Licence Application Decision
Application #
Trade Name (s)
Principals
Address
Current Licence
Application
Summary
(Taxi - New)
183-16
Applicant CONWAY, Dale Patrick
Current Taxi
CONWAY, Dale Patrick
3225 Oriole Drive, West Kelowna, BC. V4T 1A4
None
Special Authorization: PDV
New taxi service in the Regional District of Central Okanagan (RDCO)
including the communities of Kelowna, West Kelowna, Peachland and
Lake Country with 2 vehicles. All vehicles will be conventional taxis.
Rates
Metered rates
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Date Published in
Weekly Bulletin
Submitters (and
representatives)
Board Decision
Decision Date
Panel Chair
I.
July 6, 2016
• Checkmate Cabs Ltd.
• Kelowna Cabs (1981) Ltd.
• BC Taxi Association.
The special authorization is approved.
Terms and conditions of licence are approved as set out in this
decision.
Rates sought by the applicant are approved as set out in this decision.
October 25, 2016
Roger Leclerc
Introduction
This is an application for a new passenger transportation licence with a Special
Authorization. The applicant, Dale CONWAY (doing business as Current Taxi) proposes to
operate 2 all-electric vehicles as taxis in Kelowna and surrounding area. It proposes to use
new technologies and take an innovative approach in offering taxi service that are appenabled and luxurious. The proposed terms and conditions of licence are for vehicles with
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Decision
a seating capacity of 2 to 7 passengers plus the driver. If approved, the applicant would
charge the same metered taxi rates that are charged by all taxis in Kelowna.
The Board sent a letter August 30, 2016 to the applicant requesting additional details
pertaining to its operational plans and service usage agreements. We received a response
on September 7, 2016. We sought further clarification from the applicant on October 17,
2016 and received a reply on the same day.
In support of this application, Dale Patrick CONWAY provided the following documents.
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PDV vehicle proposal
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Business plan
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Disclosure of Unlawful Activity and
bankruptcy form
Public need indicators
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Financial information
Municipal notice
Condensed Operating Plan
Declarations form
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.
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III.
Rationale and Submissions
(a) Applicant’s Rationale
The applicant aims to provide the Kelowna area with an environmentally focused taxi
option that is currently unavailable. It will provide this by using 100% electric vehicles and
app-based booking option (in addition to flagging).
(b)
Submissions & Applicant’s Response
Submitters
Kelowna and the surrounding area has 8 taxi service providers (licensees) with a total fleet
size of 99 vehicles. Submissions were received from the two largest two taxi companies in
the area, and from a taxi association:
• Checkmate Cabs Ltd.
• Kelowna Cabs (1981) Ltd.
• BC Taxi Association.
The following points were made by submitters:
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The Central Okanagan Household Travel Survey showed a decrease in the use of
passenger transportation from 17.6% in 2007 to 15.6% in 2013.
During non-peak times, one can expect 50 – 70% of the vehicles to be on shift,
meaning they are available to accept and complete dispatch trips. This value
increases to 90 – 100% during peak times such as busy holidays and weekend
nights. All cars who are not on officially on shift are generally working as “flag” cars
out of the Kelowna International Airport.
While increases in demand for the services do occur, this generally happens as a
result of seasonal tourism and activities and can easily be handled by the already
existing fleets by using a TOP’s application if necessary.
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Kelowna Cabs recently applied for 8 Temporary Operating Permit’s and were
awarded 4 by the PTBoard
The applicant is proposing electric cars that will have problems charging when on
long trips and even locally when trying to cover the long distances its drivers have
to face.
The biggest problem for transporting people is between 1 am and 5 am, commonly
referred to as the bar rush, which is when the applicant plans to not be in operation.
The Board should not grant additional plates to a new company when it has refused
applications from current licensees.
The 2015 Community Trends Report by the City of Kelowna identifies that
Kelowna’s population is approximately 123,500, of this population 82% travel by
use of personal vehicles, 11.1% travel, by means of walking/bicycling, leaving 6.2%
traveling by use of public transportation (taxis, city bus, etc.).
The growing number of wine tour vehicles that are currently operating under a
General Authorization (GA) licence is overwhelming. This has a negative impact on
taxis.
The majority of the cabs serving in Kelowna region are environment friendly hybrid
Prius cars.
Applicant’s Response:
The applicant replied to the submissions and made the following points:
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The high, upfront cost is offset by the savings from the drastic reduction of fuel and
maintenance.
Support letters prove that numerous businesses are eager to work with the
applicant because of a new service that is not currently available.
Letters of support from the mayors of Kelowna and West Kelowna support
environmental progression of transportation in their communities.
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The applicant’s proposed vehicles are considerably more efficient and
environmentally beneficial than the Prius. The Tesla Model S will produce 12,000
lbs. less CO 2 each year than a 2016 Prius.
The addition of two requested vehicles would not flood the market. Currently the
taxi to population ratio for their region is 1:1650 with the provincial average being
1:1276 despite the fact that the population of the Regional District of Central
Okanagan has grown at double the provincial average rate in the last 10 years.
Submitters’ comments regarding the overwhelming amount of GA vehicles is
irrelevant to the application and should not be taken into consideration.
Operating hours are between 05:00 and 01:00 because the target market initially
will be the corporate/environmental tourist, not the bar rush crowd. Secondary to
that is the applicant’s desire to stimulate an increase in local travel by offering an
exciting service.
The statistics in the City of Kelowna’s “Community Trend Report” do not prove that
the city seeks to reduce taxi service; to the contrary, the report often expresses the
aim to provide residents with more sustainable modes of transportation.
The decline in passenger transportation from 17.6% in 2007 to 15.6% in 2013
statistics are incorrect. The applicant contacted the author of the report and he
stated the taxis are under “other” category and are not a significant mode for
residents. The “other” category numbers have also declined for the same
timeframe; therefore, the applicant believes it proves a greater need for their
service.
Kelowna Cabs’ recent application for 8 TOPs is irrelevant to this application.
The Central Okanagan Household Travel Survey clearly shows a 6.8% increase in
population between 2007 and 2013 and this trend is expected to continue at a rate
of 1.51% annually until 2030.
The applicant’s management team is able to operate a small taxi company due to
previous logistical and operational experience.
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The electric cars have an expected range of 386 kilometers. This is more than the
expected daily need, and gives them flexibility to travel long distances. Vehicles can
be topped up at numerous charging stations in a very short time.
The Board gives more weight to submissions that back up general claims with facts or
details. I have considered the submissions and responses in my review of this application.
IV.
Applicant’s Proposed Operation
The applicant proposes to provide taxi service as follows:
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Electric Vehicles Vehicles are sedan-style electric Teslas (2-7 passengers plus
driver)
Operating Area The applicant seeks to serve mainly the communities of Kelowna,
West Kelowna, Peachland and Lake Country.
App Dispatch & Payment The applicant plans to hire an app development
company in San Francisco to build a mobile app that will be available in Apple’s
“App Store” and at “Google Play.” Passengers hire the vehicle through an app from
their smartphone or tablet with these features:
o Book Current Taxis with an app on a smartphone or tablet
o Pay through the app with credit or debit
o Running estimate of the trip fare (fares charged are based on the rate
displayed by the taxi meter)
o Passengers can communicate with drivers through the app
o Track vehicle locations
Hailing Customers may also hail the taxi from the street and pay with cash, credit
and debit card.
Identification as Taxis The applicant:
o seeks express authorization to use a top light. However, for aesthetic reasons
it does not plan to use a top light unless requested by customers or other
regulators.
o will paint “Current Taxi” on the side of its vehicles in large letters
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V.
o is exploring the idea of installing a red, LED “Taxi” sign inside the front and
rear windows (visible from outside)
Taxi Meter Fares will be calculated by taxi meter model SPT-01 (by Hale
Electronic); a rearview mirror replacement that integrates the taxi meter display
and provides a luxury experience in the taxi.
Taxi Rates The applicant proposes to charge the same rates that are charged
under the uniform rate rule for taxis in Kelowna.
Hours Service will be provided year round, 7 days a week from 5:00 a.m. to 1:00
a.m.
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 applicant proposes to operate taxis and it aims to change the way people think about
taxi service. It is marketing itself as an innovative service that is made distinct by its use of
newer app technologies and electric Tesla vehicles that are more luxurious and more
environmentally friendly than a Prius.
The applicant supplied the following indicators of public need for its proposed taxi service:
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Letters of Support
Form Letters
Pending first-use agreements with a casino and hotel
Taxi to Population Ratios
Local economic indicators
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Passenger Transportation Board
Letters of Support & Form Letters
The applicant has submitted 9 letters of support with 3 of the letters from mayors of
Kelowna, West Kelowna and Peachland. These 3 letters from mayors express support for
an environmentally friendly taxi business. The other 5 letters were from businesses and
hotels stating they would use the services and in some cases use it as the preferred service
of client transportation. A ninth letter of support was received from the applicant’s
employer who provided a character reference. The applicant also attached a form letter
with 106 signatures supporting the application.
I put some weight on the letters of support because they indicate a usage for the new
service if approved and also some businesses would have the applicant as the first choice
for their clients. I do not put much weight on the form letters that have signatures but do
not identify they would utilize the services if the applicant was successful in obtaining a
PTB license.
Transportation Agreements
In the first year of operation the applicant will centralize the 2 vehicles at some of
Kelowna’s premier hotels, such as the Best Western Plus Kelowna Hotel and Suites and
Manteo Waterfront Resort.
Current Taxi is in contract negotiations with Lake City Casinos Kelowna to provide them
with transportation services to transport VIP’s to the casinos. The applicant is also in
negotiations with Best Western Plus Kelowna to secure an operational agreement that will
see Current Taxi commit to locating, managing its operation and electrical charging its
vehicles at the hotel site. The hotel will have the applicant as first choice for its clients
requiring taxis.
The Board requested further details about the arrangement it has with Lake City Casinos in
Kelowna. The company indicated that they would utilize the applicant’s services on a firstuse basis to provide a taxi refund service for their VIP clients. The applicant stated that
they have not finalized the contract with the Best Western Plus Kelowna yet but gave
contact information for the owner who would validate an agreement is in the works. The
applicant is finalizing a financial arrangement with the hotel to host and charge their
electric vehicles at the hotel.
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The applicant will provide the Best Western Plus Kelowna, Manteo Resort and Lake City
Casinos Kelowna with mobile tablets preloaded with Current Taxi’s mobile app. These
tablets will enable guest services representatives of these companies to communicate
directly with Current Taxi drivers. Additional tablets may be provided to partner
organizations if requested.
I put some weight on the evidence of contracts with some of the hotels and casino and a
commitment to have the applicant as first responder to service their clients and the other
additional letters of support stating that they would utilize the services of the applicant.
I also put some weight on the applicant identifying that they will be introducing British
Columbia’s first 100% battery electric taxi fleet. There are no other companies in the
service region offering an innovative app based electric taxi service. The applicant has
provided 3 letters of support from local city mayors who state an increasing population in
their communities and support taxis that are environmentally friendly.
Taxi-to-Population Ratios
The applicant seeks to operate in Kelowna and surrounding area that is now served by 8
licensees with 99 vehicles. The applicant states that a current taxi-to-population ratio is 1
taxi per 1,650 people and that this falls considerably below the ratio for the Greater
Vancouver Regional District of 1 per 1,198 and the provincial average of 1 per 1,276. Of the
109 taxis available in the Regional District of Central Okanagan, no electric vehicles or
luxury class vehicle are operated as taxis.
The following statement is taken from the Board’s Application Guide 1 “I want to start a
new taxi service”:
The Board may consider population statistics when reviewing public need. However,
the Board does not usually rely on “taxi to population” ratios to determine need as
other factors may affect need for a new service. Such factors include the size of an
area, public transportation options, existence of transportation hubs and vehicle
usage.
Taxi-to-population rations can vary widely among Regional Districts. In this case, the
applicant did not provide additional analysis to show that its comparisons demonstrate a
need for additional taxis in Kelowna. It provides some corroborating of other evidence but
it is not, in and of itself, persuasive in this case.
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Local Economic Indicators
The submitters identified that the Central Okanagan Household Travel Survey showed a
decrease in the use of passenger transportation from 2007 to 2013. All cars who are not
officially on shift are generally working as “flag” cars out of the Kelowna International
Airport.
The applicant has included an insert from Market Segmentation which states that there are
over 45 hotels and resorts and over 100 bed and breakfasts in the Kelowna area. These
facilities account for 4,695 rooms to support 1.5 million visitors annually and $279,000,000
in visitor spending. Hotel occupancy rates have continued to increase from 51% in 2010 to
57.6% in 2014. Kelowna International Airport (YLW) had a 4% growth in passengers
between 2012 – 2013 and reached 1,594,467 passengers in 2015. The 3 letters of support
from local mayors also state an increasing population in their communities. I put some
weight on the statistical information along with the population growth validation from the
3 letters of support.
Analysis & Findings
In reviewing the applicant package in its entirety I find there is sufficient evidence to
demonstrate a public need for 2 additional specialized vehicles for the Kelowna area.
(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?
The required disclosure forms were included with this application with no discrepancies.
The applicant’s National Safety Code status indicates a safety rating of SatisfactoryUnaudited.
Current Taxi will be managed by the applicant, a local entrepreneur who has dedicated his
career to exceeding customer expectations. He has most recently worked in the gaming
industry and for the City of West Kelowna as a firefighter.
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Over the past 6 years the applicant has managed a team of 65 employees and some of his
key roles have been logistical and personnel development at casinos. The applicant will be
responsible for business operations and development. The applicant’s spouse will be
responsible for human resource and staff development.
Current Taxi will retain ownership of the vehicles and drivers will lease the vehicles from
Current Taxi based on a nominal lease fee per shift. The lease fee will be equal to the
companies associated vehicle insurance per shift. Drivers will also pay a percentage of
fares collected by Current Taxi based on a sliding scale of revenues from sales.
The applicant identifies a substantial upfront cost of the high end vehicles and savings from
drastic reductions in fuel and maintenance. The operation will save on dispatch costs by
utilizing the taxi app to access services.
The application included financial information and balance sheets, as well as cash flow
statements for the years 2017, 2018 and 2019. Financials are based on a projection of 1.3
customers per operating hour starting off and increasing to an average of 1.6 by end of the
first year and 2 per hour for second year and 2.3 in third year. The applicant has a business
model that appears carefully researched, progressive and reasonable.
The board wrote the applicant on October 17, 2017 requesting additional information
regarding app development and asking if the applicant were approved when could
operations start. The applicant responded back stating that they would need 6-8 weeks’
lead time to acquire a number of company assets and to develop the mobile app software.
Each of the fleet vehicles will be custom built by Tesla, and the applicant has been told to
expect a 6 to 8-week period before vehicles will be delivered to British Columbia.
The vehicle and app development timeframe will also provide Current Taxi with the
opportunity to finalize and secure other assets required for operational launch, such as
vehicle graphics, taxi meters and office supplies.
In the event that the applicant takes delivery of fleet vehicles prior to the completion of the
mobile app, Current Taxi will start providing service to two corporate partners utilizing the
cellular phones provided to the drivers.
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The financing for this business will be a combination of the applicant and a financial
institution and an operating line of credit will be put into place. The long term debt will be
amortization over a seven-year period.
I find that the applicant is a fit and proper person and capable of providing the proposed
taxi service.
(c)
Would the application, if granted, promote sound economic conditions in the
passenger transportation business in British Columbia?
The Board looks at the “economic conditions” issue from a wide-ranging view. The
economic conditions of the “transportation business in British Columbia” are considered
ahead of the economic and financial interests of an individual applicant or operator. The
Board supports healthy competition. The Board discourages competition that could unduly
harm existing service providers.
There are 3 submitters to this application which represent most taxis operating in the
Kelowna area. They oppose the additional direct competition in a market they say is
already competitive and which does not have enough business for their vehicles and which
makes it challenging to make a profit.
The applicant proposes a high-end, app-based, electric taxi service. It is a taxi with some
additional features that distinguish it from other taxi businesses. Its customer base is
broad but anchored in market segments represented by people who prefer app dispatch
over phone dispatch, and by businesses seeking a premium taxi service for a regular taxi
price. The applicant will have 2 contracts in place and would have minimal impact on
direct competition because of the size of their business.
The submitters have referred to past decisions of the Board that refused their requested
additional vehicles or were approved in part only. The Board considers each application
individually and makes decisions based on the evidence it receives from applicants at the
time.
It is important that the taxi service be clearly identifiable as a taxi and the applicant plans
to paint the word “taxi” on the sides of its vehicles. The Board does not require that top
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lights be used, but it typically provides authorization for their use. I am authorizing their
use in this case.
The applicant is proposing a small-scale operation that will provide enhanced service at the
same price. The Kelowna area market should be able to absorb 2 additional taxi vehicles.
The submitters stated that there are a number of GA vehicles operating in the same service
area. The economy is poor. There are already eco-friendly vehicles in Kelowna and there is
sufficient taxi capacity in Kelowna. The applicant states that GA licences are irrelevant. I
do not put much weight on the submitter’s claims.
I find that there are significant distinctions between Current Taxi’s application and taxis in
terms of service, booking and payment options and vehicles. Current taxi’s meter rates will
be the same as existing taxi service providers in the same service area. Current taxi has
two service contracts being finalized which will provide them first option on select client
services. I find that approval of this proposed innovative service should not create
destructive competition in the passenger transportation industry.
I am convinced that the commercial passenger transportation sector will benefit from
providing choice for the consumer and will allow this sector to advance by allowing
innovation within the current regulatory regime.
I am also aware that the Board has stated in its “Principles and Parameters for Mobile Apps
in Taxis and Limousines with Special Authorization licences in British Columbia, April 30,
2014”:
“Taxi companies must continue to provide service that is available
to all passengers. Apps must be integrated with, not exclusive of,
other dispatch methods”
In the present case, I find that this policy may be waived due to the innovative approach in
offering taxi service that are app-enabled for dispatch and initial payment and final
payment made based on meter reading.
I find that approving 2 additional vehicles as proposed by the applicant would promote
sound economic conditions in the industry.
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VI.
Other Matters
Rates
Proposed rates are the same as other taxis in the Kelowna area. The rates are approved.
Taxi Meters
The published application proposed terms and conditions that enable the use of a taxi
meter. The Board generally requires the use of taxi meters in taxis. In this case, I am
applying that requirement in the terms and conditions approved with this application.
Hours of Operation
The applicant plans to operate 7 days a week between 5:00 a.m. and 1:00 a.m. The
applicant states that this reflects the market it is targeting.
LED Lights
The applicant is considering the use of a red, LED “taxi” sign inside the taxi. The
Commercial Vehicle Safety Branch is responsible for vehicle compliance with the Motor
Vehicle Act Regulations. This includes lights (and top lights) on motor vehicles.
Licensees are responsible for addressing these issues with the Commercial Vehicle Safety
Branch. Prior to installing any red, LED “taxi” signs, the applicant should seek clarification
on what is permitted.
VII.
Conclusion
For the reasons above, this application is approved as set out in this decision.
I establish the activation requirements and the terms and conditions of licence that are
attached to this decision as Appendix I. I establish the rates that are attached to this
decision as Appendix II. These form an integral part of the decision.
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Appendix I
CONWAY, Dale Patrick
dba Current Taxi
Licence Required
to Operate
Vehicles
Approval of
application may
expire
The Registrar of Passenger Transportation must issue the applicant a
licence before the applicant can operate any vehicles approved in this
decision.
1. The applicant must activate at least 50% of the vehicles within 6
months of the date of this decision.
2. If the applicant does not meet the requirements set out in 1 above,
this Special Authorization expires.
3. The Passenger Transportation Board may vary the requirements
set out in 1 above, if circumstances warrant it.
4. If an applicant needs more time to activate its vehicles, then the
applicant must make a request to the Board before the end of the 6
month activation period.
(Note: “activate” means that the applicant has submitted the documents
required to obtain a Special Authorization Vehicle Identifier to the Registrar
of Passenger Transportation.)
Notice to Registrar
Special Authorization
The Registrar must not, without direction from the Board, issue the
applicant a licence or any Special Authorization Vehicle Identifiers if the
applicant has not activated at least 50% of the vehicles within 6 months of
the date of this decision.
(Note: activated means that the applicant has submitted to the Registrar of
Passenger Transportation the documents required to obtain a Special
Authorization Vehicle Identifier.)
Passenger Directed Vehicle (PDV)
Terms & Conditions of Licence
Vehicles
Maximum Fleet Size:
2 vehicles which must be powered solely by electricity.
Vehicle Capacity (T):
The vehicle accommodates a driver and not less than 2 and not more
than 7 passengers.
Services
Service 1
Originating Area:
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Transportation of passengers may only originate from points in the City
of Kelowna, District of West Kelowna, District of Peachland and District
of Lake Country.
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Destination Area:
Transportation of passengers may terminate at any point in British
Columbia.
Return Trips:
The same passengers may only be returned from where their trip
terminates in the destination area to any point in the originating area if
the return trip is arranged by the time the originating trip terminates.
Hours of Operation:
Vehicles may only operate between the hours of 5:00 a.m. and 1:00 a.m.
Express authorizations:
(i) Vehicles must be equipped with a meter that calculates fares on a
time and distance basis.
(ii) Vehicles must be identifiable as a taxi by (a) being equipped with a
top light, or (b) displaying the word “taxi” on both sides of the vehicle
with a plainly-readable font (upper case and/or lower case), colour
that plainly contrasts with the background, and text at least 14 inches
high.
(iii) Vehicles may, from within the originating areas only, pick up
passengers who hail or flag the motor vehicle from the street.
Other
Taxi Cameras:
Taxi camera equipment may only be installed and operated in vehicles
when the licensee is in compliance with applicable taxi camera rules,
standards and orders of the Passenger Transportation Board.
Transfer of a licence: This special authorization may not be assigned or transferred
except with the approval of the Board pursuant to section 30 of the
Passenger Transportation Act.
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Appendix II
CONWAY, Dale Patrick
dba Current Taxi
Board Rule Respecting Kelowna Taxicab Rates effective November 24, 2013
Metered Rates
Proposed ($)
Initial “flag”
3.50
Additional distance (per kilometre)
2.25
Waiting time (per hour)
41.87
These rates include GST
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