Item - 2024.EX19.4

The City Manager, Executive Director, Municipal Licensing and Standards and the General Manager, Transportation Services recommends that:  

Implement a cap on Private Transportation Company drivers with an exemption for zero emission and wheelchair accessible vehicles

1. City Council amend Chapter 546 to cap the number of Private Transportation Company driver licences such that the number of drivers to whom a licence may be issued by MLS shall be no greater than 80,429 PTC drivers, subject to the following:

a. The cap is to be reached by attrition as Private Transportation Company driver licences are cancelled or terminated; and

b. MLS may issue Private Transportation Company Driver licences in excess of the cap provided that, as a condition of holding their licence, the Private Transportation Company driver registers and operates only an Accessible or Zero-Emission Vehicle throughout the term of their Private Transportation Company driver licence.

2. City Council direct the Executive Director, Municipal Licensing and Standards, and the General Manager, Transportation Services, to monitor and publish key indicators of the vehicle-for-hire industry, including but not limited to sector efficiency; user fares; wait times; daily active vehicles; trips per day; and the number of Zero Emission Vehicles licensed as Private Transportation Companies, taxicabs and limousines, as well as monitor the impact of any new major transit projects on user mobility.

Create a centralized dispatch service for wheelchair accessible vehicles-for-hire

3. City Council direct the Executive Director, Municipal Licensing and Standards, to develop and implement a centralized dispatch service for on-demand wheelchair accessible vehicle-for-hire service.

4. City Council authorize the Executive Director, Municipal Licensing and Standards, to fund the centralized dispatch service using licensing fee revenues held in the Vehicle-for-Hire Reserve Fund.

Amend the wait time standard for accessible service requested through a Private Transportation Company platform

5. City Council amend Chapter 546-119(B)(1) to require Private Transportation Companies to ensure that wheelchair accessible vehicles are available when requested by a passenger through the Private Transportation Company's platform within a wait time of 15 minutes.

6. City Council delete Chapter 546-119(C).

7. City Council amend Chapter 546-116(G) to require Private Transportation Companies to also report on the wait times for each trip by an accessible taxicab that provides accessible transportation service through a Private Transportation Company.

8. City Council direct the by-law amendments in Parts 5 to 7 above come into effect on January 1, 2026.

Extend the model year age limit for wheelchair accessible vehicles

9. City Council amend Chapter 546-51 to increase the maximum age limit of wheelchair accessible vehicles used as a taxicab or Private Transportation Company vehicle to ten model years beyond December 31, 2025.

Clarify the maximum number of Standard Taxicab Owner and Toronto Taxicab Licences

10. City Council amend Chapter 546 to specify that the total maximum number of Standard Taxicab Owner licences and Toronto Taxicab Licences that the Executive Director, Municipal Licensing and Standards, can issue is 5,472, which is based on previous City Council decisions to issue taxicab owner licences and Toronto Taxicab Owner Licences.

Issue taxicab owner licences and transition from the Drivers' list to a first-come first-serve system  

11. City Council amend Chapter 546 as follows:

a. Delete Chapter 546-34 (B)-(G), 546-35 and 546-36

b. Amend 546-34(A) to remove the requirement that the notice must include the date of next available accessible vehicle training course.

c. Amend Chapter 546 to require that anyone who is sent a notice pursuant to 546-34(A) shall attend and complete an accessible vehicle training course and provide proof of such to Municipal Licensing and Standards, along with an application for a Toronto Taxicab Licence, within 90 days of the date of the notice failing which they will be removed from the Drivers’ list. This amendment shall subsequently be revoked on December 17, 2025.

d. Amend Chapter 546 to provide that a Toronto Taxicab Licence holder must register a vehicle with Municipal Licensing and Standards that qualifies as an accessible vehicle within 90 days of being issued a Toronto Taxicab Licence.

12. City Council amend Chapter 546 as follows, effective December 17, 2025:

a. Delete Chapter 546-34(A), 546-39 and 546-40 thereby eliminating the Drivers' list.

b. Toronto Taxicab Licences will be issued with priority given to the order that a complete application is received by Municipal Licensing and Standards.

c. Individuals applying to receive or renew a Toronto Taxicab Licence shall, if requested by Municipal Licensing and Standards, permit Municipal Licensing and Standards to take their photograph.

d. On the third Monday of every March, commencing March 2026, the Executive Director shall post the total number of Toronto Taxicab Licences available for issuance on the City of Toronto’s website.

e. MLS shall start accepting Toronto Taxicab Licence applications no earlier than 14 days from the date the total number of Toronto Taxicab Licences available for issuance are posted on the City of Toronto’s website.

f. Municipal Licensing and Standards will stop accepting Toronto Taxicab Licence applications no earlier than 180 days after MLS started accepting Toronto Taxicab Licence applications.

Permit Private Transportation Companies to dispatch accessible taxicabs

13. City Council amend Chapter 546 to permit a Private Transportation Company to accept, facilitate or broker requests for or advertise accessible transportation service in an accessible taxicab.

14. City Council amend Chapter 546 to exempt Private Transportation Companies from the requirements of 546-112(B) with respect to VFH drivers who provide accessible transportation service through a Private Transportation Company in an accessible taxicab.

15. City Council amend Chapter 546 to exempt Vehicle-for-Hire licence holders who provide accessible transportation service in an accessible taxicab through a Private Transportation Company from the requirements of 546-19(A) and (F), 546-20(A), 546-23 (B)-(D), 546-25(A)-(B) and 546-112(A).

16. City Council amend Chapter 546 to require that a Private Transportation Company shall not permit any individual to provide accessible transportation service in an accessible taxicab through their Private Transportation Company unless the individual holds a current Vehicle-for-Hire driver’s licence issued by MLS.

17. City Council direct the by-law amendments in Parts 13 to 16 above come into effect on January 1, 2025.

Require taxicab owners to operate with digital trip meters

18. City Council amend the definition of Trip Meter in Chapter 546-1 to add that it shall also digitally record and transmit business records required to be maintained under Chapter 546 in a format prescribed or approved by the Executive Director, Municipal Licensing and Standards, through a vendor approved by the Executive Director, Municipal Licensing and Standards.

19. City Council add a provision to Chapter 546 allowing the Executive Director, Municipal Licensing and Standards to:

a. Establish the criteria for the approval of a Trip Meter vendor;

b. Approve Trip Meter vendors in accordance with the established criteria; and

c. Publish a list of approved Trip Meter vendors.

20. City Council add a provision to Chapter 546 requiring that each applicant seeking approval as a Trip Meter vendor shall provide, at minimum, to the Executive Director, Municipal Licensing and Standards: 

a. The applicant’s full name;

b. Mailing address;

c. Contact information, including a phone number and e-mail address;

d. Information confirming its ability to comply with the Trip Meter vendor

requirements, in accordance with the criteria established by the Executive Director; and

e. Any other information required by the Executive Director, Municipal Licensing and Standards.

21. City Council add a provision to Chapter 546 that Municipal Licensing and Standards has the authority to audit a Trip Meter vendor and request information related to the audit, as required.

22. City Council add a provision that the Executive Director, Municipal Licensing and Standards, has the authority to revoke the approval of a Trip Meter vendor if:

a. Municipal Licensing and Standards has reasonable grounds to believe that the Trip Meter vendor no longer meets the requirements for inclusion on the approved list, in accordance with the criteria established by the Executive Director, Municipal Licensing and Standards;

b. Municipal Licensing and Standards has reasonable grounds to believe that the vendor or its officers, directors, or employees have not acted in accordance with the intent of the City of Toronto Municipal Code Chapter 546, Licensing of Vehicles-for-Hire, or if incomplete or inaccurate information has been provided; or

c. Municipal Licensing and Standards has reasonable grounds to believe that the conduct of the vendor or its officers, directors, or employees has resulted, or will result, in a breach of the City of Toronto Municipal Code Chapter 546, Licensing of Vehicles-for-Hire, or any other law.

23. City Council direct the by-law amendments in Parts 18 to 22 above come into effect on July 1, 2026.

Update business record requirements for taxicabs and Private Transportation Companies

24. City Council amend the requirements for business records that taxicab brokers and owners must maintain by amending Chapter 546-26 to include the following requirements:

a. Amend the meaning of business records in Chapter 546-26(A) to add the following:

i. Total distance driven for each trip.

ii. Total fare collected for each trip.

iii. Vehicle-for-Hire licence number of the driver that completed each trip.

b. Require taxicab brokers and taxicab owners that do not have an arrangement with a taxicab broker to maintain the business records required under Chapter 546-26 in relation to all trips that commence or terminate in Toronto.

25. City Council amend the requirements for collision records that taxicab brokers and owners must maintain by amending Chapter 546-26.1. to include the following requirements:

a. Require taxicab owners that do not have an arrangement with a taxicab broker to maintain collision records required under Chapter 546-26.1.

b. Require taxicab brokers and owners that do not have an arrangement with a taxicab broker to maintain collision records that also include the incident identification number issued by the Toronto Police Service and Collision Reporting Centre associated with each recorded collision, if available.

26. City Council amend the requirements for information that taxicab brokers and owners must keep by amending Chapter 546-27 to require taxicab owners that do not have an arrangement with a taxicab broker to keep a record of information showing a continuous account of the total distance driven for each day the taxicab was available for service, the times at which the taxicab went on the road each day, any time or times when it was off duty and the time at which it was last available for service to the public on that day.

27. City Council amend Chapter 546 to require taxicab owners to comply with the requirements under Chapter 546-10.1(A)-(C) regarding audit and investigative authority and record submission requirements.

28. City Council amend Chapter 546-116(F) to require every Private Transportation Company to include the incident identification number issued by the Toronto Police Service and Collision Reporting Centre associated with each recorded collision, if available.

29. City Council direct the by-law amendments in Parts 24 to 28 above come into effect on July 1, 2026.

Permit Private Transportation Companies to participate in the Zero Emissions Grant Program

30. City Council approve zero emission grant remittance plans from HOVR, Lyft and Uber, outlined in Attachments 1, 2 and 3 to this report, to enable them to begin participating in the Zero Emissions Grant Program on January 1, 2025.

Add a definition for all-weather tires

31. City Council add the following definition for "all-weather tire" to Chapter 546: a tire that is marked with the pictograph of a peaked mountain with a snowflake.

32. City Council authorize the City Solicitor to introduce the necessary bills to give effect to City Council's decision and City Council authorize the City Solicitor to make any necessary clarifications, refinements, minor modifications, technical amendments, or by-law amendments as may be identified by the City Solicitor, and the Executive Director, Municipal Licensing Standards.

Toronto Municipal Code Chapter 546, Licensing of Vehicles-for-Hire, regulates the provision of vehicle-for-hire (VFH) services, such as taxicabs, limousines and private transportation companies (PTCs), in Toronto. Municipal Licensing and Standards (MLS) administers and enforces Chapter 546, which includes the issuance of licences to the various vehicle-for-hire business classes, including the drivers of taxicabs, limousines, and PTC vehicles. MLS also issues licences to entities that facilitate requests for vehicle-for-hire services, such as taxi brokers and PTCs.

This report responds to several Council directives requesting staff to review specific issues related to VFH, including options to limit the number of drivers, industry impacts on public policy goals related to transportation, emissions and equity, inactive taxicab owner licences, PTC participation in the Zero Emissions Grant Program, and taxicab tariffs and charges. This report also addresses on-demand wheelchair accessible service and taxicab data requirements, as initiated by staff based on the current state of the industry and stakeholder feedback.

Staff conducted a review on these issues to update and enhance the City's regulatory framework for the VFH industry by focusing on improving accessibility and addressing potential impacts of the VFH industry on Toronto's transportation and emissions reduction goals. To achieve this, and address stakeholder feedback and previous Council directives, this report outlines a suite of initiatives and recommends several bylaw amendments.

Recommendations include establishing a cap on the number of licenced PTC drivers as the number licensed on December 1, 2024 (80,429), with an exemption for zero emission and wheelchair accessible vehicles, as a proactive measure to mitigate the risk of increasing traffic congestion and emissions, and impact on public transit use, while balancing considerations for driver equity and user mobility.

This report also includes several initiatives to improve accessible service, including: issuing new wheelchair-accessible Toronto Taxicab Licences based on the current amount of vacant taxicab owner licences (628 total); updating the Accessibility Fund Program (AFP); creating a Centralized Dispatch Service (CDS) for on-demand wheelchair accessible service; establishing a 15-minute maximum wait time standard for PTC wheelchair accessible trips; permitting PTCs to dispatch wheelchair accessible taxicabs; and permanently extending the age limit for wheelchair accessible vehicles (WAVs) from seven to ten model years.

Other recommendations include: requiring taxicab owners to operate their vehicles with digital trip meters; requiring taxicab owners to report trip data; administrative amendments to clarify data reporting requirements; and permitting three PTCs to participate in the Zero Emissions Grant Program beginning in 2025.

The initiatives and recommendations in this report were informed by an extensive, year-long process with several inputs throughout the review, including five public consultation sessions, two focus groups and two surveys involving over 4,000 participants, jurisdictional research, substantial internal analysis, and third-party academic research conducted by the University of Toronto.

This report was prepared in consultation with Policy, Planning, Finance and Administration, and Legal Services.

Licensing Cap on PTC Drivers

As a proactive measure to mitigate further risk of increasing traffic congestion and emissions, and impact to public transit use, staff are proposing a licensing cap that would limit further growth in the number of licensed PTC drivers, with an exemption for zero emission and wheelchair accessible vehicles. The cap would result in projected annual foregone revenue of $0.87 million (based on an average net increase of roughly 3,000 PTC driver licences per month) from the two PTC driver licence fees: (1) the $16.94 PTC per driver fee; and (2) the $7.99 Accessibility Fund Program fee.

Licensing fees are based on a cost recovery model and therefore foregone revenue would have offset future cost (that will now be avoided) to administer the additional PTC driver licences.

Updates to the Accessibility Fund Program (AFP)

Staff recommend initiatives aimed at addressing stakeholder feedback and Council direction to consider equity and accessibility for the VFH sector (as per item 2021.GL27.19). Firstly, to improve the financial feasibility of operating an accessible vehicle, this report recommends changing the existing $16,189 - $20,287 grant, which is disbursed over seven years, to a single $55,000 upfront grant for taxicab owners who purchase a wheelchair accessible vehicle (WAV).

In addition, to support on-demand, wheelchair accessible taxicab services, staff recommend the creation of a centralized dispatch service and replacing the AFP's current service standard incentive with a $15 per-trip incentive ($25 for off-peak, night-time trips) to taxicab drivers for every WAV trip they complete.

Both initiatives will be fully funded by existing and future revenues in the VFH Reserve Fund, which was initially set up to support accessibility initiatives for vehicles-for-hire. Based on current projections for VFH licensing volumes and PTC trips, yearly contributions to the Fund are projected to be $5.28 million. To disburse updated AFP grants and incentives, MLS will need to withdraw an estimated total of $24.2 million from the Fund from 2025 to 2027 based on current projections for VFH licensing volumes. Also, based on experiences in other jurisdictions, the costs to administer the centralized dispatch service is estimated to be no more than $1 million.

To maintain the financial sustainability of the VFH Reserve Fund, the Executive Director, MLS, has existing authority to adjust the AFP regulatory charge that most licensees within the VFH industry are currently required to pay upon licence renewals, as well as for every trip completed on a PTC platform. MLS, in consultation with the Financial Planning Division, will monitor the Fund's balance and adjust the AFP regulatory charge, if necessary.

Zero Emission Grant Program

If Council approves HOVR, Lyft and Uber's PTC grant remittance plans, all three PTCs will be eligible to participate in the grant program beginning January 1, 2025.  The estimated foregone revenue would be $4.85 million between 2025-27. These projections were included in MLS' report submitted as part of item 2023.EC6.6. The actual amount in foregone revenue will depend on the number of taxicab and limousine owners who purchase a zero-emission vehicle (ZEV) and PTC trips taken in a ZEV between 2025-27. The recommended licensing cap's exemption for ZEV PTC drivers may incentivize more drivers to transition to ZEVs, which could result in a higher than anticipated amount of ZEV PTC trips. MLS will continue to monitor the volume of ZEV PTC trips, as it has the authority to recalibrate the grant amount so that total foregone revenues do not exceed $10 million.

Staff Complement

To implement this report's proposals and initiatives, MLS has identified the need for 1 permanent and 3 temporary full-time positions at a total cost of $361,000 in 2025, to support the administration of Toronto Taxicab Licences and new technology solutions that will help the City collect and publish VFH trip data. These positions will be funded from the VFH Reserve Fund and will be requested for consideration through the 2025 Budget Process.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.