The Canadian Taxi Wars, 1925-1950

Abstract

Between 1925 and 1950 most Canadian cities experienced a taxi war during which fares and drivers' incomes plum meted. These wars bad their origin in the low barriers to entry into the industry, as it became clear in the late 1920's that motor cabs did not need private concessions, special-built cabs, telephone switchboards and taxine ters to make a profit. The older firms that bad made these investments were able by 1950 to persuade the larger Canadian cities - including Winnipeg and Vancouver, the two featured here - to introduce the present regulatory regime. The imposition of uniform fares, of taximeters, of minimum wages, of liability insurance, as well as limits on entry into the industry (through the medallion system) ended the taxi wars. The industry thereafter operated in a less chaotic, more ethical way. Yet the new regime also reduced the industry's flexibility, making it less helpful in moving the urban masses.