Associated Cab drivers upset by deregulated fares

Calgary cab drivers say they are the ones paying the price of new lower taxi fares.

At least two taxi companies have announced they're lowering their fares.

And while this is good news for those who take taxis, cab drivers say the break is coming out of their pockets.

On Wednesday, Associated Cab owner Roger Richard told the Eyeopener his drivers were supportive of the change.

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"They all agree we got to be competitive and we've got to do more for less and we've got to get more people to use taxis instead of other forms of transportation," he said.

But according to longtime cabbie Narinder Tunber, that's not the case.

"It's the wrong way to go," he said. 

The 30-year veteran driver has been driving with Associated for the last four years. When he heard about the fare decrease, he went to talk to Richard, asking him to decrease the rent drivers pay for the cabs.

"I asked, 'If you went and decreased the meter 12 per cent, the rent should be decreased too,'" Tunber said. 

"I told him, 'If you're not going to take the rent down, I am just going to keep the same meter rate,'" he continued.

"[Richard] said if you're going to keep the same meter, then he'd take that car away from me."

Richard told CBC News Thursday the fare reduction is about short term pain for long term gain.

"We are confident it will result in an increase in their overall income in the near future because of ridership increases," Richard said.

He said the company will monitor the change in weeks ahead and make adjustments as needed.

Lower fares, smaller paychecks

On Monday, changes to Calgary's livery transport bylaw came into effect that allow taxi operators to set their own fares.

The old minimum rate of $3.80 for the first 120 metres or any portion of a trip, is now the maximum rate.

That's going to make it difficult for Tunber to be able to put "bread on the table" for his family, he said.

"It's too bad for us because it's the money out of our pocket not his money," Tunber said. "He's going to make the same money and we're going to lose money."

Richard and other owners have said they're optimistic that lower fares will encourage more people to take taxis. Business right now is slow, Tunber said, estimating that he's making about 30 per cent less.

Abdel Hassan has been driving with Associated for close to two years. He pays about $450 a week to rent the cab from Associated.

He acknowledged the need to adjust prices to stay in line with the economy, but said he's making a lot less than he used to.

"These days, at least it's a fair price for [passengers]," he said.

"I feel sad," added Hassan, "but what are we going to do?"

Delta Cab, too, will lower its rates. Mayfair Taxi and Checker Yellow Cab have said they are considering their options.

Should cab companies lower the rent for drivers? Contact the Eyeopener at 403-521-6209, email us or send us a tweet to @cbcEyeopener.

With files from the CBC's Falice Chin and the Calgary Eyeopener.