Quebec government expected to compensate taxi drivers for Uber competition

Ride-sharing services caused taxi permits to drop in value

Quebec taxi

Quebec plans to compensate taxi drivers for the drop in value of taxi permits caused by ride-sharing services, according to the CBC News.

The province laid out nearly $250 million for the taxi industry in its 2018 budget. Furthermore, it dedicated some $44 million of that to the modernization of the industry.

According to CBC News that works out to roughly $30,000 per Quebec taxi licence.

However, an official announcement will come later this week regarding the compensation. Revenu Quebec will send letters to licence-holders following the announcement. The letters will indicate the compensation they’re eligible for.

However, $30,000 isn’t much according to George Boussios. Boussios is a spokesperson for Taxis du Grand Montreal, an association of Montreal taxi companies.

Boussios told CBC News that the impact ride-sharing services like Uber have left taxis in a bad position. Permits, according to Boussios, now sell for $80,000. Four years ago, they sold for $200,000.

Ride-sharing services have affected incomes and pensions as well.

Additionally, the Quebec government must hand out the compensation package to drivers by October 1st, 2018.

Abdallah Homsy, president of the Regroupement des intermédiaires de taxi de Québec (RITQ), told CBC News that their conditions decided the amounts should be paid before the provincial election.

However, Homsy says it will be a ‘hot topic’ during the election if taxi drivers don’t get what they want.

However, it’s important to note that Uber’s relationship with the Quebec government is tenuous. The company currently operates under restricted rules as a sort of pilot project.

Source: CBC Via: iPhone in Canada