Most taxi operators use taxi meters to display fares to passengers. Metered fares are calculated based on flag, distance, and time rates. In some areas, taxis may charge non-metered rates. Taxi operators may only charge rates that are approved by the Passenger Transportation Board (Board). Taxi operators may not charge variable rates that respond to changes in demand.
Types of rates
Metered rates
In British Columbia most taxi rates are calculated on a meter that may be calibrated and tested. Taxi meter rates are based on the flag rate, the distance rate, and the time rate. The flag rate is the fee at the start of the trip – it appears when the meter is turned on. The distance rate is a per kilometer rate. The time rate is estimated in seconds or minutes. If a taxi speed falls below a “crossover” rate, then the meter applies the time rate rather than the distance rate.
Non-metered rates
Hourly rates
Hourly rates, also referred to as "charter rates", calculate the charged rate based on the amount of time the vehicle is booked for or travelling, rather than distance.
Point-to-point rates
Point-to-point, also referred to at times as "zone rates" under certain circumstances, include all rates that cover transportation of a passenger from a fixed starting location to a predetermined end destination, set out in the rate. In some cases this can be as broad as one city to another, or may break up areas into zones in which travel from one zone to anywhere in another zone is covered by a specific fare regardless of distance and number of passengers.
Individual fares
Individual fares are similar in principle to point-to-point fares, as they require set starting and end locations, but differ based on the number of passengers in the vehicle.
Crew contact rates
Crew contract rates are negotiated rates between a specific company and a licensee to transport crew for work purposes (e.g. Canada Post, school boards, railway companies, etc.) Crew contract rates do not need Board approval if there is a valid, current written contract between the two entities and the licensee has a crew transportation service limitation in the terms and conditions of their licence.
Operating areas with defined rates
There are eight different areas with geographically restricted rates rules defined in the Board's Rates Rules. These rules establish the rates for all licensees in the following regional districts and municipalities:
Rate bands
In regions where they have been implemented, rate bands simplify the process to make changes to metered rates to provide more flexibility to licensees.
Rule 3 - Rate Bands defines the Board-approved minimum and maximum rates for each region for the flag rate, 5km trip fare, and time rate.
Any combination of flag, distance, and time rates that meets all criteria is permitted to be charged in the region without additional Board approval. There is a calculator available to help you verify your rates.
Rates rule - Standard Rule for Taxi Rates
Rule 2 - Standard Rules for Taxi Rates contains all requirements for taxi licensees' rates, fees, and other charges.
Taxi cost index (TCI)
The Taxi Cost Index (TCI) is an objective tool that the Board uses to identify rate adjustments for taxis in British Columbia due to inflation. The TCI includes a distinct cost profile for each Passenger Transportation Region consisting of the relative proportion of only the costs associated with operating a taxi business. TCI uses Consumer Price Index (CPI) data for B.C. and other relevant data fields obtained from Statistics Canada and BC Stats to determine the relative change of these cost categories on an annual basis. TCI aims to strike a balance between the interests of passenger transportation operators and the consumers they serve.
For regions where rate bands have been implemented, the adjustment will automatically be applied only to the rate bands minimum and maximum rates. In regions where standardized rates have been implemented, adjustments will be applied to the approved flag, distance, and time rates.
Taxi cost index rule
The Board’s Rule 6 - Taxi Cost Index sets requirements for licensees in TCI process.
