2025 Application Decision 22190-24

Application Decision

Taxi – New

Introduction

This is an application under the Passenger Transportation Act (Act) for a licence with a special authorization to operate a new taxi service in the Vanderhoof area. The Act regulates the licensing and operation of commercial passenger transportation vehicles and services in B.C. Under the Act, the Passenger Transportation Board (Board) makes licensing decisions on applications relating to taxis, limousines and other small shuttle and tour vehicles. The operation of these vehicles requires a licence or Passenger Directed Vehicle Authorization (PDVA). The Board has the authority to consider and approve applications for new licenses as well as applications from existing licensees to change terms and conditions of their licences (including the addition of vehicles to their fleet), change rates to be charged for a service, and request Temporary Operating Permits. Since September 2019, the Board’s mandate has included licensing decisions relating to Transportation Network Services, also known as ride-hailing services.

Jurisdiction

As required by section 26(1) of the Act, the Registrar of Passenger Transportation (Registrar) forwarded the application to the Board. Section 26(2) of the Act requires the Board to publish the fact and nature of the application, and section 27(3) requires it to consider applications and any written submissions it receives as result of publication.

Section 28(1) governs the Board’s consideration of applications as follows:

28 (1) The board may approve, in whole or in part, an application forwarded to the board under section 26 (1) [other licence applications] after considering the following:

(a) whether the applicant

(i) is a fit and proper person to provide the service the applicant proposes to provide under the special authorization, and

(ii) is capable of providing the service;

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

(i) whether there is a public need for the service, and

(ii) whether the application, if granted, would promote sound economic conditions in the passenger transportation industry in British Columbia.

Section 28(2) states that the Board must, if it approves an application, specify the special authorization that should be included in the licence, if issued by the Registrar.

Section 28(3) states that the Board may establish terms and conditions that apply to a special authorization included in a licence.

Section 7(1)(f) of the Act authorizes the Board to approve or set, for the purpose of establishing just and uniform charges, rates to be charged by a taxi operator.

Application

Applicant

The applicant, Vanderhoof Taxi Ltd., was incorporated in British Columbia on September 5, 2024. Its office is located in Prince George, B.C. The principals are Rashpal Singh and Ajaib Singh.

Applicant’s Request and Explanation

The applicant seeks a PDVA so it is licenced to operate a taxi service with one conventional taxi in the Municipal District of Vanderhoof.

The applicant provided the following public explanation that was published in the application summary:

I am looking to provide an essential service for people of Vanderhoof, BC as they are missing a taxi service in their community.

Overview of Applicant Materials

The applicant submitted application forms and other materials that meet Board application requirements. The applicant’s materials include the following:

• Business plan outlining the planned operation
• Balance sheet as at December 23, 2024, and a listing of start-up costs
• 36 months of cash flow projections
• CVs and criminal record checks for the two principals

Submissions

Section 27(2) of the Act provides that “any person may, within the time period specified by the board and on payment of the prescribed fee, make a written submission to the board respecting the application forwarded to it under section 26(1)”.

The Board did not receive submissions on this application.

Procedural Matters

Section 17 of the Act allows the Board to conduct written, electronic or oral hearings, or any combination as the Board, in its sole discretion, considers appropriate. This application is being conducted by way of a written hearing.

Analysis and Findings

Section 28(1) of the Act sets out the tests that must be considered by the Board in approving an application. There is first a threshold question, which the Board looks at 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 the service?

If the Board considers that an applicant is a fit and proper person and capable of providing a service, it then considers:

(i) whether there is a public need for the service, and

(ii) whether the application, if granted, would promote sound economic conditions in the passenger transportation industry in British Columbia.

Applicant Fitness

Regarding fit and proper, the Oxford English Dictionary defines fit as including “well adapted or suited to the conditions or circumstances of the case, answering the purpose, proper or appropriate … possessing the necessary qualifications, properly qualified, competent, deserving.” The dictionary defines proper as including “suitable for a specified or implicit purpose or requirement; appropriate to the circumstances or conditions; of the requisite standard or type; apt, fitting; correct, right.”

When looking at whether an applicant is fit and proper, the Board does so in the context of the passenger transportation industry in B.C. The Board considers factors such as the applicant’s past conduct and the potential risk of harm to the public and to the integrity of the transportation business if a licence is granted to the applicant. The Board will consider any relevant information concerning the conduct of the directors and key management staff to assess how the business is likely to be run in this jurisdiction.

Evidence and Analysis

The applicant has a National Safety Code certificate issued on November 21, 2024, with a rating of Satisfactory-Unaudited, which is normal for a new operator and is acceptable to the Board. The applicant’s principals completed the required Disclosure of Unlawful Activity and Bankruptcy forms and no concerns were noted. Criminal record checks for the two Singhs similarly raised no concerns.

As well, the applicant completed and submitted the Declarations and Consent form, indicating understanding of the liquor and cannabis laws relevant to operating a motor vehicle and the consequences for violating these laws. Since the applicant is a new operator, there is no history of complaints or administrative penalties. A Court Services record check by Board staff revealed no record of driving or other infractions.

Board Finding

Based on the information and evidence above, I find that Vanderhoof Taxi Ltd. is a fit and proper entity to provide the proposed service.

Applicant Capability

Capability is generally understood to mean that an applicant has the ability or qualities necessary to skillfully and effectively meet its obligations and achieve the results it says it will achieve.

When considering capability, the Board considers whether the applicant has demonstrated knowledge and understanding of the relevant regulatory requirements and policies governing passenger transportation, the applicant’s ability to comply with those regulatory requirements, and the applicant’s capability to provide the proposed service in a proper and lawful manner. The Board will also consider whether the applicant has the business knowledge to operate the service. This will include consideration of the business knowledge and experience demonstrated by management and the applicant’s business plan and financial statements.

The Board expects an applicant to demonstrate its competence and ability by providing sound and realistic information in its business plan and financial statements that is consistent and compatible with the transportation service it proposes. However, the Board’s interpretation of “capable” is also sensitive to the reality that applicants may not have all their operations and business plans solidified in advance of securing a licence. The Board avoids imposing a standard for capability that is unrealistic for applicants to achieve and which would not serve the purposes of the Act, including to ensure that the public has a supply of passenger transportation services.

Evidence and Analysis

I will start with whether the applicant, through its management, has the business knowledge to operate the proposed service. The applicant’s business plan points out that Ajaib Singh has been a ride-share driver with Uber and Lyft for the past few years but before that managed a transport company in Dubai. Rashpal Singh has owned and managed a salon and cleaning business for many years in Prince George.

Although brief, the business plan indicates that the applicant has researched the target market and has a basic marketing strategy. Considering that the proposed business will initially operate only one taxi, a sophisticated business plan is not required, and I find that the principals have sufficient business knowledge to operate the proposed service.

Next, I will consider whether that business knowledge is coupled with financial capability. The balance sheet that was provided shows assets composed of some cash and the vehicle, forming the shareholders’ equity, and no liabilities. Start-up costs are minimal given the size of the intended operation and are adequately covered by the assets. The cash flow projections do not provide assumptions for the revenue and may be somewhat optimistic regarding the projected sales, particularly in the initial months, but at the same time expenses are minimal, largely because there is no line item for driver wages. The business plan indicates an intention for Ajaib Singh to drive the taxi, so I assume this is why there is no wage expense, and Ajaib Singh will be paid through profits. Overall, I find that there is sufficient financial capability to operate the proposed service.

The Board must also consider whether the applicant knows and understands the relevant regulatory requirements and has the capability to comply with those requirements. This includes providing ongoing active management of the vehicles and drivers, such as onboarding and training, as required under sections 6 and 7 of the Regulation. There was no specific information in the business plan regarding the applicant’s policies for meeting its regulatory requirements, but the plan does state an intention to “follow all safety to the highest standards.” The manner in which the applicant navigated this application process also indicates an understanding of the requirements. I am, therefore, willing to give the applicant the benefit of the doubt in finding it understands the regulatory requirements and will comply with them. However, I urge the principals to spend time learning about these requirements and developing policies to ensure compliance, especially if it expands its fleet and hires other drivers as it hopes to do in the future.

Board Finding

Based on the evidence above, I find that Vanderhoof Taxi Ltd. has demonstrated it is capable of providing the proposed service.

As the threshold questions of fitness and capability have been answered in the affirmative, I will now consider the issues of public need and sound economic conditions.

Public Need

Is there a demonstrated public need for the service the applicant proposes to provide?

First, the Board considers whether there is demand for the proposed service – that there are people who would use the proposed service. Second, the Board considers public need in terms of the ways passenger transportation benefits the public, including (but not limited to) the following factors outlined in policy:

• Accessibility – how the proposed service would improve access to passenger transportation.
• Affordability – how the proposed service would increase affordability to the public.
• Safety – how the proposed service would increase the industry’s safety, beyond the determination that the applicant is fit and proper, and capable.
• Service Quality – how the proposed service would increase the service quality to the public.

While an application does not need to demonstrate that the proposed service would address all of these factors, an application should, as much as possible, provide evidence and an explanation of how the proposed service would promote any relevant factors. The supporting evidence should be factual and objective, and applicants should not rely on general claims or their own opinion.

Evidence and Analysis

There was no specific information regarding how the applicant will distinguish itself as far as accessibility, affordability, safety or service quality; there was just a general intention to be safe and provide a high standard of service. So, the matter comes down to whether there is demand for its proposed service.

As noted by the applicant, Vanderhoof has a population of about 4,500 people but has no existing taxi service. According to Board records, the only taxi business currently operating in the Buckley-Nechako Regional District is Kaiser Services, which operates one conventional taxi in a different town, Smithers. The only public transportation in Vanderhoof is a 12-person community bus. The applicant says that as part of its research, it spoke to the bylaw compliance officer for Vanderhoof, who confirmed the need for a taxi service in town.

As has been noted in the 2024 Report of the Special Committee to Review Passenger Directed Vehicles, rural and remote communities generally need more passenger transportation. This appears to be true for Vanderhoof.

Board Finding

Based on the above information, I find that there is a public need for the proposed service.

Sound Economic Conditions

Would approving the application support sound economic conditions in the passenger transportation business in British Columbia?

An applicant is required to show how their proposed service would support passenger transportation in BC, by speaking to the various sound economic conditions factors outlined in policy:

• Competition – whether the proposed service would promote the market forces that keep businesses accountable to customers.
• Innovation – whether the proposed service would move the industry forward.
• Sustainability – whether the proposed service will help the passenger transportation industry stably meet demand into the long term.
• Variety – whether the proposed service will increase the diversity of services available to customers.

While an application does not need to demonstrate that the proposed service would address all of these factors, an application should, as much as possible, provide evidence and an explanation of how the proposed service would promote these factors. Applicants should provide clear information about the service it proposes, and supporting evidence that is factual and objective. They should not rely on general claims or their own opinion.

The Board considers the issue from a wide-ranging perspective. Generally, it is the Board’s view that the overall economic interests of the passenger transportation industry weighs more heavily than the economic and financial interests of any particular applicant, submitter, or business.

Evidence and Analysis

In the present case, there is nothing remarkable, either good or bad, about the proposed service as far as innovation, sustainability and variety. The matter really comes down to whether granting the application would promote healthy competition. Since no other taxi service exists in Vanderhoof, there is no competition and granting the application would, in fact, enhance the economic conditions in Vanderhoof by meeting a public need.

Board Finding

Based on the analysis above, I find that approving the application would promote sound economic conditions in the passenger transportation industry in B.C.

Rates

Section 7(1)(f) of the Act sets out the test that the Board must consider in setting rates – that they be “just and uniform.”

The applicant proposes company-specific metered rates for Board approval:

In addition to any rationale or financial information from the applicant (which was not provided in this case), the Board may consider the following factors or questions when deciding whether to approve taxi rates to be charged, or rules that govern how rates are to be charged:

• Are rates and rules clear and complete so total fares are reasonably predictable and understandable for paying passengers?
• Are the rates simple to measure?
• Are the rates within industry norms for similar services in the area or in a comparable area?

The proposed rates are clear, complete, predictable, and simple to measure. They are also within industry norms for comparable services. Accordingly, the rates proposed by the applicant are approved as set out in the application summary.

Conclusion

For the reasons above, this application is approved in whole, and I establish the requirements that follow in appendices to this decision:

• Appendix 1: Notices Respecting This Approval
• Appendix 2: Approved Terms and Conditions of Licence
• Appendix 3: Data Requirements
• Appendix 4: Rates and Rules

Vanderhoof Taxi Ltd.

Appendix 1: Notices Respecting This Approval

Vanderhoof Taxi Ltd.

Appendix 2: Terms and Conditions of Licence

Appendix 3: Data Requirements

Data Requirements, effective September 3, 2019, are applicable.

Appendix 4: Rates and Rules

The follow Board rates and rules are applicable:

• Rates Rule – Standard Rule for Taxi Rates 

• Rate Rule – Taxi Meters Rule