Uber returned to Calgary on December 6, and could soon be back on Airdrie streets. Local taxi companies feel they have a reason to be worried.

"The biggest challenge that we will see is that we will not be able to compete with the taxi rates because they are locked down," said Mirza Baig, Manager with Airdrie Yellow Cab.

"[Uber] will be able to keep cutting fares, because they don't own the vehicles. So definitely it will be a big challenge."

Baig explained that Uber is required to set a base fare of $3.20, but can charge whatever they want per kilometer, whereas Airdrie taxi companies are required to charge a base fare of $3.00 and an additional $1.82 per kilometer. This set up would allow Uber to undercut fares compared to other taxi companies in the city.

Baig said Airdrie Yellow Cab had previously made a proposal that would allow individual taxi companies to set their own rates, similar to the model adopted in Calgary. A majority of other cab services in the city as well as City Council rejected the proposal.

 

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