‘It’s not just about not buying Heinz ketchup. We’ve also got to think about who is providing the transportation.’
As the tariff war with the United States continues, the head of Ottawa’s primary taxi companies is pursuing an aggressive social media campaign to have consumers and city government buy local when it comes to getting rides around town.
That means pushing for the use of traditional taxi services rather than U.S.-based ride-sharing services such as Uber and Lyft.
“It’s not just about not buying Heinz ketchup,” said Marc André Way, president and CEO of Coventry Connections, which includes Blue Line, Coventry and Westway cab companies. “We’ve also got to think about who is providing the transportation. I want politicians to understand what’s going on. They’ve allowed groups of U.S. venture capitalists to enter the market with predatory pricing and tried to decimate the taxi industry.”
Indeed, taxi companies in Ottawa, like those in most North American cities, have been hit hard by the arrival of ride-hailing services, whereby passengers can access drives through phone apps. Uber arrived in Canada’s capital in 2014, followed by Lyft in 2017.
Since 2014, the number of taxi drivers in Ottawa has shrunk to 1,200 from 2,000.
Uber and Lyft are generally cheaper than traditional taxis, but the ride-sharing services are also subject to surge pricing, meaning higher rates during peak periods.
The popularity of ride-hailing services has blossomed around the world — a 2021 report showed there were 18 million Uber rides daily — but it’s a struggle for independent drivers to make a decent wage. Most of the profit goes south.
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It’s a subject that Way says needs more attention. While proud Canadians are increasingly checking grocery store shelves for homegrown products in anti-Donald Trump boycotts, he says people don’t often think twice about who is driving them around town.
“The money is exiting Canada,” Way said. “They don’t re-invest in local soccer and hockey organizations, in the Boys and Girls Club and Habitat for Humanity.”
Way has numerous other concerns, which he has shared on Twitter, Instagram and in taxi industry publications. He says ride-sharing services aren’t subject to the same rules, regulations and labour codes as traditional taxi companies. Taxi drivers, on the other hand, are also unionized, providing better protection to both themselves and passengers.
“Uber drivers have no (employment insurance), no benefits, none of that stuff,” he said. “They’re not recognized as employees.”
With tensions mounting on the trade and tariff fronts, he’s also asking city hall to take another look at the industry when they recommend what services to use.
In early February, Mayor Mark Sutcliffe said he was working with Ottawa council on a plan that would “prioritize Canadian products and services over American products.”
That, according to Way, should include ride-hailing apps as well.
“Everything they do is about circumventing the rules,” he said. “Why not apply tariffs to that if they want to work in Canada?”
There are only a limited number of Canadian-based ride-hailing apps.
Hovr, a Toronto-based company, has been operating since May 2004. It operates on a system where drivers are part of a “membership fee” model and are paid the full fare of the rides they deliver.
ReRyde, based in Richmond, B.C., is currently operating in Thunder Bay, Ont., Winnipeg and other Manitoba communities including Winkler and Selkirk.
URide is another Canadian service that primarily operates in more remote locations of the country.
Way, who also serves as president of the Canadian Taxi Association, is trying to build momentum for his campaign throughout Ontario and the rest of the country.
As popular as the ride-hailing apps have become, they’ve been banned in Denmark, Hungary, Thailand and Bulgaria, and there is limited access to them in Belgium, Turkey, Romania, Greece and Australia. Much of that is due to the loose regulations governing independent drivers and challenges from existing taxi companies.
Interestingly, Uber lost significant business back in 2017 when co-founder Travis Kalanik accepted a position as part of the economic advisory committee during Trump’s first term in office. Kolanik resigned that position following the backlash.
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