Licence Application Decision

Transcription

1 Licence Application Decision (Taxi - New) Application # Between and Applicant 83 individual drivers (see (see Appendix A for the names of Appendix A for the each applicant) individual application numbers) Trade Name (s) E-Weekend Cab Address Current Licence Application Summary 6446 Fraser Street, Vancouver BC V5W 3A4 None 83 members of the Pacific Coast Drivers Association have made individual applications, under the trade name of E-Weekend Cabs to operate in Vancouver on weekend evenings and special days. Special Authorization: Passenger Directed Vehicles New taxi service with 1 vehicle to pick up passengers in Vancouver on Friday and Saturday evenings from 3 p.m. to 5 a.m., black and red days at the cruise ship terminals, and other special occasion days. Rates Board Rule respecting Lower Mainland Taxicab Rates will apply Related Applications: (for cross reference only) Pacific Coast Co-Op Taxi 3 p.m. - 6 a.m. Friday, Saturday and other special days - Application is for 99 vehicles. ANSARI, Abu Taher TAJ Weekend Taxi 3 p.m. 5 a.m. Friday and Saturday, and Sunday when the following Monday is a statutory holiday. Application is for 1 vehicle. AULAKH, Fatehbir S - Blue Tech Weekend Cab - 3 p.m.- 5 a.m. Friday, Saturday and special days as approved by the Board. Application is for 1 vehicle. CHAUDHRY, Irfan Ahmed - Taxi Driver - 3 p.m.- 5 a.m. Friday, Page 1 Passenger Transportation Board Decision

2 Saturday and special days as approved by the Board. Application is for 1 vehicle. CHERE, Amit - Downtown Taxi - 3 p.m. - 6 a.m. Friday, Saturday and specified holidays. Application is for 1 vehicle. Publication Date August 29, 2012 and October 3, 2012 Submissions Received CHAUDHRY Irfan GHAFOOR, Abdul KAHN, M. Akram KHAN, M. Ghyas KHAN, Khazar Hayat KHAN, Quamer M. CHAUDHRY, Irfan Black Top Cabs Ltd. MacLure s Cabs (1984) Ltd. Vancouver Taxi Ltd. Yellow Cab Company Ltd. Vancouver Taxi Ltd. BC Taxi Association City of Vancouver Aldergrove-Langley Taxi Ltd. Queen City Taxi Ltd. Sunshine Cabs Ltd. North Shore Taxi (1966) Ltd. Burnaby Select Metrotown Taxi Ltd. Delta Sunshine Taxi (1972) Ltd. Kimber Cabs Ltd. Guildford Cab (1993) Ltd. Bonny s Taxi Ltd. Surdell Kennedy Taxi Ltd. Port Coquitlam Taxi Ltd. Bel-Air Taxi (1982) Ltd. Royal City Taxi Ltd. Tsawwassen Taxi Ltd. White Rock South Surrey Taxi Ltd. Coquitlam Taxi (1977) Ltd. Newton Whalley Hi Way Taxi Ltd. Board Decision The special authorization is refused. Decision Date March 21, 2013 Panel Chair Don Zurowski Panel Member (s) Brenda Brown Page 2 Taxi Decision Passenger Transportation Board

3 I. Board Considerations The Board may approve a licence 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. All three requirements must be met before the Board will approve an application. (Reference: section 28(1) of the Passenger Transportation Act). Applicants must decide how much information to provide to the Board. Applicants should consider the type, location and scope of the service they wish to provide. The Board has written various Guides to explain Board requirements. II. Background Eighty three (83) members of the Pacific Coast Drivers Association (PCDA) are applying to operate on Friday and Saturday evenings from 3 p.m. to 5 a.m., black and red days at the cruise ship terminals, and other special occasion days. The Board received applications from July 2012 through September The applications were published in 2 sets. Forty-two (42) applications were published in the Board s Weekly Bulletin on August 29, 2012 and a further 41 applications were published on October 3, The PCDA is a non-profit organization that recognizes the concerns and addresses the issues pertaining to taxi drivers in general. The association submitted common supporting materials, such as public need indicators, on behalf of the individual drivers. The individual drivers submitted disclosure forms and financial information. The PCDA indicates that individual drivers will be authorized to use the trade name E- Weekend Cab. If approved, individual drivers will be responsible for their own business expenses; however, for administrative purposes they have been structured under the PCDA. Page 3 Taxi Decision Passenger Transportation Board

4 The PCDA will contract with a dispatch company, an accounting firm and an auto shop for maintenance. The common executive summary included marketing strategy and revenue projections. III. Related Applications and Procedure As noted above, 83 individuals submitted applications under the trade name E-Weekend Cab. Each applicant authorized the PCDA to act on its behalf. The PCDA supplied common support materials on behalf of the individual drivers. Given these circumstances, the Board is combining and conducting these applications at the same time. The Board s authority for this is section 14 of the Passenger Transportation Act. The Board will issue one decision common to these 83 applications. The Board has a number of related applications before it. These applications are from drivers or drivers organizations who want to provide taxi service in Vancouver in the evenings on weekends and other high demand days. We will refer to these as applications for peak period taxi service in Vancouver. Pursuant to section 14 of the Act, the Board is considering these applications one immediately after the other. Therefore, the Board will be issuing 6 decisions. Details of the applications are as set out in Chart 1 below. Chart 1 Application Applicant Description Published in Number Weekly Bulletin Pacific Coast Number of Applications: 1 29-Aug-12 Co-Op Taxi - Vehicles: 99 Days & Times of Operation: 3 p.m-6 a.m. Closed for submissions 13-Sept CHERE, Amit - Downtown Taxi Friday/Saturday and Saturday/Sunday and other special days as approved by the Board Number of Applications: 1 Vehicles: 1 29-Aug Sept-12 Days & Times of Operation: 3 p.m. - 6 a.m. Friday/Saturday and Saturday/Sunday and any Sunday/Monday where the Monday is a statutory holiday; Halloween night, New Year s Eve, St. Patrick s Day and Easter Sunday. Page 4 Taxi Decision Passenger Transportation Board

5 Between and Pacific Coast Drivers Association - E-Weekend Cab Number of Applications: 83 Vehicles: 1 per applicant Days & Times of Operation: 3 p.m-5 a.m. 29-Aug-12 (1st set) 03-Oct-12 (2nd set) 18-Oct CHAUDHRY, Irfan Ahmed - IAN Weekend Taxi Friday/Saturday and Saturday/Sunday black and red days at the cruise ship terminals and other special occasion days. Number of Applications: 1 Vehicles: 1 Days & Times of Operation: 3 p.m-5 a.m. 17-Oct-12 1-Nov AULAKH, Fatehbir S - Blue Tech Weekend Cab Friday/Saturday and Saturday/Sunday and special days as approved by the Board. Number of Applications: 1 Vehicles: 1 Days & Times of Operation: 3 p.m-5 a.m. 24-Oct-12 8-Nov ANSARI, Abu Taher - TAJ Weekend Cab Friday/Saturday and Saturday/Sunday and other special days as approved by the Board. Number of Applications: 1 Vehicles: 1 Days & Times of Operation: 14-Nov Nov-12 3 p.m-5 a.m. Friday/Saturday and Saturday/Sunday and any Sunday/Monday where the Monday is a statutory holiday. IV. Submissions on Application from Pacific Coast Drivers Association and Applicant s Reply Thirty-one entities made submissions on the applications. The Board gives more weight to submissions that back up general claims with facts or details. All submissions were sent to a designated representative of the applicants who replied. We have considered these submissions and the applicants reply. The following are submissions and the applicant s responses. CHAUDHRY Irfan; GHAFOOR, Abdul; KAHN, M. Akram; KHAN, M. Ghyas; KHAN, Khazar Hayat; KHAN, Quamer M. These individuals provided a common submission. They claim that they have deliberately been kept out of the Pacific Coast Drivers Association. It was set up to protect and provide Page 5 Taxi Decision Passenger Transportation Board

6 an umbrella for all the cab drivers. The above drivers wish to have their individual applications incorporated under the Pacific Coast Drivers Association umbrella. CHAUDHRY, Irfan In a separate submission, Mr. Chaudhry claims to have been deliberately kept out of the PCDA membership despite constantly trying to contact the organization prior to its application. PCDA response The cutoff date for membership in the PCDA was June 30 th, The above individuals never applied to become members before this date. Black Top Cabs Ltd.; MacLure s Cabs (1984) Ltd.; Vancouver Taxi Ltd.; Yellow Cab Company Ltd. (Vancouver taxi companies) The 4 Vancouver taxi companies submitted a common submission on September 11, 2012 through their counsel, Tobin Robbins of Heenan Blaikie LLP. This submission applied to the following applications: CHERE, Amit for 1 vehicle, the Pacific Coast Drivers Association applications for a total of 83 vehicles and the Pacific Coast Co-Op Taxi application for 99 vehicles. The submissions outlined the history and timing of the 4 Vancouver taxi companies Temporary Operating Permits; provided an extensive background of the Vancouver taxi and suburban taxi applications; as well as detailed findings from Dr. Chow s report. Professor Chow has identified an additional need. The 4 Vancouver companies should be able to make their plan permanent. The submitters question whether the applicant has the financial and managerial experience. They conclude that sound economic conditions would not be met by fostering part-time taxi businesses in Vancouver. PCDA response The PCDA noted that it provided about 200 letters of support with its application. Most of these were obtained in the summer of 2012 when the 65 Vancouver taxi TOPs were in Page 6 Taxi Decision Passenger Transportation Board

7 operation. Although an increase of 34 more taxis has been approved (for the Vancouver taxi companies), the volume of letters endorses adding more weekend taxis. Considering the recommendation of Prof. Chow s study it is safe to say that 99 is not an optimal number of additional taxis. Management of the company (association) consists of 5 elected directors; all have prior experience working in the taxi industry. Each individual applicant has relevant taxi driving experience and hold valid documentation/permits to operate in the City of Vancouver. An owner/operator model will have more responsibility and accountability and be more cost effective. This business model does not carry dead weight. The share prices attached to the Vancouver taxi licences result in bad economics and drivers have difficulty making ends meet. Our weekend only business model will solve the issue of weekend taxi shortage without negatively affecting 24/7 taxi companies. Even following the October 2, 2012 decision, the PCDA feels there is still a further need for additional weekend taxis. Aldergrove-Langley Taxi Ltd.; Queen City Taxi Ltd.; Burnaby Select Metrotown Taxi Ltd.; Delta Sunshine Taxi (1972) Ltd.; Kimber Cabs Ltd.; Guildford Cab (1993) Ltd.; Bonny s Taxi Ltd.; Surdell Kennedy Taxi Ltd.; Port Coquitlam Taxi Ltd.; Bel-Air Taxi (1982) Ltd.; Royal City Taxi Ltd.; Tsawwassen Taxi Ltd.; White Rock South Surrey Taxi Ltd.; Coquitlam Taxi (1977) Ltd.; Newton Whalley Hi Way Taxi Ltd.; Sunshine Cabs Ltd.; North Shore Taxi (suburban taxi companies) The above 17 companies submitted a common submission through their counsel, William McLachlan of McLachlan Brown Anderson, dated September 13, At the time of these submissions, the Vancouver taxi companies were operating 65 peak period taxis under Temporary Operating permits in the City of Vancouver. The applications of the 17 suburban taxi companies and 4 Vancouver taxi companies need to be decided before multiple other applications are considered. The approach must be to decide long pending applications. If new applications for similar authority can continually be received and a decision continually deferred, an impossible administrative situation develops. If applications for similar authority are made within some reasonable narrow Page 7 Taxi Decision Passenger Transportation Board

8 timeline, there is precedent for applications being considered together. This is not the situation. If there is a decision to grant permanent part time authority, there will be no further public need for additional applicants. If a capacity increase is too large, the revenue for existing taxi operators will become uneconomical and thus not contribute to sound economic conditions. The directors/members have no experience being the operator of a substantial business. A follow up submission, further to the September 13 th date was sent on October 18 th. This follows the omnibus decision of October 2, The Board has made a finding of fact that approving 137 taxis with permanent/part time authority promotes sound economic conditions. PCDA response The applicant offered a similar response as to the 4 Vancouver taxi companies submissions. The approved suburban taxis will operate between 10 p.m. and 5 a.m. on Friday and Saturday nights. These limited hours are very different from PCDA s business model of 3 p.m. and 5 a.m. and do not include any special days. This is a part-night service. These limited service hours will not address the early evening hours or be able to serve any early evening special events. There will be an element of self-enforcement by the suburban taxi companies for the supervisor to keep out unauthorized taxis. This will result in less unauthorized pickups and more demand in downtown. Providing service will be voluntary. When it is busy and more lucrative in their own communities they are less likely to provide service in downtown Vancouver. A supplemental response was sent on October 26 th, It noted that the PCDA proposes a full time weekend taxi service. There will be an unmet public demand between 5 p.m. and 10 p.m. for busy times and special events. The 38 weekend taxis will not be in service on special days and holidays. PCDA will have a dispatch system as compared to street side pickup only. Page 8 Taxi Decision Passenger Transportation Board

9 Prior to the approval of 38 suburban taxis they were already illegally providing service in even greater numbers. Seventeen (17) suburban companies applied for 124 taxis. This shows that the submitters application had a further unmet public need for 86 more taxis. PCDA members 83 weekend taxis will fill this unmet demand. More than 200 supporting letters suggest there is room to add more taxis. BC Taxi Association It submits that the applicants will not be able to establish an unmet public need once the 137 cabs start serving on the specified times. If there is a greater need, the suburban taxi companies still have substantial excess capacity. The applicants may have taxi driving experience but no experience to operate such a taxi company. PCDA response The applicant provided the same response that it did with the Vancouver taxi companies and the suburban taxi companies. City of Vancouver A letter was sent to the Passenger Transportation Board from the Office of the City Manager, Penny Ballem. It states: In order to maintain a viable taxi industry and improve service, an incremental approach to licensing that involves monitoring of supply and demand metrics prior to adding new licences is important. At this time there is insufficient data to justify an increase of taxi licences beyond our recently approved 99 part-time licences for Vancouver companies and the additional 38 part-time licences for the suburban companies. The City does not support any of the new applications for peak period weekend taxis. PCDA response This is a late submission and contains only general information without relevant facts. There is undue favoritism by the City toward the 4 Vancouver taxi companies. Page 9 Taxi Decision Passenger Transportation Board

10 V. Reasons for the Board s Decision In this application, the Board is considering public need and sound economic conditions in the transportation industry before applicant fitness. (a) Is there a public need for the service that the applicant proposes to provide under special authorization? Applicants should show the Board that there is a public need for a new taxi service. Applicants may show public need with the following types of information: letters from prospective passengers, signed contracts, population data community plans other relevant material The Board often finds comments written by potential passengers more useful than precompleted surveys or petitions. The Board also reviews business plans and financial statements. The common executive summary included marketing strategy and revenue projections. The applicant submitted various materials in support of public need, including: Key findings from the Chow report as outlined in the Vancouver Taxi Association s request to the City of Vancouver for 99 weekend and special events taxis. Various media articles, editorial, and research papers including: o An editorial posted on the Sightline website on August 9, 2011 that states we have fewer cabs in Vancouver and we pay more. o A report by David Seymour (2009) on the economic benefits of deregulation. Restricted entry leads to a shortage or a surplus of taxi services. In the case of a shortage, it leads to higher prices for licences. The PCDA states that what is needed is a broadening of the BC governmental policies to award individual drivers special authorization to operate a taxi. Page 10 Taxi Decision Passenger Transportation Board

11 o A research paper by the PCDA entitled The Case for BC Taxi Industry Policy Alternative as per The Experts & BC legislation. This paper discussed the state of the taxi industry and referred to a recommendation in the Taxi Study Panel chaired by Stan Lanyon QC in 1999 that suggested rewarding individual Drivers special authorizations to operate taxis. This recommendation was not implemented. o The paper suggests that restricted regulatory entry and policy grants the 4 Vancouver taxi companies a quasi-monopoly. They are allowed to extract monopoly rents equal to or greater that other investment opportunities. Current market price for each share ranges from $500,000 to $850,000. Precedents have been set in Victoria by granting 2 individual taxi permits. A City of Vancouver Administrative Report dated March 16, 2012 that supports the 4 Vancouver taxi companies to operate on weekend evenings and other peak demand days was included. Support letters/endorsement signatures from approximately 200 taxi customers. The few that are dated seem to have been provided in May and June, 2012 before the application was submitted to the Branch in early July, The support material came in a variety of forms consisting of either full letters, brief statements, completed questionnaires or a signature only. All were signed with contact information. The support material all stressed a shortage of late night weekend taxi service and long wait times. These supporters were entertainment district patrons, venue workers and business affiliates. The applicant emphasizes that, although 65 TOP taxis were operating when this support material was collected, there still was a demonstrated shortage on weekend evenings and particularly late hours. The applicant requested approval to submit late evidence of public need in the form of a PCDA produced video. The Board agreed and viewed this electronic material evidence. It consisted mainly of on the street interviews with potential taxi patrons, who stressed the difficulty in obtaining taxis and the long wait times on weekends in downtown Vancouver. Dr. Chow s study project was mentioned in the video suggesting up to an additional 150 weekend taxis be authorized. Page 11 Taxi Decision Passenger Transportation Board

12 The applicant concludes that there is a need to add more than 15% to the current taxi cab fleet. The Board has recognized that more than 65 additional taxis are required to serve the Downtown Vancouver Entertainment District. In the Board s Licence Application Decisions on Peak Period Taxi Service in the City of Vancouver, October 2, 2012 (the omnibus decision ) the Board found that 137 vehicles would address peak period taxi demand on weekends in the Downtown Vancouver Entertainment District. Public need for peak period taxis was addressed in the omnibus decision, which includes Board decisions on 21 applications relating to peak period taxi service in the City of Vancouver. These applications predated the current PCDA applications and were from 4 Vancouver taxi companies and 17 other taxi companies ( suburban taxi companies ) in the Greater Vancouver Regional District. Sixteen of these suburban taxi applications were published in July Since April 2011, the 4 Vancouver taxi companies had been operating 65 additional vehicles under Temporary Operating Permits (TOPs) and in February 2012 they applied collectively for 99 additional vehicles. The Board conducted proceedings for these 21 applications at the same time. These applications were well underway at the time that the applications from members of Pacific Coast Drivers Association were published. The approvals for the 137 vehicles were as follows: 38 vehicles from 7 existing suburban taxi fleets may be allocated to the Downtown Vancouver Entertainment District on Friday/Saturday and Saturday/Sunday from 10 p.m. to 5 a.m. 99 additional identifiers were approved for the 4 Vancouver taxi companies. These taxis may operate in the City of Vancouver on Friday/Saturday and Saturday/Sunday from 3 p.m. to 6 a.m. The Vancouver taxi companies may also use their 99 additional vehicles on heavy traffic days at cruise ship terminals, Celebration of Light and other special occasion or event days as approved by the Board. In making its decision, the Board gave consideration to the Peak Demand and Supply of Taxis in Vancouver s Downtown Entertainment District: Final Report, Garland Chow, February 27, 2012 (the Chow Report ), commissioned by the 4 Vancouver taxi. The Chow Report provided empirical evidence of demand for taxis on weekends in Downtown Vancouver. Page 12 Taxi Decision Passenger Transportation Board

13 Dr. Chow recommended that between 100 and 154 more taxis could be added to service the downtown core on weekend evenings. When the omnibus decisions are fully implemented, there will 137 peak period taxis available to serve the Downtown Vancouver Entertainment District. This is 72 more taxis than are operating now under TOPS. As a result of the Board s omnibus decisions, the potential supply of peak period weekend taxis has increased by over 23%. Furthermore, 99 peak period taxis will be available to provide service on other high demand days. The Board has reviewed the material carefully but must conclude that before any further increase in weekend and special event taxi capacity can be considered, the user market and taxi industry must have time to absorb and assess the already approved addition of 137 taxis. For the reasons outlined above, the Board finds that, at this time, there is no public need for the peak period taxi service the applicant is proposing. (b) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? The Board looks at how additional taxis could affect taxi service in an area. An application will not be refused just because other taxi companies have a licence. The overall health and quality of taxi services is more important than the interests of one taxi company. The submitters expressed concern about adding more taxi licences until the 137 weekend taxis are operational and their impact assessed. The Board finds these concerns relevant to any application for additional peak period taxis. To maintain a viable taxi industry and improve service, supply and demand requires monitoring. It would not benefit drivers or companies if there were an over-supply of taxis. At this time, approving the application of Pacific Coast Drivers Association to operate 83 peak period taxis in the City of Vancouver would not promote sound economic conditions in the transportation business. Page 13 Taxi Decision Passenger Transportation Board

14 (c) 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? The Board reviews the conduct of an applicant and the structure of the existing or proposed operations. Does the applicant seem to understand passenger transportation laws and policies? Is the business set up to follow these laws? Is there something in the applicant s background that shows it disregards the law? Applicants must show that they have the resources and skills to manage the service that want to operate. The Board gets much of this information from business plans and financial statements. As the requirements for public need and sound economic conditions have not been met, the Board has not made any determination on the applicant s fitness. VI. Conclusion This application is refused. Page 14 Taxi Decision Passenger Transportation Board

15 Appendix A PACIFIC COAST DRIVERS ASSOCIATION INDIVIDUAL DRIVERS APPLYING FOR WEEKEND CAB Application # Last Name First Name KHAN MUHAMMAD AHMED RAZA KHAN MUHAMMAD MUSHARRAF-ALI CHEEMA ALLAUDDIN MAHMUD RIAZ SOMAL GURJINDER KHOKHAR SABIR SHAHZAD QURESHI UMAR SAGHIR SHAH SYED FARHAN ALI AFZAL MUHAMMAD WASIM ALI SHABBAR SARWAR MUHAMMAD ALAM JAHIRUL RAHMAN SHAHEDUR MIAH MD SIRAJULHOQ KASHEM MD ABUL BATH NAVDEEP SINGH GHAFFAR ABDUL FARDAUS JIAUL HAQUE ALI ASGHAR BHATTI ABDUL REHMAN AZAM HOSSAIN MOHAMMED ANOWAR MANDLA HARJINDER SINGH AMEER MUHAMMAD AHMED YAWAR MAHMOOD UDDIN MD SALAH SYED NASIAR ABBAS KHAWAJA JAMAL AMIN ISLAM NAJAM ABID ANWAR UL HAQ BADWAL SURINDER SINGH RANA REJA AHMED HUSSAIN MOHAMMED KHURRAM MUHAMMAD AHMAD MUHAMMAD TANVEER JAPRA HARJIT SINGH GULMA HENOK RAO RASHID DHALIWAL SUKHDEV SINGH NILAM NISREEN AHAMED MOHAMED MAHMOOD TARIQ AMIN MOHAMMAD RASHEL TAVAKOLIPOUR FARHAD MENGESHA KASSA Page 15 Passenger Transportation Board Decision

16 Application # Last Name First Name MAJUERAE MANASE SINGH NIRLEP ALI YOUNIS MAHMOOD SYED AZHAR CHAKRABARTY INDRA AHMED SHAHZAD HOSSAIN MD SHAWKET BAKER MD TAKAR ABDILLAHI MOHAMUD POONI JAGJIT SINGH MAHFOUZ GHAZI AHMAD BIRRING BHUPINDER SINGH SHAIKH FIROZ ABDUL NASRUL FASIK SIDDIQUI MOHAMMAD ASHRAF S HUSSAIN BASHARAT MALIK MAJID DHALIWAL GURMUKH SINGH QURESHI MAQSOOD HASSAN JUNAID ZACKY MOHAMED ANSARI TAREQ HASSAN HASSAN ABDI HASHI YOUSUF ALMI AYAZ MOHAMMAD YAHYA AMIN ISMAIL M ADIL JAMAL MUHAMMAD SHEIKH KASHIF MAHMOOD KHINDA MALWINDER SINGH ASHRAF MUHAMMAD WALIA MANJIT SINGH ALI BASHARAT BHANGU ADNAN AKBAR MOHAMED IBRAHIM RIYAS MOHAMED DHALIWAL HARPREET SINGH AHMED AAMER MOHAMED YUSOOF MOHAMED NISTHAR MAHER EL MAATI KHAN ALAMGIR RAHMAN MUHAMMAD ATTIQUR SIKANDER RAUF Page 16 Taxi Decision Passenger Transportation Board