Taxi businesses struggling under pandemic economy

St. John’s cab companies & drivers suffering under plummeted demand, virus fears

By: James Lloyd

ST. JOHN’S - “The wound this time might be a mortal one,” said Derek Hayter, manager at Newfound Cabs in St. John’s. The economic impact of the provincial government’s proactive approach to preventing the spread of COVID-19 is being felt by individuals and businesses throughout the province.

As Newfoundlander’s retreat into their homes, taxi companies are among the first to be the hardest hit. Speaking to VOCM, Hayter described a dispatch office normally bustling with three dispatchers and six more additional staff, now locked with a lone dispatcher inside who spends more time watching the news than receiving calls.

As public health officials stress the importance of remaining at home unless necessary, the company’s call volume has dropped 75%. The company has removed insurance from many of its cars to save money, and those cars’ commission-based drivers have nothing to fall back on while they wait for financial assistance from the federal government.

“There’s people here rolling up change and taking it to the bank,” he said, “They can hold on for weeks, maybe, not months.”

On Wednesday, finance minister Bill Morneau announced the government’s target of April 6 for the dissemination of emergency funds to Canadians whose incomes have stalled due to the pandemic.

These funds apply equally to wage earners and contract workers, who constitute the majority of Newfound Cabs staff.

Newfound Cabs Inc. is owned by Albert Newell, who has been in the taxi industry for over 35 years. Newell told CBC that many of his drivers are worried about catching the virus from strangers, whose travel history and health status is unknown.

With basic items like hand sanitizer and sterilizing wipes now in short supply, drivers have designated the front seat out of bounds, and rely on cracked windows to ensure adequate air circulation. The company has also stepped up cleaning measures at its wash bay.

“It’s a different world.”

Cab companies play a vital role for many Newfoundlanders, who rely on their services for obtaining essential items like food and medicine, or for serving as the designated driver when a friend or family member is not available. “It would be a heartbreaking situation if this continued for three months,”

Newell said. “It won’t be long until I folds.”