Licence Application Decision

Transcription

1 Licence Application Decision (Taxi - New) Application # Applicant Express Taxi Ltd. Principals Address Application Summary YOUNIS, Najih Ahmed 2142 Meadowlark Dr., Comox, BC V9M 3P4 Special Authorization: Passenger Directed Vehicles New taxi service in Comox, Courtenay, Cumberland area with 4 vehicles. All vehicles will be conventional taxis Rates Date Published in Weekly Bulletin Submitters (and representatives) Metered rates November 12, 2015 BCTA (Mohan Kang) Comox Taxi (McLachlan Brown Anderson, William A. McLachlan Barrister and Solicitor) Ambassador Transportation Corporation Board Decision The special authorization is refused. Decision Date January 20, 2016 Panel Chair Spencer Mikituk I. Introduction This is an application from Express Taxi Ltd. (Express). The applicant is applying for a new passenger transportation licence with a Special Authorization (SA) to operate 4 conventional taxis with a seating capacity between 2 and 7 passengers plus a driver. The requested originating area is from points in Comox, Courtenay, and Cumberland British Columbia and may terminate at any point on Vancouver Island. Express is located in Comox, British Columbia. Page 1 Passenger Transportation Board Decision

2 II. Background Information received with this application: PDV vehicle proposal PDV proposed terms and conditions of licence Disclosure of unlawful activity and bankruptcy Disclosure of passenger transportation ownership Business plan Financial Information Municipal notices Public need indicators 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. I will consider each of these points in making my decision. IV. Rationale and Submissions (a) Applicant s Rationale Express states that the Comox valley area can support, and is in need of, additional taxi services as it continues to grow. Market research was conducted throughout Comox, Courtenay, and Cumberland and the clear response was that those who needed taxis were waiting longer than expected to get from A to B, and in particular getting to and from the airport. Given the Province s growth statistics (100,000 by 2020), Express Page 2 Taxi Decision Passenger Transportation Board

3 believes that their conservative 4 vehicle entry into the market will allow for managed growth and expansion to meet future demand. (b) Submissions & Applicant s Response Submissions were received from: Comox Taxi Ltd. (W. McLachlan-counsel) BCTA (Mohan Kang) Ambassador Transportation Corporation The Comox Taxi Ltd. and Ambassador Transportation Corporation submissions noted these common areas of concern: There is no public need for additional commercial passenger services in the Comox Valley in light of the current services available. Services available as of November 17, 2015 are: o Comox Taxi-15 vehicle fleet o Ambassador Taxi-2 taxis, 3 limousines, 3 shuttles o Comox Coach and Shuttles-2 coach buses, 3 shuttles o Island Link-picks up in Comox Valley 5 times per day o Tofino Bus-picks up in the Comox Valley 3 times per day o Island Chauffer-4 shuttles and is present at Comox Airport (YQQ) o Sky High Shuttle-2 shuttles and is present at YQQ Subject to minimal exceptions, the customers are well served within a 10 or 15- minute window. There are occasionally some peak unusual demands, such as bar closing on Friday and Saturday nights, particularly in the summer if there are weddings or special occasions at the same time. Another busy time is 1300 weekdays, when arrival of the Powell River ferry and the Westjet flight from Calgary present isolated peak demands which is only from time to time. There is a question on the fitness of Express and their ability to operate a viable taxi service in the Comox Valley. The intended business model of Express must be assumed to be taking flags and customers from the existing companies operation, rendering them uneconomic. Page 3 Taxi Decision Passenger Transportation Board

4 Granting the application would not promote sound economic conditions in the passenger transportation business in the Comox Valley. It will have a negative impact on the two BCTA member companies which have spent substantial money to improve the taxi service in the region and also improving taxi service to the people with disabilities by operating 3 accessible taxis and replacing environmentally friendly taxis to address the issue of vehicle emissions. Comox Taxi Ltd. has additional available capacity on each day of the week and shift, however the customers are simply not there. The passenger count for each of the 3 shifts, particularly night shift, would suggest the Comox Valley is well served by the existing taxi operators. Express replied to the submissions as follows: There is a large number of complaints regarding delays and long waits. It included a petition signed from over 30 businesses and individuals indicating that there is a public need in the Comox Valley. Although the applicant s principal might not have as much experience as the two existing companies do, he is capable and has enough experience. Day after day the Comox Valley is growing and more services are added such as Air Canada, Westjet, Central Mountain Air and other airlines which have created more traffic and need for taxis. These are all good indications that Express Taxi will promote sound economic conditions in the passenger transportation business in the Comox Valley. The Board gives more weight to submissions that back up general claims with facts or details. I have considered the submissions and the responses in my review of this application. Page 4 Taxi Decision Passenger Transportation Board

5 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. The Board wants to be satisfied that there is a reasonable connection between the number and types of vehicles requested and public need. The Board finds comments written by the travelling public or from people who would refer the service to others or book the service for others more useful than surveys. Letters of support show the Board that the writer has thought about the matter and is interested enough to take the time to tell you why he or she supports your application. Generally, the Board does not give as much weight to surveys as indicators of public need. Often surveys do not give the Board specific information about why, when and how often the participants in the survey would use a new taxi service. The Board looks for detailed information that the applicant collects directly from individuals who would use the proposed new taxi service. The number and types of vehicles proposed by the applicant should be supported by evidence given with the application. Comments written by individuals who would benefit from the proposed new taxi service should contain the following details: Why, when and how often the writer needs the proposed taxi service in the area or areas you want to serve; Whether the writer uses any other taxis now and if so, how often and how long do they wait for a taxi; Whether they use any other taxi services now and why they would use the proposed taxi service instead; The writer s name, signature, and contact information. Page 5 Taxi Decision Passenger Transportation Board

6 To show public need for the new proposed taxi service, Express has submitted a public opinion survey. The survey consisted of one question which was answerable by a Yes or No. The combined survey results are shown below: 1. Does the Comox Valley need more taxi services? Respondents: 27: Yes 23, No 0, Result 85% on Yes. Four surveys answered neither yes or no. Board Analysis and Findings Express has not supplied information regarding the reliability of their survey. Information such as how the survey was developed, who conducted the survey and when, where, and how the survey was conducted is used to evaluate the reliability of the survey. The structure of the survey only allowed the participants to input either yes or no responses to the one question. It appears that there was no option for the respondents to make comments regarding how they use taxis or if there were any issues with the existing service such as wait times or taxi availability for either conventional or wheelchair accessible taxis. The one question was written in such a way as to bias the participants by using the phrase does the Comox Valley need more taxi services which is not clearly defined. Other than the participants name and phone number, there is no information from Express on participant reliability or validity. The survey is not compelling evidence of public need for additional taxi service in the Comox Valley. There is no other significant evidence of public need for the new proposed taxi service in the Comox Valley area or to justify the number and types of vehicles proposed by Express. The onus is on the applicant to show public need. I find that the applicant has not demonstrated a public need for its proposed taxi service. (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? Page 6 Taxi Decision Passenger Transportation Board

7 Express was incorporated on August 17, The principal is Mr. Najih Ahmed Younis. The applicant states that he has over 5 year s experience as a taxi driver. The disclosure forms of Unlawful Activity and Bankruptcy and Passenger Transportation Ownership indicated no discrepancies. There has not been any information brought to my attention to prove the applicant is not fit and proper. The applicant has applied for and has received a National Safety Code (NSC) Safety Certificate. Express states that the proposed initial taxi fleet will be comprised of 4 modern vehicles (2 cars and 2 vans) which will be subject to a full maintenance program to ensure reliability and compliance with all regulations. All drivers will be required to have a clean driver s extract. New hire drivers will be required to submit a clean 5-year extract, minimum 2 years direct experience, and criminal background check prior to consideration for employment. Express would also require that all existing and new hire drivers study and comply with Express s Driver Training Manual. Express would maintain its own office and provide experienced dispatch personnel to ensure prompt responses to requests. Express has stated that it is their intent to pursue the certification necessary to provide service to customers with disabilities, and the expectation is to have the certification completed and a properly equipped vehicle on line within 180 days of the start of operations. Express has stated that there is funding available to obtain the necessary licencing, vehicle acquisition, as well as purchase all ancillary equipment necessary for operating this new proposed taxi service. However, this application did not include a balance sheet or statement of personal net worth or a 3-year cash flow projections to show start up and ongoing costs and expenses. Financial information is required to show the applicant s fiscal condition and that they are operating a viable business. I am unable to determine the applicant s capability due to the absence of the required financial information. Page 7 Taxi Decision Passenger Transportation Board

8 (c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? Reviewing this particular application, the applicant has not demonstrated public need to my satisfaction. As a result, I am unable to find that the application, if granted, would promote sound economic conditions in the passenger transportation business in British Columbia. VI. Conclusion For the reasons above, this application is refused. If Express Taxi Ltd. makes an application in the future, the applicant should refer to the I want to start a new taxi service page on the Board s website. Page 8 Taxi Decision Passenger Transportation Board