Competition Bureau launches new publication: The Competition Advocate

Commentary: Taxi industry’s emerging digital dispatch services benefit consumers

November 25, 2014 — OTTAWA, ON — Competition Bureau

The Competition Bureau today launched a new publication entitled The Competition Advocate, which will be published periodically. This short commentary will offer the Bureau’s views on industries that may benefit from increased competition.

The first issue of The Competition Advocate is focused on the taxi industry’s digital dispatch services. In recent years, the taxi industry has witnessed the emergence of innovative business models that make use of software applications to efficiently connect passengers with available drivers. These services, known as digital dispatch services, allow customers to use their smartphones to locate nearby drivers, conveniently order their services, and arrange payment.

The Bureau is of the view that these innovative business models have the potential to offer important benefits to consumers through enhanced competition, including lower prices, greater convenience and better service quality. While the Bureau recognizes that ridesharing services may raise other issues, the focus of the Bureau’s commentary is on the Bureau’s area of expertise: assessing the role that competitive forces play in market outcomes.

Quick facts

  • As part of its mandate, the Bureau participates in a wide range of activities to promote and advocate the benefits of a competitive marketplace, both in Canada and abroad.
  • Greater competition generally leads to lower prices for consumers, as well as more consumer choice, a wider range of service options and increased innovation.

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