Calgary United Cabs slash fares by 20% to undercut competition

One Calgary taxi company is going one step further to attract business.

"We have decided that since this war started we are going to beat all of the competitors,"said Naeem Chaudhry, who manages Calgary United Cabs.

The driver-owned company is undercutting all the competition by slashing its rates by 20 per cent a $4 saving on a $20 trip.

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Chaudhry said drivers will be slapping stickers on their windows, advertising their new price.

"It's a competition."

Calgary United Cabs drivers supportprice drop

The taxi war began brewing last week after changes were made to the city's livery transport bylaw allowing cab operators to set their own fares.

The old minimum rate of $3.80 for the first 120 metres or any portion of a trip, is now the maximum rate.

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Associated and Delta were the first to drop their fares by 12 to 15 per cent, resulting in backlash from some taxi drivers who say they're going to have pay for the price drop out of their own pockets. They were followed by Checker Yellow Cabs and Mayfair Taxi.

"I can totally understand how the drivers are feeling right now," said Chaudhry, who has been involved in the taxi industry for more than 20 years.

He said Calgary United Cabs driversare not facing the same challengeas their peers at Associated Cabs, for example, because they don't pay as much for insurance and dispatch fees.

"We are already charging almost 30 per cent less than other cab companies to our drivers."

Chaudhrysaiddriversvoted in favour of the price drop over the weekend.

With only 130 vehiclesin its fleet Calgary United Cabs is still a small fry in the city.ButChaudhrydoesn't expect that to last.

Since announcing its rate drop, he's been flooded with calls from drivers working for other companiesinquiring about jumping ship.