“Competition is good.” This was the opinion shared by councillor Conrad Read in the wake of city council’s recent decision to deny a request from two local taxi companies to limit any future taxi businesses from opening in Meadow Lake. The decision to deny the request was made during council’s regular meeting held Monday (March 9). It was brought to the table by councillor Mauri Young and seconded by councillor Ron Dishko.

“Near the end of February, administration received a letter from ViralKumar Patel of Mr. Taxi Ltd. and an email from Sukhman Singh of Meadow City Cab requesting council consider imposing a moratorium limiting the number of taxi service business licenses issued within the city to two,” explained city clerk Kaila Lefort in her official recommendation to council. “The request seeks to prevent additional taxi businesses from entering the local market until such time as population growth and economic activity increase to a level that would reasonably support a third business. At present, two businesses hold licenses under the classification of taxi services.”

In his letter to the city, Patel said he understands the importance of fostering a competitive business environment. “However, we are writing to express significant concern regarding the potential introduction of a third taxi company into our small community,” he noted. “Currently, Meadow Lake is served by two established taxi companies, and we believe the market in a town of our size is already at saturation point.” Patel went on to say adding a third taxi company would create an unstable environment for all involved, and result in difficulties pertaining to driver shortages, insufficient demand and dilution of business. “We respectfully request Meadow Lake city council consider implementing a moratorium on new tax company licences until such a time the population and economic activity of our town can genuinely support additional operators without jeopardizing existing services,” he added.

Singh, meanwhile, echoed much of this in his email to city manager Amanda Flasch. “As Meadow Lake is a small city with a limited population, the current market demand can reasonably support only a small number of taxi operators,” he said. “Issuing additional tax licences beyond two companies may lead to market over saturation. In small communities, this can negatively affect business sustainability, reduce service quality and create financial strain that makes it difficult for operators to maintain vehicles, staffing standards and reliable service for residents.”

Lefort, however, recommended council evaluate several key implications such as business needs, setting a precedent, public perception and more. “While The Cities Act authorizes council to limit the number of businesses operating under a specific classification, council must consider whether doing so serves the broader interests of the community,” she stated. “Imposing a cap on taxi businesses would create a precedent for other business sectors to request similar restrictions. For example, businesses such as lawn care, snow removal, childcare or other competitive local businesses may seek similar protections. Establishing such a precedent could place council in a challenging position when attempting to maintain fairness and consistency across the board.” She also said limiting the number of taxi businesses reduces the competitive nature, which could result in higher fare costs for clients. “Council should ensure any restriction is grounded in the interest of the public, rather than sole economic protection of existing businesses,” Lefort continued. “Perception may be council is limiting entrepreneurship. Residents may view the cap as anti-competitive or unfair to future applicants.”

Young said she agreed with Lefort’s recommendation. “I think this (denying the request) is the right thing to do,” added councillor Marty Bishop. “If word gets out we’re putting moratoriums on potential businesses coming to town, it could have a detrimental impact on people who want to do business here.” Read agreed. “This is a good recommendation,” he said.