Hamilton taxi drivers struggle to pay plate licensing fees during COVID-19 pandemic

Cash-strapped Hamilton taxi drivers struggling to pay their annual plate licensing fees because of COVID-19 will huddle with city officials this fall to try to find a solution.

Because without one, drivers can't be on the road.

Blue Line Transportation Ltd. asked city council in a letter dated Oct. 9 to defer the Sept. 30 licensing deadline to Dec. 31. That will allow drivers time to meet with the city and brainstorm how they can manage their crippling business woes.

The pandemic has been hard on the industry, said Blue Line president Anthony Rizzuto, and drivers need a break.

Blue Line employed, directly or indirectly, more than 600 Hamilton residents in 2019, he said in a letter to city councillors. Right now, it's barely one-third of that.

"Blue Line is operating with a little over 58 per cent of its 'normal' fleet size servicing Hamilton customer demand that has grown since March, but only sits at roughly 60 per cent of where it was in October of 2019," Rizzutowrote. "The pandemic has created a long-term shift in operations and consumer behaviour."

Councillorssay they won't waive any fees, but did approve anextended deadline. That will give the company time to meet with Hamilton's planning and economic development department.

The annual licensing fee is $661 per taxi. Coun. Tom Jackson (Ward 6), who moved themotion, says the fees equateto more than $400,000 per year for the city.

Cab companies struggled before COVID-19

Cab companies were alreadystruggling before the pandemic. A February city report says 244 vehicles have lost affordable insurance coverage recently, and at least 105 drivers havesurrendered their plates. The industry has also struggled to compete withUber and other ride-hailing companies.

"For many retirees, those plates are invaluable at the time they are no longer driving and they sell them. It's a form of retirement income," Jackson said.

"I have many drivers in my constituency who are of a multicultural background as well. Many of them came to this country, have degrees from their old country and are driving a taxi, it's their only source of income."