Taxi drivers will find out this week what kind of compensation they can expect to offset competition from Uber and other ride-sharing services.
They were promised millions of dollars, but questions remain about whether the government can pull through.
In the last four years, many taxi owners in Quebec watched the value of their permits plummet.
Back then, a permit could sell for $200,000 – but today, they say they’re lucky to sell for $80,000.
The taxi industry in Quebec blames the arrival of ride-sharing services, and has been trying to force Uber out of the province.
Last year, Quebec extended an olive branch, announcing $44 million over five years to modernize the industry – and promising compensation for taxi owners.
“I think clearly in the case of some taxi drivers there’s been a reduction in the value of their permit, so the government is ready to eventually compensate those taxi drivers,” said Treasury Board President Pierre Arcand.
Nearly $250 million was allocated to the taxi industry in this year’s provincial budget – working out to approximately $30,000 per taxi license.
It’s not clear how the money will be distributed. The details will be announced Friday, according to provincial officials.
George Boussios, spokesperson for Taxis du Grand Montreal, says he’s waited months for the news, but worries the government’s offer won’t make a difference.
“I don’t want to sound greedy, but when your permit was valued at $220 thousand dollars and now you’re having a hard time selling it at 80, I think $30,000 is just a drop in the bucket,” he said.
Many taxi drivers are opting to drive for Uber instead, according to Boussios. For this reason, most cabbies will welcome any compensation at all.
“Everybody gets candies during the election campaign,” he said. “Maybe this is our candy right now.”
