City taxi industry concerned about losing market share to Uber

Lee Griffi, Editor

The owner of Woodstock’s United Taxi recently presented to city council, highlighting his concerns over the emergence of rideshare companies in the Friendly City.

“I am here to represent the taxi industry as a whole to raise a concern about a competitive entity operating within Woodstock, namely Uber, without regard for regulations under the city bylaw,” explained Ryan Raycraft.

He took to social media to inform residents of his delegation, something that drew a considerable response on both sides of the issue.

“There did seem to be a real concern about the importance of competition and choice. My intention here tonight is not to be anti-competition but instead stop the anti-competitiveness from continuing.”

Raycraft said an entity undercutting an established, regulated industry, without itself being regulated and held to the same standard, is anti-competitive. He added taxi companies can’t compete with the price of Uber because they are bound by a licensing agreement with the city.

The industry has already been downsizing recently, as proven by fewer taxis on the road.

“This year, Kendall reduced its number of plated taxis from 20 to 15. United removed its second in two years to 13 plated taxis. In total, 28 operating taxis, which is the lowest in more than a decade.”

The Echo did some research and an Uber ride in the city can be less than half of the $12 to $16 cab ride in town, depending on the distance travelled.

Raycroft said Uber made a substantial price cut in 2024, a move he said appeared to be intentional to gain market share.

“Prior to early 2024, taxi pricing in comparison to Uber was pretty close, within about 10 per cent…since then, Uber rates have dropped substantially, somewhere between 30 and 40 per cent. We have seen a gradual reduction in call volume as a result.”

Raycraft put forward three potential outcomes following a review: enforce the current taxi bylaw, which would result in fines being issued by bylaw to rideshare drivers for operating as an unlicensed taxi in the city of Woodstock, regulate rideshare drivers by including them in the taxi bylaw, or deregulate the taxi industry altogether.

He added the playing field is far from level.

“Feb. 15 marked an annual license renewal for the taxi industry. (We) spent thousands to safety vehicles and provide safety certificates to the city, complete criminal record checks for drivers through Woodstock police, and obtained plate and licensing from the city for vehicles and drivers. Uber did not have to do any of this.”

Coun. Deb Tait made a motion to have staff come up with a report to look at the impact of unregulated and unlicensed ridesharing services. It was approved unanimously with Coun. Mark Schadenberg declaring a conflict of interest as he is a driver with Kendall.

Some Ontario cities have been able to incorporate rideshare companies under their taxi bylaws, including Kingston, where drivers must meet local licensing requirements. Port Hope went the other way, passing a new bylaw that deregulates its taxi industry to allow ride-share options, effectively clearing the way for Uber-style services to operate under more flexible local rules.

Revised Community Improvement Plan

Council voted to adopt a revised Community Improvement Plan (CIP) for Woodstock. CIPs outline incentive programs the city can offer to promote and encourage renewal and redevelopment, such as loans and grants for façade and building improvements or residential intensification. Following a review of the existing Downtown CIP, staff recommended developing a single plan for the entire city. The revised CIP also expands the range of potential incentive programs council can consider implementing in the future.

2026 Budget Overview

Staff provided Council with an overview of the 2026 operating budget. The proposed tax rate increase for the city’s base budget is 2.9 per cent, which represents an increase of $93.76 on the property tax bill for the average single-family household. If council approves all additional requests being put forward, the tax change would increase to 6.81 per cent or $220.40 for the homeowner. The base budget is the estimated cost to maintain existing levels of service and programs. Additional requests include costs for improvements, new services and initiatives, staffing and equipment.

FAIR Program

Council approved a 20 per cent increase to the income cut-off limits for the Fee Assistance in Recreation (F.A.I.R) program. It helps low-income residents access city recreation and leisure programs and buy transit passes at a reduced price. To be eligible, residents must have an income that falls below the cut-off for their family size. The 20 per cent increase will enable more individuals and families to qualify.