(taxi - new) · peachland taxi and current taxi are new entrants in the market, receiving board...

Passenger Transportation Board Decision

Licence Application Decision (Taxi - New)

Application # 338-16 Applicant West Kelowna Taxi Services Ltd. Trade Name (s) West Cabs Principals RAVINDRAN, Aravindhan Address 2475 Dobbin Road, Unit 3, PO Box 26035, West Kelowna, BC V4T

2G3 Applicant’s Representative

Boughton Law Corporation Honourable Wally Oppal, Q.C., Barrister & Solicitor

Application Summary

Special Authorization: PDV

New taxi service in Peachland, West Kelowna and Kelowna areas with 23 vehicles. 20 vehicles will be conventional taxis. All others will be accessible taxis

Rates

• Metered rates Date Published in Weekly Bulletin

November 23, 2016

Submitters (and representatives)

• Checkmate Cabs Ltd. • BHATTI, Resham Lal, dba Apple Cabs, represented by Colby

Johnson Law Corportation, Colby Johnson, Barrister and Solicitor

• BC Taxi Association • Kelowna Cabs (1981) Ltd. • Classy Cab Corporation • Lake Country Taxi Ltd. • Trendtham Group

Enterprises Inc. • Westside Taxi 1998 Inc.

Represented by: McLachlan Brown Anderson William A. McLachlan, Barrister & Solicitor

Board Decision

The special authorization is approved.

Terms and conditions of licence are approved as set out in this decision.

Rates sought by the applicant are approved as set out in the application summary.

Decision Date May 25, 2017 Panel Chair Mary Sjostrom Panel Member Brenda M. Brown

Taxi Decision

Passenger Transportation Board

I. Introduction

This is an application from West Kelowna Taxi Services Ltd. (“West Kelowna Taxi”) to start a new taxi service in the West Kelowna and Kelowna areas. West Kelowna Taxi is applying for a passenger transportation licence with a “Special Authorization: Passenger Directed Vehicle”. The applicant seeks to operate 23 taxis, including 3 wheelchair accessible taxis (WATs). West Kelowna Taxi proposes to pick up passengers from points along:

• Hwy 97 from the Okanagan Lake Provincial Park to Bailey Rd. • Westside Rd. from its southern Junction with Hwy 97 (near the WR Bennett Bridge)

to Elliot Rd. • Hwy 97C from Hwy 97 to Brenda Mine Rd. • Hwy 33 from Kelowna to the Junction of Hwy 33 and Big White Road (excluding Big

White Road and Big White resort) Passengers may be dropped off anywhere in B.C. The applicant also seeks authority to pick up passengers in the destination area and bring them back to the Kelowna area if the request is made before the trip ends or the passengers have an account with the company.

II. Background

West Kelowna Taxi is a new entrant to the taxi market in Kelowna. Dr. Aravindhan Ravindran is the sole director of the company. A team of 6 will lead the company. In support of this application, West Kelowna Taxi provided the following documents.

• PDV vehicle proposal • Condensed Operating Plan • Service Area • Financial information • Proposed Rates & Rules • Public Need • Public Explanation • Municipal Notices • Disclosure of Unlawful Activity &

Bankruptcy • Accessible Service Plan

• Declaration

This application was published on November 28, 2016. The deadline for submissions was December 2, 2016. The applicant submitted its reply to submissions on February 14, 2017.

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After reviewing the application materials, on March 21, 2017, we asked West Kelowna Taxi to provide clarification on a number of matters, including: company operations; survey methodology; rationale applying for 20 conventional taxis and 3 WATs; placement of vehicles in the requested service area; and its financial model. The applicant responded on April 6, 2017. We consider the responses in our reasons below. Kelowna Taxi Market Table 1 below sets out the taxi companies approved to operate in the area for which West Kelowna Taxi is applying to operate. Company Trade Name Originating

Area Pt Licence # Vehicles Wats Active

Identifiers (As Of May 1,

2017) Classy Cab Corporation

Kelowna Cabs Kelowna

and points on Highway 97 (about 40 kilometers north and south from Kelowna) & Highway 33 to Big White Road

70532 4 0 4

Kelowna Cabs (1981) Ltd

Kelowna Cabs

70419 44 4 44

Trendtham Group Enterprises Inc

Kelowna Cabs/Star Taxi

70742 11 0 11

Westside Taxi 1998 Inc

Westside Taxi

70791 9 3 9

Checkmate Cabs Ltd.

70415 22 2 22

BHATTI, Resham Lal Apple Cabs

70360 4 0 3

Current Taxi Ltd. Current Taxi Kelowna, West Kelowna, Peachland, Lake Country

72289

2 0 2

FAHANDEG-SADI, Farhad Comfort Taxi Kelowna

72303 1 0 1

Lake Country Taxi Ltd

Lake Country Taxi & Shuttle

Lake Country/ Kelowna Airport & points north

71138

4 0 3

BC Brand Builders Inc

Peachland Taxi

Peachland 72279 2 0 1

Totals 103 9 100 • Licensees highlighted in blue are corporately related and operate as part of the Kelowna Cabs Group • An “activated identifier” means that the Registrar of Passenger Transportation has issued identifiers and

certificates that enable the vehicle to be on the road as a taxi.

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Peachland Taxi and Current Taxi are new entrants in the market, receiving Board approval in 2016. Comfort Taxi has been operating for a number of years; however, ownership was transferred in 2016. The remaining licensees are established companies who have served the Kelowna area for many years. Since 2005, the number of taxis approved to operate in the Kelowna, West Kelowna and Peachland area has increased by 29%.

III. Relevant Legislation Division 3 of the Passenger Transportation Act (the “Act”) applies to this application. The Act requires the Registrar of Passenger Transportation to forward applications for Special Authorization licences to the Passenger Transportation Board (Board). Section 28(1) of the Act says that the Board may approve the application, if the Board considers that:

(a) there is a public need for the service the applicant proposed to provide under any special authorization.

(b) the applicant is a fit and proper person to provide that service and is capable of providing that service, and

(c) the application, if granted, would promote sound economic conditions in the passenger transportation business in British Columbia.

We will consider each of these points in making our decision.

IV. Rationale and Submissions

(a) Applicant’s Rationale The applicant seeks to provide fast and reliable taxi service in West Kelowna and Peachland, which are areas in the Okanagan with limited taxi service. West Kelowna Taxi will provide a diversity of fleet, including vehicles that seat more than 6 passengers, high end all wheel drive vehicles, wheelchair accessible vans and pickup trucks. Vehicles with increased seating capacity will enable transportation of larger groups. West Kelowna Taxi will provide a professional and highly skilled service and plans to utilize a high technology dispatch system to ensure safe and efficient service.

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Its plan is to provide residents of the community with more diversity in their transportation options, and to break with the monopoly of existing taxi companies. It plans to address the high demand for taxi transportation by both businesses and individuals in the communities it proposes to service.

(b) Submissions & Applicant’s Response

Seven taxi companies and one association made submissions opposing applications. These are: • Kelowna Cabs (1981) Ltd. • Classy Cab Corporation • Lake Country Taxi Ltd. • Trendtham Group Enterprises Inc. • Westside Taxi 1998 Inc.

(These 5 licensees, referred to as the Kelowna Cabs Group [KCG], are corporately related and submitted a joint submission.

• Checkmate Cabs Ltd. • BHATTI, Resham Lal, dba Apple Cabs • BC Taxi Association

With the exception of Lake Country Taxi Ltd., all taxi company submitters have authority to pick up passengers in Kelowna and surrounding points on Highway 97 (about 40 kilometers north and south from Kelowna) and Highway 33 to Big White Road. This is the originating area requested by the applicant. Opposing submitters made similar claims, namely that the taxi market in Kelowna is served adequately by the current taxi companies and approval of this application would have a negative impact on taxi services in Kelowna. Other points made include:

• West Kelowna and Peachland do not have the population to sustain 23 additional cabs; therefore, West Kelowna Taxi will be forced to operate in Kelowna and at the airport.

• Current companies do not operate to maximum capacity on 3 or 4 days of the week. The KCG notes that from Sunday to Wednesday approximately 50-70% of its fleet is on the road. It provided data claiming to confirm this statement.

• KCG stated that most of Kelowna, West Kelowna and Lake Country taxi patrons are served within 10 minutes or less. It provided data from June 1-June 15, 2017 that it claims corroborates this declaration.

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• KCG notes that, at times of high demand, such as the festive season or summer, it has applied to the Board for Temporary Operating Permits to meet short term spikes in demand. During this period, the majority of customers were served within 10 minutes, excluding bar closing and on Friday and Saturday nights in summer.

• The applicant’s principal does not appear to have a background in the taxi industry. Applicant’s Reply The applicant responded to submissions on February 14, 2017 and provided additional support for its application. It noted such things as the increase in population in the Kelowna area, additional support letters highlighted need and that it was targeting an expanded market. Its specific response to the submitters opposing the application noted that:

• Two operators control 93% of the taxi service in Kelowna and this may contribute to poor service quality

• In Kelowna there are comparatively few wheelchair accessible or high end taxis • The submissions are self-serving and inconsistent. Although the submitters say

there is no need for more taxis, since 2011, they have made “no less than 45 requests for vehicles”

• Objective analyses from studies commissioned by the applicant refute submitters’ arguments

The Board gives more weight to submissions that back up claims with facts or details. We have considered the submissions and the applicant’s responses in our review of this application.

V. Reasons for the Board’s Decision

(a) Is there a public need for the service that the applicant proposes to provide under special authorization? Applicants should supply information that is factual and objective to demonstrate public need. They should demonstrate that there are people who would use the service. Applicants should explain why they are applying for a specific number of vehicles.

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The Board wants to be satisfied that there is a reasonable connection between the number and types of vehicles requested and public need. The applicant presented the following material as evidence of public need for a new taxi service. A. Thirty one letters of support from Kelowna, Peachland and West Kelowna local

governments, businesses and individuals. • Mayors of Kelowna, Peachland and West Kelowna support the application for more

taxi service in the various areas. • West Bank First Nations, with a population of over 800 band members, 9,000

residents and 400 businesses, supports business concepts that diversify employment and services.

• Greater Western Board of Trade and The Standard Hospitality Association promote local business development.

• Kelowna International Airport, YLW, would allow the applicant to operate from the airport.

• Twelve letters from individuals, five from small businesses and seven from hotels and resorts. The following were the major issues reported by the supporters: 9 supporters noted usual wait times of 20-25 minutes and often up to 45

minutes. Poor service at the airport was reported by 3 supporters. 14 attested to the need for a taxi service located in West Kelowna. 14 also mentioned the need for larger capacity vehicles, seating 5, 6 & 7

passengers. 3 reported poor customer service. 8 reported driver issues. 4 cited vehicle standard issues. 7 supporters requested high end luxury vehicles.

• One resort wrote that “the City of West Kelowna doesn’t have a designated taxi service. It is dependent on another city for taxi transportation. The average wait time is 30-40 minutes and during long weekends, events or summer season, taxi service is more than an hour and sometimes even unavailable. Due to the long wait times, guests are suffering to take an early morning flight because of the unreliable service.”

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• Another entity reported that there is “a huge stress on late night transportation which can only be rectified with additional service.”

• Five letters of intent from hotels/resorts/businesses. These are non-binding

agreements and set out a basic understanding reached to date and indicate a potential willingness to use West Kelowna Taxi on a priority basis. Three potential taxi service contracts are for luxury high end vehicles, 6 passenger taxis that provide service within 10 minutes of a request. Of these entities, 5 are located in West Kelowna and 3 in Kelowna. An additional contract is in process.

B. 2016 Census

• The Kelowna metropolitan area had a population increase of 8.4% from 2011 to 2016. Kelowna increased by 3.1% and West Kelowna by 5.3%. Peachland increased by 6.8%. The population of the area is approximately 195,000. The population of Westbank First Nation is approximately 9500 residents.

C. Geographical conditions, population trends, community and economic plans for

Peachland, West Kelowna and Kelowna • Peachland has a population of 7000. Wait times can be 45 minutes to an hour if the

taxi is coming from Kelowna. It is located 25 kilometers south of downtown Kelowna. Peachland has instituted various community and development plans as it experienced rapid growth in the past few years. As a resort destination, its economy is impacted by the growth in tourism. A new taxi company with 2 vehicles was recently approved by the Board to provide service in Peachland.

• West Kelowna has a population of 44,000 and does not have a designated or dedicated taxi company. It is spread over 124 square kilometer radius comprising various communities and is 27 kilometers from the Kelowna airport. Much of the area is hilly with curvy roads. Some of the resorts are only connected by Westside Road, which takes about 35-40 minutes from the WR Bennett Bridge that connects West Kelowna and Kelowna. Existing taxi service is dispatched from Kelowna. Community plans are in place to enhance the economic development. Business licences have increased almost 21% over the past 4 years. The Westbank First Nation has issued 404 business licences. Being a tourist driven area the demand for passenger transportation is higher. Passengers want taxis that seat 5 passengers or

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more and high end vehicles. Residents of West Kelowna have the highest income in the Okanagan Valley.

• Kelowna is the 3rd largest metropolitan area in the province. The city is 212 kilometers square. Kelowna is spreading to the outskirts in all directions. The distance from Okanagan Lake Provincial Park to Bailey Road is 94 kilometers. The distance from the airport to Bailey Road is 35 kilometers and from downtown Kelowna to Okanagan Lake Provincial Park is 35 kilometers. Wait times to these 2 points can be close to an hour.

• The student population of UBC Okanagan grew 14% from 2005 to 2015 and is now about 8400.

• The Kelowna airport, YLW, is the eleventh busiest airport in Canada. 2014 had a 6.5% passenger growth from 2013. Four out of the first five months in 2016 were record breaking months.

• The applicant says that there is very limited transit bus service in the areas under consideration and in some locations completely unavailable.

D. Other taxi service in the area.

• West Kelowna Taxi states that current operators have been unwilling to add higher passenger capacity vehicles to their fleets. It further states that 15% to 20% of the public demand high end luxury vehicles. (Kelowna Cabs and Checkmate Cabs dominate the market.)

• The total number of wheelchair accessible taxis operating in the greater Kelowna

area is nine. There are no conventional taxis that seat 6 or more passengers, only 2 high end luxury vehicles and no pickup trucks. West Kelowna Taxi intends to serve an alternative market that is not being served by the present companies.

• The applicant proposes a fleet composition of 3 accessible vehicles, 2 standard

hybrid, 2 large hybrid, 9 mini vans, 6 high end luxury vehicles and 1 truck. It states that it is appealing to a different customer market. The applicant states that the 8 contracts it has secured will occupy 60% of its fleet. The rest of the fleet will fit into the marketplace without affecting existing taxi companies.

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E. Commissioned Reports 1. An Industry Perception Survey conducted by Csek Creative • For several weeks Csek Creativve ran a survey utilizing KelownaNow, a media outlet

platform, and boosted through Facebook. The article and survey focused on transportation needs in the Kelowna and West Kelowna area. The survey received 373 submissions and generated a further 84 reactions and 246 comments on Facebook. Given the estimated population of the target market, the survey has a 95% confidence level with a 5% margin of error. Many respondents wrote comments which were included with the report.

• Highlights of the survey are as follow: Most respondents were from Kelowna. Most used taxis 1-10 times per year. Taxis were mainly used to and from bars, nightclubs, events, parties. Frustration with current taxi service was mainly due to long wait

times and lack of taxi seating capacity. Unavailability of 5 or more passenger taxi capacity. Most respondents replied average wait time was 30 - 45 minutes. The majority rated driver service as poor to average.

2. Kelowna Regional Taxi Demand and Supply Economic Review by Cascadia

Partners (a) Introduction

Cascadia was requested to develop a report to provide evidence that there is a public need for a new taxi service and that approving this application would promote sound economic conditions in the transportation industry.

(b) Demand for Taxis is Increasing in Kelowna Population has increased by 8.4% over the last 5 years and is forecasted to grow at a similar rate for the next 10 years. The elderly population (85+ years or older) in particular has grown by about 24% since 2011 and is forecasted to grow by an additional 21% by 2021. The reliance on transportation, other than driving one’s own car, increases with age. What is commonly noted is the need for accessible transit and taxis service after the age of 85 years.

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i. Population Growth

Area 2016 Population

2011 Population

Population Increase (%)

2016 Dwellings

2011 Dwellings

Dwelling Increase (%)

Kelowna 127,380 117,312 8.6 57,433 54,760 4.9 West Kelowna 32,655 30,902 4.4 13,190 13,038 1.2 Lake Country 12,922 11,708 10.4 5,897 5,217 13 Peachland 5,428 5,200 5.7 2,749 2,652 3,7 Others 16,497 14,717 12.1 9,105 8,169 11.5 RDCO Total 194,882 179,839 8.4 88,374 83,836 5.4

According to BC Stats projections, the population of the Central Okanagan Regional District is forecasted to increase by a further 8.5% by 2021.

ii. Tourism Tourism and visits to Kelowna are increasing with hotel utilization increasing by 12% and visits through the Kelowna Airport increasing by 20% from 2012 to 2016. The number of visitors to the Visitor Centres in the region, increased by 6% from 2012 to 2016. Hotel occupancy increased to 64% in 2016 from 52% in 2012.

iii. Development in Kelowna There has been significant development and construction activity in 2016. There were 900 development applications and 7,400 construction permits issued to October 2016. West Kelowna experienced a 21% growth in business licences granted. This growth in development across the region has spurred additional economic activity.

(c) Taxi Supply in Kelowna Kelowna has fewer taxis per capita relative to comparable Canadian cities. There are 103 taxis approved to operate in Kelowna and area, with 2 companies controlling 93% of these taxis. Four new taxis have been approved in the last 5 years, a 4% increase.

(d) Taxi Service and Competition The current service levels are not sufficient and Kelowna would benefit from a new market entrant.

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i. Current Service Levels – public perception The Csek Creative survey with 373 submissions showed that approximately 25% of respondents named wait times as the top issue and 20% of the responses related to a lack of accessible and high occupancy taxis. One third of the respondents rated the quality of taxi drivers as poor. KCG’s data indicates poorer service, regarding wait times, in West Kelowna with average wait times exceeding the service target.

ii. Competition Data provided by the KCG as part of their submission to this application, indicates longer wait times for the zones 330 (Glenrosa) and 340 (West Kelowna). The taxi market in Kelowna is essentially a duopoly. Numerous studies of the taxi industries show how increased competition results in improved service. The Canadian Competition Bureau’s recent review of the taxi industry found that limiting the number of taxi operators leads to higher prices, longer wait times and poor customer service.

(e) Conclusion These market conditions are supportive of a new entrant who can address some of the service challenges, by increasing coverage in West Kelowna and addressing the lack of high capacity and accessible taxis. Strong evidence of the demand for taxi service in the Kelowna area is due to a combination of population growth, changing demographics and new investments.

F. Applicant’s Rationale for Fleet Size West Kelowna Taxi stated that according to a taxi to population ratio, as compared to the Vancouver area, the Kelowna area requires 183 taxis to handle the demands of the population. The addition of 23 taxis in the Kelowna, West Kelowna and Peachland areas will bring the total number to 126 taxis. The applicant reports that this will enable it to deliver a high level of service and decrease wait times to 10-15 minutes from 30-45 minutes.

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Board Analysis and Findings We assigned considerable weight to the support letters, letters of intent, agreements and potential service contracts in demonstrating a public need for a new taxi service in the Kelowna area, particularly West Kelowna. These present a common theme of need for a taxi service based in West Kelowna to reduce wait times and provide service with higher occupancy vehicles. The letters came from a cross section of the community that report serious service issues and the difficulty in securing adequate taxi service. The large resorts in the area particularly note inadequate and often unreliable taxi service that impacts their guest relations and business operations. These resorts represent a significant number of potential users of this new service. We also assigned considerable weight to the report by the Cascadia Partners. It was an in-depth analysis of the Kelowna area and validated that the demand for additional taxi service was due to a combination of population growth, changing demographics and new investment and development in the region. We accorded the survey by Csek Creative marginal weight. The Board has a policy on submitting social media information, which, for verification purposes, requires that applicants provide the identity and contact information of the persons who responded. Although this specific information was not provided, the texts of the posts indicated that the respondents were from the Kelowna and West Kelowna area and corroborate other evidence of public need. Other evidence and statistical information submitted by the applicant added factual support to the overall demand for a new taxi service. We concur that cumulatively the applicant has established that a public need exists for this new service. We have also considered the submitters’ evidence about the lack of public need for a new taxi service in the Kelowna area and did not find it compelling. The selected data supplied by the submitter taxi companies was limited in scope and lacked multi-year comparisons to demonstrate changing trip volumes and targeted wait times. Some data did show long wait times for certain areas in West Kelowna. We do not find sufficient evidence to support a fleet size of 23 vehicles. There is little probative information on which to base this conclusion. We find that increasing the total

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taxi supply in the area by almost 25% is excessive and potentially disruptive to the industry. A taxi to population ratio, on its own, is not an indicator of the number of taxis that are needed in an area. There are numerous variables that must be considered in making such a comparison; such as population density, topography, demographics and climate. The applicant’s claim that servicing its contracts will utilize 60% of its fleet and that wait times will be reduced to 10-15 minutes cannot be verified until after operation has commenced. We recognize, however, that there is an economy of scale for such an operation. We, therefore, find that 12 vehicles is a relevant and realistic number to address public need and improve taxi services in the Kelowna area. The applicant premised this application on the need for larger capacity and luxury high end taxis with a focus on the West Kelowna area. Public support emphasized these needs. Of the 12 new vehicles, 2 must be wheelchair accessible taxis and 5 must be conventional taxis that seat a driver and a minimum of 5 and a maximum of 7 passenger. Three must be high-end luxury vehicles, such as Mercedes, Lexus, BMW or Audi makes as outlined in the quotes from the dealership, Lexus of Kelowna. Service to West Kelowna is to be given priority. The 2 wheelchair accessible taxis and 4 additional taxis, for a total of at least 6 vehicles, must be based and dispatched from West Kelowna. We conclude that the applicant has demonstrated that there is a public need for a new taxi service in the West Kelowna and Kelowna area with a total of 12 vehicles. The Board recently changed its policy regarding flip seats. All terms and conditions of licence that have accessible taxi authority will also have flip seat authority and a priority service dispatch requirement. This policy change is reflected in the terms and conditions of licence for West Kelowna Taxi Services Ltd. It is permissive, not mandatory. (b) Is the applicant a fit and proper person to provide that service and is the

applicant capable of providing that service?

The Board looks at fitness in two parts: (i) is the applicant a “fit and proper person” to provide the proposed service; and (ii) is the applicant capable of providing that service? West Kelowna Taxi Services Ltd was incorporated July 8, 2016. The applicant supplied a comprehensive, detailed business plan.

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Organizational Structure The application contained information on the management team, including their skills and work experience, which is comprised of the principal of the applicant company and 5 managers, who are also shareholders. The principal West Kelowna Taxi Services Ltd., is Aravindhan Ravindran, M.D. He will lead the management team and oversee the company’s affairs, facilitate shareholders meetings, develop company policies and supervise the company’s managers. He plans to use his leadership and communication skills to oversee the new taxi service. The principal does not reside in the operating area but submits that an efficient sophisticated software system will be in place to ensure that care and control will be maintained. The applicant states that its management team collectively has the relevant business and management experience to provide the new service.

Bhupinder Singh Aulakh will be responsible for the company’s Human Resource department. The role will include driver and dispatch training, maintaining employee records, company and employee safety and monitoring call volumes, plus incoming dropped calls. He has previously owned and operated his own taxis and is familiar with all areas of vehicle management, maintenance and inspection. He has experience in marketing and operational management. Jagtar Singh Khangura will focus on fleet management. He will be responsible for fleet insurance, license renewal, maintaining driver log sheets, fuel receipts and fleet schedules. His résumé shows employment in the taxi industry since October 2013 as well as experience in web design and organization skills.

Chand Kataria will be the finance manager. This role will include preparation of annual budgets, financial reports, payroll, maintaining accounts receivable and payable as well as driver trip sheets. His résumé indicates various roles in retail, including management. His experience in the transportation industry is from October 2014 -2016 as a taxi driver . Devinder Singh Virk’s responsibility as marketing manager will include website design and maintenance, social media, bookings, advertising and overall marketing and monitoring feedback of the new company. He was a taxi lease operator from September 2011-2016.

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Amritpal Ahuja will oversee quality measurement and improvement manager. His responsibilities will include routine maintenance checks, quality of service in response to passenger and public feedback and oversee driver compliance. The Unlawful Activity and Passenger Transportation form was signed by the applicant’s principal and the five managers. No discrepancies were apparent. An NSC certificate was issued to West Kelowna Taxis Service Ltd on July 15, 2016. The business plan outlined the regulatory requirements to set up and operate the proposed service and outlined marketing strategies and business development plans which will form the platform for the new business. The applicant submitted an outline on policies for driver training and development. Drivers are required to complete an orientation, driver training, and office training. All management, drivers, and dispatchers must complete training programs, a course pertaining to customers with disabilities offered by Worldhost and a wheelchair accessible van course. Company policy states requests for wheelchair accessible vans are to be served as a priority. West Kelowna Taxi plans to provide a modern diverse fleet of taxis that will include passenger vehicles that seat 5 or more passengers, high end taxis, wheelchair accessible vans and pickup trucks. The company will operate 24/7 and provide a professional and highly skilled service that includes a dispatch system using modern technology. The applicant plans to divide the service area into 16 zones to provide effective dispatching for all cabs. All three wheelchair accessible vans will be stationed in the West Kelowna area. The wheelchair accessible taxi trips will be assigned priority 1 in the dispatch system. The company’s dispatch system will use Piccolo software Inc. providing customers with features including web booking, mobile apps and the latest cloud-based GPS technology and tracking . The applicant provided financial information that included startup costs, balance sheet projected cash flow for a 36 month period based on 20 conventional taxis and 3 WATS. Also included are an estimated summary of expenses and net income for all the vehicles

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proposed for the fleet. In the application, all 6 shareholders have committed to a personal investment of the plan. Drivers would receive a 40% commission on each fare as part of the applicant company’s financial model. The management team brings over 17 years of collective experience to the transportation industry, and members appear to have a good understanding, ability and commitment to operate the proposed service in accordance to the Passenger Transportation Act regulations, care and control of the operation of the vehicles and drivers, and terms and conditions of licence. The principal and management team have the skills and resources to operate the proposed service. We find the applicant fit, proper and capable of providing this new taxi service as approved in this decision.

(c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? The Board looks at the “economic conditions” issue from a wide-ranging view. The economic conditions of the “transportation business in British Columbia” are considered ahead of the economic and financial interests of an individual applicant or operator. The Board supports healthy competition. The Board discourages competition that could unduly harm existing service providers

We have concluded that the applicant has demonstrated evidence of public need for a new taxi service in the Kelowna region.

The granting of 12 taxis, inclusive of 2 wheelchair accessible vehicles, represents an overall increase of 12 % in the fleet capacity serving the Kelowna region. This equates to 115 taxis serving the large regional area with over 195,000 residents. The 12 additional taxis will address public need and improve taxi service in the Kelowna area, with service to West Kelowna being given priority. Initially the new service may cause a slight disturbance to the market but with the economic growth, changing demographics and population increase in the region, this should not cause undue long term hardship. The applicant has identified a

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market for larger capacity, luxury and wheelchair accessible vehicles which are not currently being addressed adequately in the market.

We have considered the submitters evidence but do not find it compelling, given the limited operational data and lack of specificity. On balance, the panel finds that the public, in a region of this size, will be well served and will benefit from a service choice. Convenience, shorter wait times and reliability, along with reasonable levels of competition, will better serve the taxi patrons. Also, this new specialized taxi service, with additional wheelchair accessible capacity, will better serve those passengers requiring accessible service. The new service will promote greater efficiency and provide value to the consumer.

Market conditions are supportive of a new entrant who can address some of the service challenges, by increasing coverage in West Kelowna and addressing the lack of high capacity, luxury vehicles and accessible taxis

We find that granting of this application, as set out in this decision; will promote sound economic conditions in the taxi transportation business in Kelowna region.

The rates applied for are the same as the rates for taxis operating in Kelowna and we approve them.

VI. Conclusion For the reasons above, this application is approved in part as set out in this decision. We establish the activation requirements and the terms and conditions of licence that are attached to this decision as Appendix I. We establish the rates that are attached to this decision as Appendix II. These form an integral part of the decision.

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Appendix I West Kelowna Taxi Services Ltd. dba West Cabs Licence Required to Operate Vehicles

The Registrar of Passenger Transportation must issue the applicant a licence before the applicant can operate any vehicles approved in this decision.

Approval of application may expire

1. The applicant must activate at least 50% of the vehicles within 6

months of the date of this decision. 2. If the applicant does not meet the requirements set out in 1

above, this Special Authorization expires. 3. The Passenger Transportation Board may vary the requirements

set out in 1 above, if circumstances warrant it. 4. If an applicant needs more time to activate its vehicles, then the

applicant must make a request to the Board before the end of the 6 month activation period.

(Note: “activate” means that the applicant has submitted the documents required to obtain a Special Authorization Vehicle Identifier to the Registrar of Passenger Transportation.)

Notice to Registrar

The Registrar must not, without direction from the Board, issue the applicant a licence or any Special Authorization Vehicle Identifiers if the applicant has not activated at least 50% of the vehicles within 6 months of the date of this decision. (Note: activated means that the applicant has submitted to the Registrar of Passenger Transportation the documents required to obtain a Special Authorization Vehicle Identifier.)

Special Authorization Passenger Directed Vehicle (PDV)

Terms & Conditions of Licence

Vehicles

Maximum Fleet Size: 12 vehicles of which:

• 2 must be accessible taxis • 5 must accommodate a driver and not less than 5 and not

more than 7 passengers • 3 must be high end luxury vehicle models by Mercedes

Benz, Lexus, BMW or Audi.

Vehicle Capacity: The vehicle accommodates a driver and

• not less than 2 and not more than 7 passengers, or • no less than 5 or more than 7 passengers.

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Specialty Vehicles: The accessible taxis must be operated in accordance with the Motor Vehicle Act Regulations including Division 10 (motor carriers) and Division 44 (mobility aid accessible taxi standards), as amended from time to time, and in accordance with any other applicable equipment regulations and standards.

Service Priority Requirement:

Persons with mobility aids who require an accessible taxi for transportation purposes are priority clients for the dispatch of accessible taxis. The licensee must at all times use a dispatch and reservation system that dispatches accessible taxis on a priority basis to clients who have a need for accessible vehicles

Flip Seat Authorization:

Accessible taxis may be equipped with flips seats that are installed in accordance with Division 10.07(5) of the Motor Vehicle Act Regulations.

Vehicle Location Requirement:

A minimum of 2 wheelchair accessible taxis and at least 4 other taxis must be stationed and dispatched out of West Kelowna and be available to residents in West Kelowna on a priority basis.

Services

Service 1

Originating Area: Transportation of passengers may only originate from points along:

• Hwy 97 from the Okanagan Lake Provincial Park to Bailey Rd. • Westside Rd. from its southern Junction with Hwy 97 (near the

WR Bennett Bridge) to Elliot Rd. • Hwy 97C from Hwy 97 to Brenda Mine Rd. • Hwy 33 from Kelowna to the Junction of Hwy 33 and Big White

Road (excluding Big White Road and Big White resort)

Destination Area: Transportation of passengers may terminate at any point in British Columbia.

Return Trips: The same passengers may only be returned from where their trip terminates in the destination area to any point in the originating area if the return trip is arranged by the time the originating trip terminates.

Reverse Trips: (limited)

Transportation of passengers may only originate in the destination area if the transportation terminates in the originating area and the cost of the trip is billed to an active account held by the licence holder that was established before the trip was arranged.

Other Express

authorizations:

(i) Vehicles must be equipped with a meter that calculates fares on a time and distance basis.

(ii) Vehicles may be equipped with a top light.

(iii) The operator of the vehicle may, from within the originating area only, pick up passengers who hail or flag the motor vehicle from the street.

Taxi Cameras: Taxi camera equipment may only be installed and operated in vehicles when the licensee is in compliance with applicable taxi camera rules, standards and orders of the Passenger Transportation

Taxi Decision


Board.

Transfer of a licence: This special authorization may not be assigned or transferred except with the approval of the Board pursuant to section 30 of the Passenger Transportation Act.

Taxi Decision


Appendix II West Kelowna Taxi Services Ltd. dba West Cabs

Metered Rates ($)

Initial “flag” (for first X metres) 3.50

Additional distance (per kilometre) 2.25

41.85Waiting time (per hour) 41.87 These rates include GST

(taxi - new) · peachland taxi and current taxi are new entrants in the market, receiving board...

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