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An Examination of the Taxi Supply
in the Lower Mainland
prepared for
The Motor Carrier Commission
of
British Columbia
Bonnie Evans
John Webb
October 2001

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Table of Contents
Table of Contents ....................................................................................................ii
Acknowledgements ................................................................................................. iv
Methodology............................................................................................................v
Executive Summary..................................................................................................1
Background .........................................................................................................1
Stakeholder Observations......................................................................................3
Other Jurisdictions................................................................................................5
Factors Affecting Taxi Supply and Availability..........................................................6
Summary of Options.............................................................................................8
Introduction ............................................................................................................9
Background...........................................................................................................11
Current State of the Industry...............................................................................11
Regulation .........................................................................................................15
Stakeholder Observations .......................................................................................18
Industry ............................................................................................................18
Vancouver International Airport Authority.............................................................23
Vancouver Port Authority ....................................................................................24
Public Transit.....................................................................................................25
Hotel and Doorman’s Associations........................................................................26
Municipalities .....................................................................................................26
City of Vancouver......................................................................................................... 27
City of Burnaby ............................................................................................................ 28
Cities of Surrey and New Westminster ........................................................................... 28
Cities of Richmond, North and West Vancouver.............................................................. 29
Consumer Groups...............................................................................................31
People with Disabilities ................................................................................................. 31
Seniors ........................................................................................................................ 32
Regulating Taxicab Supply: Other Jurisdictions.........................................................34
The Ontario Experience: Changing regulations in Toronto and Ottawa ....................38
Ambassador Taxis in Toronto........................................................................................ 39
Ottawa’s Taxi Review ................................................................................................... 40
Criteria determining supply in Toronto and Ottawa......................................................... 41
Factors Affecting Taxi Supply and Availability ...........................................................43
Supply...............................................................................................................43
Availability .........................................................................................................44
Formulae and Ratios...........................................................................................45
Share/Plate Values .............................................................................................46
Other Issues..........................................................................................................49
Enforcement and Regulatory Process ...................................................................49
Options.................................................................................................................50
Supply...............................................................................................................52
Criteria ..............................................................................................................55
Boundaries ........................................................................................................57
Choosing Among the Options ..............................................................................59
Appendix A: Notice to Industry................................................................................62
Appendix B: Terms of Reference .............................................................................63
Appendix C: Questionnaires ....................................................................................66

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Appendix D: List of Respondents.............................................................................69
Industry ............................................................................................................69
Municipalities and Districts ..................................................................................69
Other Stakeholders
...............................................................................................70
Bibliography ..........................................................................................................71
Articles, studies, reviews and submissions ............................................................71
Statutes, Bylaws.................................................................................................74
Online Sources...................................................................................................76
Newspaper articles, press releases.......................................................................77
Index of Tables
Table 1: Licensed Taxi Companies Operating in the Lower Mainland................ 12
Table 2: Ratio of Taxis to Population: Lower Mainland.................................... 13
Table 3: Estimated Price for One Share in the Greater Vancouver Area*.......... 14
Table 4: One Taxi Company’s Annual Statistics: Year 2000 ............................. 19
Table 5: Consumer Demand by Type and Time of Day ................................... 20
Table 6: Municipal Responses to questions of supply...................................... 30
Table 7: Proportion of Wheelchair Vans in the Lower Mainland........................ 31
Table 8: Municipal Licence Fees in the Lower Mainland................................... 44
Table 9: Taxi-Population Ratios in Major Metropolitan Areas ........................... 45
Table 10: Summary of Options...................................................................... 51

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Acknowledgements
We would first like to thank the Motor Carrier Commission of British Columbia and its
Chair, Claude Heywood, for the opportunity of preparing this report for the Commission.
We would also like to acknowledge the cooperation of the many organizations and
individuals who participated in this consultation process. In particular we would like to
thank the BC Taxi Association and the Vancouver Taxi Association as well as those
companies and individuals within the taxi industry who took the time to answer our
questions and provide us with information and statistics.
We are also grateful for the cooperation of the various municipalities, especially the City
of Vancouver, as well as TransLink, the Port of Vancouver, the Vancouver International
Airport Authority, the British Columbia Chamber of Commerce, the North Shore Disability
Resource Centre, the B.C. Coalition of People with Disabilities, the Seniors’ Advisory
Council, and the Vancouver Hotel and Doorman’s Associations.
The staff of the Motor Carrier Department, in particular Doris Sundquist, were always
ready to answer questions and supply information.
The Taxi Advisory Committee of the Motor Carrier Commission not only supplied us with
contacts and information, but also met with us to review draft sections of the report.
This report would not have been possible without the assistance and support of the staff
of the Motor Carrier Commission. In particular we would like to thank Jan Broocke,
Director and Secretary to the Commission, whose help and advice was invaluable, along
with staffers Lisa James, Sharlene Ferguson and Michael McGee.
The individuals who gave so freely of their time and expertise in this process are listed in
Appendix D.

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Methodology
This consultation process was commissioned by the Motor Carrier Commission in May of
2001.
We were asked to address the issue of taxi supply in the Lower Mainland, an area that
includes the Fraser Valley extending east as far as Harrison Hot Springs, and to attempt
to find answers to a number of questions including:
Is the current supply of taxis adequate?
What criteria should the Motor Carrier Commission use to determine supply?
What would be the impact of increasing supply?
Are there objective factors or indices that can be used to assess the supply?
Under our terms of reference we were asked to consult with industry, municipalities,
relevant government ministries or agencies, as well as other stakeholders such as the
Vancouver Airport Authority, the Port of Vancouver, the Tourism Bureau, and advocacy
organizations for people with disabilities and seniors. Along with those consultations, we
undertook an extensive literature review, and telephone and email correspondence with
other jurisdictions that have been grappling with the issue of supply in order that we
might assess their methods and outcomes. In particular we looked at the process and
outcomes of extensive review and reform in both Ottawa and Toronto. In addition we
drew on data acquired during the taxi study of 1999 that resulted in
A Study of the Taxi
Industry in British Columbia
, (the Lanyon Report) and from the submissions made in a
public hearing on the issue of supply of taxis in the Lower Mainland held by the Motor
Carrier Commission in September of 1999 (after the release of the Lanyon report).
It is important to note that our Terms of Reference do not ask for recommendations, but
rather for a series of options along with an analysis of their relative strengths and
weaknesses. We will attempt to lay out those options, drawing on both our exchanges
with representatives of the various stakeholders and our extensive research into the
repercussions of change in other jurisdictions.

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Questionnaires were distributed to municipalities and other stakeholders and interviews
were conducted either in person, by telephone or via mail/email.
Our research materials are listed in the Bibliography. Our terms of reference are
contained in Appendix B. A complete list of individuals and agencies who participated in
this review is listed in Appendix D and the questionnaires we distributed are reproduced
in Appendix C.

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Executive Summary
The taxi industry in North America and Europe has been subject to various regimes of
regulation for the past 366 years. In Canada regulation of supply was imposed in most
cities during the thirties and forties. An exception to this was Montreal, where the supply
of taxis was actually deregulated following WWII.
During the latter decades of the twentieth century, major cities in most western and
some eastern countries experimented with various forms of deregulation and selective
regulation. Such changes were usually accompanied by studies, analyses, public
hearings and reviews. British Columbia was no exception. A series of studies of the
industry have been undertaken in this province, most recently
A Study of the Taxi
Industry in British Columbia
(the Lanyon Report)
.
While the Lanyon Report commented
on all aspects of the industry, it specifically refrained from making recommendations on
either taxi supply or territorial boundaries.
Background
There are 35 companies licensed to operated taxis in the Lower Mainland. These
companies hold a total of 1,233 certificates (plates) including approximately 85 for
wheelchair accessible vehicles. The largest companies are in Vancouver, Burnaby and
Surrey, with an average fleet size of 112. By comparison, in municipalities with a
population under 100,000, company size ranges from two or three cars to a high of ten.
Industry sources report that approximately 80 – 85% of owners drive their cars for at
least one shift. Other drivers are either casual hires or, more likely, have a lease
agreement with the owner. Lease rates, according to industry sources range from
$1,500 to $2,000 per month. That rate does not include fuel, insurance, maintenance or
dispatch fees. Dispatch fees average approximately $850 per month.
The average ratio of taxis to population in the Lower Mainland is 1:1381, considerably
below that of most other major Canadian metropolitan areas where the average ratio is
1:714.

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The supply of taxis is limited through regulation. The Motor Carrier Commission (MCC)
licences a fleet and stipulates the number of vehicles that a licensee may operate. Each
vehicle must have a motor carrier certificate and plate. A licensee may apply, through
the regulatory process to increase the number of certificates/plates held under the
licence. Within this regulatory structure, the taxi industry has, through the creation of
corporate structures, made it possible for individual shareholders to transfer (i.e. sell)
individual shares in the company that represent all or part of a certificate/plate. The
usual practice in Vancouver is for one share to represent the equivalent of one-half a
certificate/plate – each plate being worth two shares. Because the value of certificates is
very high, most sales are of one share, rather than of the whole certificate.
While Vancouver has one of the lowest ratios of taxis to population, it has one of the
highest share values in North America. Purchase of a share essentially gives the owner
the right to one-half of a certificate – in other words, the right to drive a taxi 12 hours
per day. Share values are difficult to ascertain, and vary according to location and other
factors, but industry sources tell us that the price of a single share ranges from a low of
$75,000 to a high of $210,000.
Regulation
Taxi supply is controlled through both the issuing of licences and certificates by the
Motor Carrier Commission of British Columbia and the issuance of municipal licences.
The MCC also controls, through the conditions of licence, the territory in which the
licensee may operate. Holders of MCC plates are also required to hold municipal
business licences in the territories where they operate. Most municipalities also have
bylaws which regulate some aspects of the taxi service in their municipalities. The most
stringent standards are imposed by the City of Vancouver. In a few cases, municipalities
have withheld approval of municipal licences to owners of MCC issued plates.

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In 1998 the MCC imposed a moratorium on licensing for all forms of passenger services
that would have an impact on taxi services. In September of 1999, that moratorium was
lifted for other forms of passenger service, but continued for taxicabs.
Stakeholder Observations
Meetings with the two industry associations were dominated by discussions of boundary
issues, enforcement and the need for greater flexibility in operations. Neither association
was opposed to an increase in supply, although the Vancouver Taxi Association saw a
greater need for an increase. They felt that Vancouver could accommodate another 25-
30 taxis. Both associations were opposed to increasing supply through the issuance of
licences to new companies, preferring to increase supply through the granting of
additional plates to existing companies. Both also suggested that caution should be used
in adding new plates while the impact on existing plates holders was assessed.
There were some differences between the companies operating inside Vancouver and
those operating in other areas in assessing their peak busy times, but all agreed that a
wait time of up to 25 minutes during busy times was not unusual. Wait periods were
influenced by the time of day, weather, season and special events. Both associations
pointed out that wait times during rush hours would not be eliminated by an increase in
taxi supply as traffic congestion was the predominate factor at those times.
All companies are aware of an increased need and demand for wheelchair accessible
vehicles. The Vancouver Taxi Association felt that a change to their conditions of licence,
allowing them to use larger van-type vehicles would free up wheelchair accessible
vehicles to more exclusively serve people with disabilities. Currently wheelchair
accessible vehicles are in demand, because of their larger carrying capacity, for cruise
ship passengers and downtown shoppers with large parcels.
Companies feel the need for more flexibility in the terms of licensing. They would like to
be able to use a certain proportion of their plates on a part time basis in order to more
efficiently respond to the peaks and lulls in their businesses. Presumably this could come

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in the form of non-transferrable licences which, having no share value, would remain
profitable despite operating for fewer hours.
The Associations are divided on the issue of boundaries. Companies outside Vancouver
would like to see boundary restrictions removed or at least eased during peak times.
The Vancouver companies want boundaries to remain in place at all times and
enforcement of those boundaries to be stepped up.
Heavy users of taxi services, such as the Vancouver Airport, the Port of Vancouver and
the major downtown hotels, all reported delays during peak hours. The Port has
particular problems as it may need to transport as many as 6,000 to 9,000 passengers
within a two-hour time frame during the summer cruise ship season. It feels it could use
substantially more taxis than are now available, and would like to see boundaries
opened in order to use companies from outside the city.
Hotel and doorman’s associations pointed out that there is a high demand among their
customers for luxury vehicles, a niche market that neither limousine or taxi companies
have been able to fill. The MCC has recently issued 19 certificates to limousine
companies for such vehicles in order to supply that market, however City of Vancouver
bylaws will have to be amended in order for the City to grant municipal licences.
Municipalities, for the most part, feel that the supply of taxis, with the exception of
wheelchair accessible vans, is adequate. While Vancouver and Burnaby have guidelines
spelling out a certain ratio of taxis to population, neither are currently using those
guidelines. Only Surrey and Vancouver clearly stated that more taxis were needed. The
City of Vancouver has made representation to the MCC on the need for additional
services in the city. On non-supply issues, the City of Vancouver would like to see the
higher standards they impose on Vancouver taxis applied to companies in the rest of the
region, in particular the Taxi Host program for drivers. It also sees a need to improve
driver training for those drivers who operate wheelchair accessible vans and carry
people with disabilities. Several municipalities said they would like to see an easing of

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boundaries. Smaller municipalities prefer to leave the question of regulation to the
province, pointing out that their resources are already stretched to the limit.
All stakeholders recognize the need for an increase in wheelchair accessible vehicles.
Advocacy organizations representing people with disabilities had many complaints, not
only about supply but about service and fares as well. In addition, a representative from
the City of Vancouver reported that the City continues to receive complaints about this
aspect of taxi service.
Seniors didn’t perceive supply as inadequate, but also complained about service, driver
attitudes and vehicle cleanliness. They noted that Vancouver companies had a higher
standard of service than those of other parts of the region, and felt that was due to the
TaxiHost program. They would like to see TaxiHost made mandatory throughout the
region.
Other Jurisdictions
Regulators of the taxi industry are primarily concerned with providing a quality service to
the public. Among the objectives of regulation are public safety, consumer protection,
availability of service, quality of service, reasonable profitability of service and reduction
of traffic congestion and pollution. How to accomplish these objectives is the subject of
debate, much of it ideologically driven by those who support free market principles of
supply and demand, and those support government intervention and regulation.
Ideology aside, it would appear that deregulation of the industry usually results in
oversupply, increased fares and consumer complaints, increase in traffic congestion and
aggression, and the elimination of equity in shares/plates or licences. New Zealand
appears to be an exception to this rule. While the supply, at least in urban areas, has
increased dramatically, observers note lower fares, higher standards and a more diverse
range of services. However there are some reports out of New Zealand that indicate
drivers have had a substantial reduction in earnings despite driving longer hours.

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The government of Australia and most Australian states and territories have undertaken
various extensive reviews of the taxi industry. Both Western Australia and the Northern
Territories have deregulated supply in their regions. In both cases, compensation equal
to the full market value of existing licences was offered to owners at the time of
deregulation.
Both Greater Toronto and Ottawa, as a consequence of amalgamation, have undertaken
extensive reviews and regulatory changes to their taxi industry. Both municipalities
focussed on service quality, driver standards, share/plate value and boundaries. Toronto
introduced a new class of taxis, known as “Ambassador” taxis. With the exception of
wheelchair accessible vehicles, only Ambassador taxis are eligible for new licences in
Toronto. While holders of licences granted before this new regime was introduced
continue to be able to operate and to lease or sell their licences (now known as
“Standard” licences), Ambassador licences are non-transferrable and vehicles can only
be driven by the owner of the licence.
Ottawa, after commissioning two studies and reviewing the various options has adopted
Toronto’s Ambassador system, and is moving toward a gradual elimination of boundaries
within the new municipality.
Toronto, despite a review of criteria for determining taxi supply commissioned in 1997,
has not yet decided on criteria and is considering yet another study. Its current bylaw
stipulates that a maximum of 100 new Ambassador licences may be issued each year.
Ottawa has settled on a taxi/population ratio of 1:668.
Factors Affecting Taxi Supply and Availability
Supply can be regulated in two ways, either directly through restricting the number of
licences or plates issued, or indirectly through stringent vehicle and driver standards
combined with high licence fees. As already noted, the supply of taxis in British
Columbia is controlled through the issuing of licences and plates by the Motor Carrier
Commission at the provincial level and municipalities at the local level. Most companies

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must obtain municipal business licences and in a few instances, municipalities withhold
those licences or impose additional regulations on the licence holder. With the exception
of wheelchair accessible vehicles, no new permanent licences or plates have been issued
by the MCC since 1998.
Criteria for determining supply vary greatly. Some municipalities use a simple population
ratio, others rely on complaints from the public. Perceptions about the adequacy of
supply are heavily influenced by the availability of the existing supply. Availability
depends on a number of factors including time of day, day of the week, time year,
weather and traffic. Competition also plays a role in determining if more taxis are
needed. Communities well served by alternate means of transportation are less likely to
perceive the taxi supply as inadequate, even if population ratios would indicate
otherwise. Generally speaking, the ratio of taxis to population in the Vancouver area is
substantially below that of other cities.
Boundaries also play a role in the calculation of supply. Drivers who have to return to
their home territories with empty taxis waste hours and fuel and are unavailable to the
public during that time.
Neither the issue of supply nor that of boundaries can be discussed without
acknowledging the underlying issue of share/certificate value. Restricted supply has
resulted in a steady increase in the market price for shares, with prices in Vancouver
going as high as $210,000 for one share. Historically it has been difficult for jurisdictions
to strike a balance between the companies’ need for market stability and the public’s
need for increased and improved service, whether the issue has been undersupply or
oversupply.
In areas where supply has been too tightly controlled a whole new shadow industry of
unlicensed, unregulated cabs has evolved. In both New York and Los Angeles, these
unlicensed cabs out-number licensed taxis. Major centres in Canada are beginning to
experience similar problems. The Pearson Airport has a high number of unlicensed cars
soliciting passengers.

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Toronto and Ottawa have both attempted to balance the competing interests of the
companies and the public through the implementation of a new licensing classification
under which new licences can be neither transferred nor leased. Called “Ambassador
taxis”, these vehicles can only be driven by their owners and therefore can only operate
for a 12 hour shift. With the exception of wheelchair accessible vans, both cities have
stopped issuing transferable certificates (plates) although taxis licensed under previous
regulations can still be bought and sold.
Summary of Options
Supply
Maintain the moratorium on all vehicles
Maintain moratorium with the exception of wheelchair accessible
vehicles
Continue the moratorium on new licences but grant additional plates
to existing companies.
Lift the moratorium and resume the normal process for new plates
and licences.
Give primary responsibility for determining supply to municipalities,
the Greater Vancouver Regional District, or another regional
authority
Lift the moratorium but only issue a new class of non-transferable
licences with specific standards for driver training and experience
and vehicle age
Criteria
Issue plates based on a set ratio of population to taxis
Issue plates based on perceived need within communities as
expressed in the application process.
Issue plates based on a formula that considers population,
competition, number of visitors, availability of public transit and
other factors.
Boundaries
Retain existing boundaries
Retain existing boundaries, but allow wheelchair accessible vehicles
to pick up and deliver passengers in any region
Ease boundary restrictions at certain times of day and/or for certain
events.
Phase in boundary elimination over a period of several years
Eliminate all boundaries immediately

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Introduction
The current interest in the regulation of taxi supply is not new. In 1635, King Charles I
of England ordered the licensing of London hackneys so as “to restrain the multitude
and promiscuous use of coaches”.
1
And in the same century, a system of licensing
“sedan chairs” was introduced in Japan.
2
In the more than 300 years since those first
licences were issued, the business of transporting small numbers of passengers on short
trips has been subject to legislation, regulation and review.
Regulation in Canada began in earnest during the nineteen thirties and forties when first
unemployed workers and later soldiers returning at the end of WWII began to flood the
market with taxis. By the end of the 1940s most cities in Canada as well as the United
States had put in place regulations limiting the supply of taxis. An exception to this was
Montreal, where supply was actually deregulated following WWII. Since then,
particularly over the past twenty years, the taxi industry has been regulated, de-
regulated, and re-regulated – in North America and throughout the rest of the world.
Countries as diverse as the United States, Sweden, Australia, New Zealand, Korea,
Ireland and Japan have been reviewing and experimenting with various forms of
regulation.
3
In every case, changes to the regulations governing the supply of taxis have
been highly controversial and subject to the competing interests of existing licence
holders, regulatory bodies, municipalities, and the various stakeholder groups that
represent the general public.
On the positive side, there is a wealth of information available to anyone considering
changes to their own supply regulations. Nearly every possible combination of regulatory
regime has been tried somewhere in the world and the results documented. Most major
cities and/or provinces in Canada have, in recent years, undertaken at least one detailed
studies of their taxi system, and have, as a result, implemented changes.
In British Columbia there have been several such studies. Most recently, in 1999, the
Ministry of Transportation and Highways commissioned
A Study of the Taxi Industry in
British Columbia
, (the Lanyon Report) that looked at the state of the industry

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throughout the province and made a series of recommendations, some of which have
been adopted through legislation and/or regulation.
Although the Lanyon Report commented on the issue of regulation versus deregulation
of taxi supply, it did not make any recommendations on that subject or on the issue of
boundaries which affect availability. Specifically it said:
There are two issues of primary importance to the industry that we do not
directly address within the framework of this study – that of taxi supply and
territorial boundaries. . . .This issue [territorial boundaries] along with the issue
of supply, is of paramount concern to many in the industry. It is our view that
these issues ought to be included in the long-term public planning process
involving not only the MCC and industry, but the GVTA and the municipalities.
4
In this report, we will look at both of those issues. One cannot consider the
supply
of
taxis without also considering their
availability
. While supply is directly controlled
through licensing and regulation, availability is subject to many factors, including time of
day, weather, airport and/or port demands, traffic congestion, availability of alternate
means of transportation and, most significantly, geographical boundaries.

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Background
Current State of the Industry
Currently there are 35 companies licensed to operate taxis in Regions 14, 14A and 15.
These regions include all of the Lower Mainland and extend up the Fraser Valley as far
as Harrison Hot Springs (District of Kent). These 35 companies hold a total of 1,233
certificates (plates) including approximately 85 plates for wheelchair accessible vans.
5
Table 1 lists existing licence holders, their location and the number of plates allocated to
them by the Motor Carrier Commission (MCC).
6
The two largest companies in the region are located in Vancouver where Yellow Cab is
the largest single licence holder with 198 certificates. Black Top, also of Vancouver, is
second in size with 160 certificates, while Bonny’s Taxi of Burnaby is third with 98
certificates. The average number of certificates per company in the three largest
municipalities (Vancouver, Surrey and Burnaby) is 112, while in municipalities with a
population of 100,000 to 175,000, the average number per company is 20. For
municipalities with populations under 100,000, numbers range from two or three cars to
a high of ten cars.
Industry sources report that approximately 80 – 85% of owners drive their cars for at
least one shift. The second shift is usually covered through a lease agreement
negotiated on a monthly or yearly basis. Non-owner driven cars are also leased.
According to industry sources, lease rates for a single shift range from $1,500 to $2,000
per month. In addition the lessee is responsible for fuel, insurance, maintenance,
dispatch fees which average $850 monthly – and in some cases – must also provide the
car.
The ratio of taxis to population in the Lower Mainland varies from place to place, but on
average is 1:1381. Table 2 shows a breakdown of ratios by municipality. Because some
companies are licensed to serve in more than one municipality, these figures are not
totally accurate, however, they give a general idea of the range of ratios within the
region. Most other large municipalities in Canada have substantially lower ratios, the
national average being 1:714.

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Table 1: Licensed Taxi Companies Operating in the Lower Mainland
Location
Company
#Plates
Accessible
Plates
Abbotsford
Abbotsford Taxi
15
0
Central Valley Taxi Ltd.
18
n/a
Matsqui Taxi Ltd.
5
0
Agassiz
Agassiz-Harrison Taxi Ltd.
3
0
Aldergrove
Aldergrove-Langley
6
n/a
Burnaby
Bonny’s Taxi Ltd.
98
5
Burnaby Select Taxi Ltd.
4
1
Queen City Taxi Ltd.
11
2
Chilliwack
Bob’s Cabs (1973) Ltd.
10
n/a
Chilliwack Taxi Ltd.
10
2
Sardis Taxi Ltd.
5
0
Coquitlam
Gordon Wayne Wilgosh
1
0
Bel-Air Taxi (1982) Ltd.
34
2
Coquitlam Taxi (1977) Ltd.
26
0
Port Coquitlam Taxi Ltd.
12
0
Alouette Transit Systems Ltd.
7
n/a
Delta
Delta Sunshine Taxi Ltd.
26
3
Tsawwassen Taxi Ltd.
23
n/a
Maple Ridge
Meadow Ridge Taxi Ltd.
10
0
Syd’s Taxi (1984) Ltd.
10
1
Mission
Mission Taxi (1980) Ltd.
6
0
New Westminster
Royal City Taxi Ltd.
46
2
North Vancouver
North Shore Taxi (1966) Ltd.
84
1
Sunshine Cabs Limited
38
n/a
Richmond
Coral Cabs Ltd.
19
0
Kimber Cabs Ltd.
18
18
Richmond Cabs Ltd.
56
2
Surrey
Guildford Cab (1993) Ltd.
33
n/a
Newton Whalley Hi-Way Taxi Ltd.
50
2
Surdell Kennedy Taxi Ltd.
54
7
White Rock South Surrey Taxi Ltd.
45
4
Vancouver
Black Top Cabs Ltd.
160
1
McClure’s Cab (1984) Ltd.
40
0
Albert Gary Tarantino
1
0
Yellow Cab Company Ltd.
198
2
Vancouver Taxi
51
30
Total
1233
85

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Table 2: Ratio of Taxis to Population: Lower Mainland
Location
Population
Taxis
Ratio
Vancouver
543,071
450
1:1206
Burnaby
187,992
113
1:1164
Surrey
323,509
182
1:1778
Abbotsford
111,708
38
1:2940
Richmond
157,537
93
1:1694
Coquitlam/Port Coquitlam
157,081
80
1:1964
New Westminster
52131
46
1:1133
Chilliwack
63,080
25
1:2523
North/West Vancouver
126,655
122
1:1038
The overall supply of taxis is limited through regulation. The licence to operate a taxi
company with its accompanying certificates and plates can only be obtained initially
through the regulatory process. The MCC licences a fleet and stipulates the number of
vehicles that a licensee may operate. Each vehicle must have a motor carrier certificate
and plate. The Motor Carrier Act says that a licence may not be assigned or transferred
without the approval of the Commission, and that licensees must maintain “care and
control” of their operations. Nor may a “plate or certificate” be sold independently of the
licence. Each licensee is issued a specific number of plates which may be increased from
time to time through application to the MCC.
Within these parameters, the industry has created corporate structures through which
the transfer of certificates/plates is possible. Companies are structured so that all or a
part of individual plates/certificates are owned beneficially by individual shareholders.
Each share in a company gives the purchaser a portion of the company’s assets (real
estate, dispatch system, etc.) and a 50 per cent interest in one plate. So, for example,
Yellow Cab, a licensee with a total of 198 plates would have 396 shares – each share
including a 50 per cent interest in a certificate/plate. An individual shareholder with two
shares (i.e. 100 per cent of a certificate/plate) will commonly retain one share while

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selling the second share. Because the value of shares is very high, most sales are of one
share rather than the equivalent of a whole certificate.
The value of a share depends on various factors, including market demand, location,
whether the share is for a day or night shift and whether an airport licence is included.
The purchase price for the share may or may not include an actual car. While we cannot
state definitively the market value of a share, industry sources tell us that the price of a
single share (i.e. the equivalent of half a car) can range anywhere from $80,000 in
Coquitlam to a high of $210,000 for a taxi licensed for use in Vancouver and at the
airport. This means that the cost of a single certificate or plate (two shares) can be as
high as $420,000. This is considerably higher than any other major municipality in
Canada, and higher even than most of the major metropolitan areas in the United States
for which statistics are available. In New York City, for example, where only a handful of
licences were issued after a moratorium that lasted for more than fifty years, individual
plates (the equivalent of two shares in Vancouver) currently have a market price of
between $180,000 and $190,000 (US). Plate prices in Sydney, Australia are valued at
around $350,000 (AU)
7
while in Dublin, Ireland the average plate costs £80,000.
8
Table 3 shows the range of estimated prices paid for shares in the Vancouver area.
Table 3: Estimated Price for One Share in the Greater Vancouver Area*
Vancouver
$140,000 - $210,000
Burnaby
$75,000 - $100,000
New Westminster
$60,000 - $80,000
Surrey
$75,000 - $100,000
Coquitlam
$80,000
* Note: These are estimates only and don’t necessarily reflect actual sales.

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Regulation
The number of taxis in the Lower Mainland is controlled through the licensing structure
of the Motor Carrier Commission (MCC) and the bylaws of municipal governments. In
addition, the Vancouver International Airport Authority contracts with individual
companies for airport service. If the contracted companies do not have airport service as
part of their condition of licensing, they must request a change from the MCC. Most
licences in the Vancouver area, issued by the Motor Carrier Commission, are for five
passenger sedans. Competing forms of transportation such as limousines, shuttle buses
and courtesy cars either operate under different conditions of licence or are unregulated
and are not specifically included in this study.
The MCC, as a condition of licensing, stipulates the territory in which a company is
authorized to conduct its business. Companies can deliver passengers to any
destination, but are not generally allowed to pick passengers up or solicit business
outside their designated zones. That means, for example, that a Burnaby company
licensed only to operate with the City of Burnaby can deliver a passenger to Vancouver
or White Rock, but cannot be dispatched to or pick up passengers in those
municipalities. Some companies operate within one municipality, but many are licensed
to operate in more than one. Thus Surrey companies may also serve Delta, and North
Vancouver companies operate in West Vancouver. Any company whose area of
operation includes more than one municipality generally has to obtain a municipal
licence for each separate municipality.
In October of 1998, the MCC issued notice that it would not accept any applications for
licensing in the Lower Mainland which would alter the supply of taxis, or any other
applications for passenger services which would impact on taxi services.
The MCC delayed hearings on this matter until the completion of a study commissioned
by the Ministry of Transportation and Highways,
A Study of the Taxi Industry in British
Columbia
, (the Lanyon Report).

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The Lanyon Report did not comment directly on issues of taxi supply, although it did
touch on many of the factors that affect supply. It reviewed the effects of deregulation
of supply in various other jurisdictions, but did not make recommendations concerning
deregulation. It also refrained from making recommendations on the issue of boundaries
which is one of the primary factors influencing both supply and availability.
As a result of the recommendations of the Lanyon Report, the Province passed
legislation that eliminated the issuing of municipal taxi licences to companies lacking
MCC licences. Thus the Commission became the primary licensing body for taxi
companies throughout the province. At least some municipalities continue to grant or
withhold municipal licences to MCC authorized companies as well as to regulate service
and safety standards.
Municipal bylaws controlling licensing and standards for taxis vary from municipality to
municipality and are complicated by the confusion among some municipalities about
their powers under the Local Government Act (previously called the Municipal Act).
Several representatives of municipalities commented that they didn’t implement
standards and/or criteria for their local taxi companies because they felt they had no
authority to do so. Others have set in place vehicle and driver standards. The City of
Vancouver has the most stringent standards for taxi companies operating within its
jurisdiction, including standards of vehicle age, size and safety, driver qualifications and
means of operation.
In September of 1999, the MCC held a public hearing on the issue of the supply of taxis
in the Lower Mainland. As a consequence of that hearing, the MCC continued its
moratorium as it applied to “taxicabs” as defined by the Commission. However, the
moratorium was lifted on other forms of passenger transportation systems, for example,
limousines.
In March of 2001, the Commission notified the industry that it would be undertaking
consultations with industry, municipalities and other agencies and stakeholders in order
to gain a better understanding of perceptions about the supply of taxis and in order to

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identify factors that influence the supply of taxis in the region. The moratorium would be
continued until that consultation process was completed. (Appendix A: Notice to
Industry)

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Stakeholder Observations
Industry
Meetings were held with the two industry associations. The Vancouver Taxi Association
represents three of four companies operating within the City of Vancouver, Yellow Cab
Company, Black Top Cab Company and McClure’s Cabs. The BC Taxi Association is a
provincial organization representing many of the companies outside of Vancouver and
one company in Vancouver. The meetings were dominated by issues of boundaries,
enforcement, and regulatory flexibility. On the specific question of supply, there was
general agreement among the representatives of the Vancouver Taxi Association that
the city could sustain another 25 – 30 taxis with certain provisos, while the BC Taxi
Association was less certain of the need to increase supply.
Both associations, understandably, were strongly opposed to issuing licences to new
companies who might wish to enter the market. They would like to see any increase in
supply come in the form of additional certificates/plates issued to existing companies. As
noted above, share prices are very high in this region and shareowners were especially
concerned with protecting the value of their investment. There were suggestions by
both associations that new licences and/or plates should be added incrementally or as
temporary, time-limited plates while the impact on existing business is studied.
Both Associations said that the use by specific client populations as well as the weather,
season, and the time of month/week/day determine how busy they are. The Vancouver
Taxi Association reported a marked difference in demand between daytime and night
time shifts, as did several members of the BC Taxi Association. However, one
representative from a Surrey company said that an analysis of their trips sheets showed
no difference between the day and night time shifts – that both shifts averaged 1000
trips per day with 30 cars.

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One company, operating in the City of Vancouver and at the Vancouver International
Airport, provided us with their statistics for the year 2000 which are detailed in Table 4.
Table 4: One Taxi Company’s Annual Statistics: Year 2000
Average trips per cab
15,020
Trip cost average
$7.70
Average vehicle revenue
$115,647.77
Average wait time (normal conditions)
8 minutes
Average wait time (inclement)
14 minutes
Average travel time
14 minutes
Average distance traveled
3.25 kms.
YVR trips as percentage of total trips
1.56%
Percentage of YVR trips to downtown core
70%
Vancouver taxis are busiest at rush hour on a rainy day, and wait times for customers
during those times can be very long. Average wait times during normal periods for both
associations were reported as averaging 10 minutes under normal conditions (i.e. not
rush hour) and up to 25 minutes during peak times or inclement weather. With the
exception of Burnaby, whose patterns closely follow those of Vancouver, taxi companies
in the outlying municipalities, such as Surrey, New Westminster, and Coquitlam, are
busiest during the winter. Vancouver and Burnaby companies both profit from
Vancouver’s summertime tourism industry, while other municipalities experience a
slowdown in summertime business. In the words of one representative of a taxi
company in Surrey, “People don’t come to Surrey in the summer; people leave Surrey in
the summer.”
All companies report that they are very busy near the end of the month when social
assistance cheques are issued. They also reported a dramatic increase in the use of taxis
by social service and other agencies (e.g. Ministry of Human Resources, Insurance
Corporation of British Columbia, Workers’ Compensation Board) to transport their
clients.

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Table 5: Consumer Demand by Type and Time of Day
Vancouver Taxis
Suburban Taxis
4– 6 am
Airport trips
Airport trips
6 – 9 am
(Rush hour) Airport,
Workers, schools, cruise
ships
(Rush hour) workers,
schools, post office, airport
10 am – 2 pm
(Lull) workers moving
around downtown, seniors,
medical appointments,
MHR, WCB clients
(Steady) Seniors, medical
appointments, courier
services, MHR, WCB clients
2 pm- 5 pm
(Rush hour) workers,
schools
(Rush hour) workers,
schools, post office, ball
teams
5 pm – 7 pm
End of rush hour,
restaurants, shows
Handidart overruns, tour
bus drop-offs, restaurants
7 pm – 3 pm
(Very slow) except for mini-
rush at bar closing
bars, casinos, restaurants,
shows (including employees
of those businesses)
Weekends
(Busy) tourists, shows,
bars, restaurants
(Slow) shows, bars,
casinos, restaurants
Summers
(Busy) extra tourist volume
(Slow) Very limited tourist
activity, little school activity
Proximity to major transportation centres such as the Port of Vancouver and BC Ferry
terminals has an impact on demand, although in the case of the Port, the demand
comes in a very narrow window. Both associations complained about competitors who
either operate under different conditions of licence from the taxi companies, such as
limousines and shuttle buses, or who are unregulated, for example, vanpools.
HandiDart, a service for transporting people with disabilities, came in for a large share of

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the criticism as a subsidized competitor. While several companies also have working
relationships with HandiDart, taking their overflow, it is an uneasy relationship at best.
The associations suggested a variety of criteria for evaluating the need for an increase in
the supply of taxis. Wait times, population increases, increase in arrivals at the airport
and port were all suggested as factors to be considered. One representative from Surrey
felt strongly that no single formula is really workable because local factors vary
significantly from place to place. Several representatives from both associations pointed
out that wait times during rush hour are not likely to be significantly affected by an
increase in the supply of taxis, as traffic conditions (traffic gridlock, construction) are the
dominating factors during that time.
Both associations agree that there is a need for an increase in wheelchair accessible
vans. One company in Vancouver reported that demand for wheelchair accessible
service exceeded their capacity by 600%. A Surrey representative reported that the
addition of four wheelchair accessible vans to their company fleet had no negative
impact on ridership in the rest of their fleet, but rather brought them new ridership and
increased referrals from HandiDart.
The Vancouver Taxi Association pointed out that the wheelchair accessible vans
currently on the road are often used at venues like the Port of Vancouver, where
passengers tend to have more luggage than will fit in a conventional taxi. They pointed
out that the acquisition of non-wheelchair accessible vans would meet the demand for
increased carrying space. This would have the effect of freeing up wheelchair vans to
serve the customers who need them. The City of Vancouver recently amended its
bylaws to allow the use of non-wheelchair accessible vans. Companies wishing to take
advantage of this change by adding such vans to their fleets will have to apply to the
MCC for a change in their conditions of licence.
Both associations feel that the restrictions imposed by regulations make it more difficult
to run profitable businesses, and in discussing the possibility of an increase in supply,
had several suggestions as to the issuance of licences that would allow them to operate

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more efficiently. They talked about the need for more flexibility in hours of operations –
that a system whereby some plates could be used on a part time basis during busy
periods, rather than 24 hours a day would give them much needed flexibility.
It should be noted, however, that there appears to be some misunderstanding as to
regulation. There is no Motor Carrier licensing requirement that compels licence holders
to operate their vehicles 24 hours per day, so it may be that the motivation to keep cars
on the road all the t