The political economy of cab fares

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 When Henry David Thoreau visited Montreal in 1850, his first observation was the city's unusually large number of taxis. "I never saw so many caleches, cabs, charrettes, and similar vehicles collected before," he wrote in A Yankee in Canada.

 It's the same today--which explains the cabbies' complaint that it's a tough way to make money. But perhaps relief is in sight. This week, the Quebec government announced that, beginning next month, just getting into a cab will increase by 25 cents to $2.50, while each kilometre traveled will cost $1.20 instead of $1.10.

 "It will be a good thing for the drivers, if they don't lose customers," says Richard Boyer, director of the MUC's Taxi Bureau. Experts predict an immediate reduction in demand for taxis after the price increase, which will hopefully recover some months down the road. If so, then the extra revenue will pay for the cost of gas, repairs, licenses and administrative fees--which have all increased since the meter rate was last set.

 But will the 30 per cent of drivers who rent--rather than own--their cars see any of this new money? "That depends on whether or not the guys they rent from increase their prices," says Boyer. Theoretically, rental prices could go up, and business slow down at the same time.

  But while consumers might have to tolerate both pricier rides and an upswing in driver disgruntlement, there are still so many cabs downtown that the fare hike shouldn't dampen the delightful phenomenon of emerging from a bar at 3 a.m. and causing a taxi drag race with a casual wave of the hand. : -John Edmonds

 

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