Quebec will compensate taxi drivers up to $45,000 for Uber losses
Quebec is making an offer to its taxi drivers: financial compensation for losses due to ride-sharing services like Uber.
They’ll be eligible to receive up to $45,000 each to compensate for the drop in the value of their taxi permits since the arrival of Uber In Montreal.
The compensation amounts to about half of what they’ve lost – most permits are valued at $200,000.
The money was promised in this year’s provincial budget, with nearly $250 million allocated to the taxi industry.
“We think it’s totally within the realm of public policy for the government, for the state to compensate the loss of that value as the government would do with any other industry,” said Finance Minister Carlos Leitao.
But for drivers, although the compensation is welcome news, it doesn’t solve the bigger problem of Uber.
Since it set up shop in Quebec, the taxi industry has been trying to force it out.
Last year, the government announced $44 million to modernize the taxi industry to compete with Uber – which offers flexible work schedules and low operating costs.
Quebec is the only province in Canada compensating its taxi industry.
Leitao said drivers will be receiving their cheques in the coming weeks, and isn’t closing the door on a second round of compensation.