From the get go, this has been front and centre of the entire taxi industry’s minds: the City’s review of all aspects of the business. Rob Ford promised he’d reform the system, so many drivers got behind him during the election – http://www.nowtoronto.com/daily/news/story.cfm?content=177018, and many still support him now. He’s followed through on his promise, but when push comes to shove, where will his allegiances lie? There’s a lot at stake if things don’t change, and some pretty powerful interests in play.
The current licensing system profoundly affects the livelihoods of taxi drivers. It’s fraught with inequities that often leave the driver at the bottom of the system. But what’s a “driver”? It’s more complicated than you might think.
A license to drive a cab is just that and no more. You still need a car, but the important bit is a license to operate a cab – the piece of tin that’s on the back of the cab. But there’s different kinds of tin: “Standard” plate owners, “Ambassadors” and “W” (wheelchair accessible) plates. If you’ve got any one of those, and a car, you’re in business.
The standard plates are the valuable ones. They allow more than one driver, can be transferred, and hold a street value of around 300 grand. The great thing about them is their value just keeps going up, with no upkeep. A plate owner has no responsibility for the car you may be driving in, that belongs to whoever he or she may be leasing it to. And that’s profitable. Currently, a plate owner can get between $1600 and $2000 a month to rent a standard plate. And what does the lessee, usually one of the guys driving the cab, take home from that? According to a 2008 Ryerson and U of T study, it’s a pittance: an average $3.44 an hour. And that’s after working 12 hours a day, 6 days a week.
http://www.taxi-library.org/toronto_taxi_working_conditions.pdf
So in 1998 the City of Toronto decided to reform the system and introduce a new license: the Ambassador. If you’ve taken one of these, you’ll notice that they are usually well taken care of, well appointed cabs. That’s because the guy driving it, owns it. This owner-operator system succeeded in that respect, but was unfair in many other ways: licenses couldn’t be transferred, you couldn’t have a second driver, and you couldn’t even have someone drive your cab if you were sick.
All those three inequities became blatantly clear when a driver named Kahlil Talke was stabbed in the neck on Valentine’s Day, 2011. It’s a horrible story. While in hospital and then at home recovering from his wounds, Kahlil, an Ambassador, couldn’t of course drive, nor rent his taxi to another driver. And he had a family to feed.
At the same time, a driver named Asafo Addai (http://www.jitneyhack.
So the City’s feet were to the fire, and implemented this full review of the industry. We’re in the thick of it now, halfway through the consultations, and have been sitting in on almost all of them. They’re never dry, boring discussions of policy. The people in the room have been in the industry for decades. They’re passionate and solid individuals, positioning themselves to be heard, and fighting for what they see to be a just piece of the regulatory pie.
Meanwhile, the city is full of drivers cruising, looking for fares, looking to take home something, a little something more than last night’s take.
http://www.toronto.ca/licensing/taxireview/index.htm
Alex Williams






Michael | 04.22.12 at 11:06 am said…
Most of the things you have written are true. However, the person leasing a plate from an owner and buying his own car to put on the road is not making $3.44 per hour. Take this from a driver that has been in the industry since 1978. That may be what most drivers report as their income, but it is not true.
Do you really think that drivers would bare the expense of purchasing vehicles for twenty to thirty five thousand dollars, purchase care insurance for $6000 dollars per year, pay brokerage fees for $500 per month, pay an average vehicle maintenance fee over the life of a vehicle of $200 per month, just to make $3.44 per hour. In addition, do you really think that the demand to rent or buy a plate has seen leasing prices rise from $800 per month to $1800 to $2000 in the last 12 years, and the cost to purchase a plate rise from $80,000 to $300,000 in the same period, just so the lessees and purchasers of these plates can make $3.44 per hour. The answer is no. The truth is that a lot of drivers, lessees, and plate owners due quite well. That is why the demand for plate lessees and ownership is so high and prices are going up.
Another thing that bothers me is the Ambassador plate situation. The Ambassador owners knew when this program began the rules. So, now they want to win the lottery and turn the $600 per year lease fee they pay to the commission into a $300,000 lottery win. That would be a shame. The Ambassador program is a great program and as you said it has led to a greater number of well kept cabs on the road. Why get rid of the program. Instead, the commission should restart the issuance of regular plates. Those Ambassador owners would be able to put their name on the list for a regular plate. When a regular plate becomes available, the Ambassador owner would give up their Ambassador plate and a regular driver, who had his name at the top of the Ambassador plate list, would get that plate. These two list, one for a regular plate and one for an Ambassador plate, would not flood the market with 1400 new regular plates, which could have ill effects on those owners who presently are invested. In addition, it would maintain the Ambassador program, which is a good program and allows drivers who cannot afford to lease plates at the present rate from regular plate owners to be able to put their name on the Ambassador plate list and receive one. Then once they are Ambassador owners, they could put their name on the regular plate list. I think the priority should be to move drivers as quickly as possible from being just a regular driver, to an ambassador plate owner, to a regular plate owner. There is nothing wrong with different classifications of plates issued by the licensing commission as long as every driver has the ability to move from one classification to another based on the number of years they have been driving cab full time.
Eddie | 11.10.12 at 8:45 am said…
Most of what Michael says is correct. The real issue in the cab industry is the absentee owner. This happened because the City of Toronto allowed the sale of plates back in the late 1960s. Shortly after, leasing of plates was allowed. This started the creation of the multiple plate owner who has no interest in the taxi industry except to squeeze it for as much cash as possible. Absentee owners hire agents to lease their plates. These agents and other ‘middlemen’ are creating a huge problem for the shift driver and create no real wealth.
Imagine hailing a taxi and when a garage car pulls up there are already 5 people in the cab. The owner, the agent, the garage guy and the brokerage rep. The only person in that cab who is creating money for the industry is the poor shift driver. They are usually recent immigrants with limited English skills who have rent to pay and a family to feed. They can’t get a real job because they have no Canadian experience and have become an underclass driving around the cars of the wealthy for a pittance. They are forced to work in a cash driven, no receipt industry where HST is collected but rarely remitted.
When an Ambassador cab pulls up, the driver is the owner. There are no agents no garage men and if the driver wants to use one of the new taxi apps no brokerage either. That driver can make money. The real major drawback to the Ambassador program is the fact they can’t put on a second driver and there are no plans for what happens when the owner has a long term illness. The car must lay idle with no income coming in.
I say keep the standard plate grandfathered with provisions that when sold the buyer can only have one plate and tweak the Ambassador plate so the owner/driver will have something to retire on.
Mohammad | 11.12.12 at 8:47 pm said…
In my opinion the best option for every body is to make toronto an open market for taxi’s so who ever want to drive taxi in the city of toronto just get the license and pay the fee to the city and get a plate to drive because the book value of a plate is $7,000 and people who bought them for $300,000 they also knew this fact so its their choice to buy one with the market or black market value price.
There is no need for lessee’s or agents because the driver can provide all the services and do all duties of those people like agents of lessee’s but for implementation of this the city of toronto or MLS need to improve their duties also train the drivers for improved serives.
Hamzah ali | 04.17.13 at 2:08 pm said…
April 17 2013
I read all the comments here …. I’m a taxi driver … Just want to say one thing…. I pay 700$ weekly for my lessee and I drive 6 days and … It takes me 3.5 day to make 700 … So my point is city should take a look of this
Thank you for reading my comment