is important to recognize that the City’s role in relation to the Taxi industry is to set the maximum taxi fares, and to ensure that:

• vehicles are licensed by the provincial government
• vehicles have a valid inspection certificate from a licensed garage
• vehicles have appropriate insurance coverage
• taxi license decals are properly affixed, and
• taxi metres are properly calibrated.