Features
31 jan 19

Montreal’s EV Teo Taxi stops operations

Launched to modernise the taxi industry and provide a green competitor to Uber, the electric taxis of Teo Taxi have to shut down the engine.

In most cases, the arrival of Uber in a new city provokes legislative or even physical battles to protect the taxi industry. In Montreal, on the other hand, the launch of Uber resulted in the idea of Teo Taxi, a company that envisioned both greening and modernising the taxi industry. 

Nevertheless, the drivers of Teo Taxi who arrived at work this week received the notice that Teo Taxi would no longer continue operations. No specific reasons where given but the sum of various factors explains a lot. 

Undermined Vision

Legislative constraints hindered the taxi business to be as innovative and profitable as Uber. For instance, the company could not adapt its tariffs according to traffic conditions like Uber. 

Additionally, financial factors undermined the company’s vision. Since the company drives fully on electric vehicles, the cost for maintenance turned out to be higher than anticipated and at the same time the financial support of the government on which the company started in addition to its private capital, will no longer be continued.

Noble Goal

Both factors combined make it unfeasible for the company to continue operations, despite the noble and exemplary goals of the company: driving on EVs only and modernising the taxi industry instead of remaining in the old structure and become uncompetitive with Uber. In its three years the company prevented the emission of 5,000 tonnes of greenhouse gases. 

Authored by: Fien Van den steen