Passenger Transportation Regulation Changes - Information for Municipalities

Legal and regulatory changes to modernize the taxi industry and introduce transportation network services (TNS) have impacted municipalities' decision making in relation to Passenger Directed Vehicles (PDVs). These changes came into effect on September 16, 2019.

Municipal Authority

Municipalities are encouraged to seek independent legal advice respecting how these new rules impact them.

  • Municipalities retain their authority to:
    • Issue business licences
    • Set business licence requirements
    • Regulate through street and traffic bylaws
    • Examples of areas that municipalities may regulate in relation to PDVs include:
      • taxi stand locations
      • age of fleet
      • and standard of fleet
  • The Passenger Transportation Board has sole authority with respect to the supply and operating area for PDVs. Municipalities may not:
    • Refuse to issue a business licence to operate a PDV for the sole reason that the person holds a business licence issued by another municipality
    • Prohibit PDVs from operating in the municipality
    • Regulate the number of PDVs that may be operated
    • Issue municipal chauffeur’s permits to taxis and TNS Drivers


As of September 16, 2019, municipal bylaws that

  • regulated the number of PDVs allowed to operate within a municipality are no longer in effect
  • prohibited PDVs from operating in a municipality, including bylaws that refused a business licence because the person already held a licence to operate a vehicle issued by another municipality, are no longer in effect

What changed with respect to the municipal chauffeur’s permit for PDV taxi drivers?

Business Licences

As of September 16, 2019, municipalities have the ability to establish

  • One set of business licence requirements for taxi fleets and a different set of requirements for ride-hailing
  • Different street and traffic rules for taxis and for ride-hailing under their authority in relation to streets and traffic

Operating Boundaries

The Passenger Transportation Act gives the Passenger Transportation Board sole jurisdiction over boundaries. 

TNS applications are reviewed by the Board. Municipalities (or any interested party) have the option to make a submission to the Board during the application stage to demonstrate support or concern about a particular application, if any.

Can taxis that are currently limited to one area by the Passenger Transportation Board now operate in all areas?

  • Operators of passenger directed vehicles (PDVs) can apply to the Board for a licence to work in certain areas. If approved, a PDV licence would authorize an operator to work (i.e., pick up passengers) in those areas
  • If taxis are licensed to operate in multiple municipalities, the companies and operators will be expected to hold business licences in each municipality that requires them and to follow the local bylaws

Can taxis and ride-hailing vehicles pick up a fare anywhere they’ve dropped off a passenger?

Operators of passenger directed vehicles can apply to the Board for a licence to work in certain areas; if approved, a licence would authorize an operator to work (i.e., pick up passengers) in certain areas.

Existing Operators

Holders of existing licences can continue to operate under their current licences unless they want to change their area of operation or fleet size in which case they can apply to the Board for an amendment to their licence.