Taxi jab: This businessman has started his own Corner Brook ride service to compete with cabs

A Corner Brook luxury car rental company is now offering rides around town with a system that has similarities to ride-hailing services like Uber, with its owner pitching that he can do it at half the cost of a taxi.

Devon Reid, owner of Island Exotics car rentals, launched a ride service in Corner Brook last week.

He said it was driven by a desire to see a cheaper alternative for transportation around the Humber Valley area, and to build an alternative revenue stream for the rental vehicles on his lot.

"It shouldn't cost you $22 to get a ride to the grocery store in order to pick up food, right? And then have to get another ride back," Reid told CBC News.

"We're 50 to 60 per cent cheaper than the local other services that are offering rides, and we have a few electric vehicles on staff to kind of keep the operational cost low."

Reid's operation differs from a taxi or a ride-hailing service because of its classification.

Each ride is designated as a chauffeur service, which allows the operation to work outside the rules and city regulations that a taxi or ride-hailing service must follow.

CBC News asked the City of Corner Brook for an interview about the new ride service. Communications manager Ryan Butt said city staff are waiting to have further discussions with Reid about his business model, and wouldn't provide a statement or interview.

Reid said customers can book rides online or by text message to receive exactly how much the ride will cost up front. For example, he said a ride from Broadway to West Street in Corner Brook would cost about $5.50 in one of his vehicles, but would cost nearly $11 in a taxi.

He described the rides as something different than a taxi, saying they use newer, electric vehicles that are cleaned after each ride. He said electric vehicles will keep rates for customers down because they don't need gas.

He said his rental business increased its insurance from $1 million in liability to $2 million for sufficient coverage. He added drivers have Class 4 licences to be able to transport people.

"The reason why we went for ride service and chauffeur service versus cab was mainly due to the operating cost of cab," he said.

"So in order to keep our prices significantly less…[we went] under chauffeur servicing," he said. " The legality's a little different."

Joe Vokey, a cab driver in Corner Brook for more than 45 years, questioned how Reid will be able to make a profit while keeping people safe.

He said his vehicle insurance costs about $6,000 a year to protect himself and his passengers as part of a regulated taxi company in the city.

"We're insured to cover you and me and whoever else is involved…If you are injured, we will cover it. If someone hit you in these things that are driving around, only the driver is covered as far as I know," Vokey said.

"You're [also] looking at repairs, you're looking at gas every day, in between $50 to $80 a day. How are you going to afford that there? And they're going to do it for 50 per cent [less]? I don't know how they're going to do it."

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