Taxi industry says it rejects surge pricing adopted by city council

An organization that represents cabcompanies in Torontosays its taxidrivers will not implement the surge pricing adopted by city council earlier this month becauseit is unfair to customers and bad for business.

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City council voted on May 3in favour of new regulations governing the taxi industry, including surge pricing on fares booked through a smartphone app.

Rita Smith, executive director of the Toronto Taxi Alliance, said Wednesday that thetaxi companies "want nothing to do" with surge pricing.

"We do not consider this to be capitalism. We call itextortion," Smith told reporters on Wednesday.

Smith said surge pricing would be difficult for regular customers who set aside funds for taxis every month.

If, for example, they had to pay 10 times the fare when it rains, when there is a Raptors game downtown, or when transit service is disrupted, it would make it difficult to establish abudget, she said.

"Theirlives would be impacted massively," she said.

"Surge pricing has no place in superior customer service, and is not an activity engaged in by professionals especially not professional drivers responsible for the safety of vulnerable passengers.

"We believe that a young woman heading home with $20 in her wallet should be confident that a cab ride which cost $15 on Tuesday will still cost $15 on Saturday, not $30, $45 or $90," Smith said.

"A senior citizen travelling to a doctor's appointment should feel secureknowing in advance what the charge will be whether or not it is raining, or if the TTC is down."

Taxi drivers should not have to deal with intoxicated passengerswhoare furious about being chargedquadruple the normal rates in the middle of the night, Smith said.

"We don't see it as helping business," she said.

Beck, City, Co-op, Crown andDiamond are among several companies that have said "they will not implement surge pricing in their business models," according to astatement released Wednesday by the taxi alliance.

The Canadian Taxicab Association also rejects the model, the statement said.

Senior citizen Nuala O'Shea saidshe is opposed to the practice.

"Things need to be predictable. I would feelvery unhappy if that were introduced," she said.

Smith said the alliance does not planto launchlegal action against the new regulations and supports other measures adopted by council.

The alliance said thatthe followingcompanies and organizationsreject the surge pricing model:

Able-Atlantic Taxi, Beck Taxi, Best Choice Taxi, City Taxi, Co-op Taxi, Crown Taxi, Diamond Taxi, Independent Cab Owners Co-operative Incorporated, Maple Leaf Taxi, Association of Fleet Taxi Operators of Toronto, A4U Taxi, Bangladeshi Taxi Drivers' Association, Canadian Taxicab Association, Peter's Taxi Ltd and Avonhill Limousine, Taxi Action and United Taxi Workers Association of GTA.