Uber is set to begin selling luxury cabs in Toronto, a move that could create an even more competitive market for the company, a report says.
The taxi-hailing service, which operates in more than 200 cities around the world, is expected to begin leasing luxury cabbies to drivers at some point.
The report, commissioned by Toronto-based startup Torontonian Escorts, said the service will not replace traditional taxis, but it will allow the taxi industry to compete more effectively.
Uber is expected be able to negotiate lower rates for the rides it gives to drivers and the ride-sharing service will offer an alternative to private car service.
The service is expected “to attract and retain a large number of new drivers,” according to the report, which was co-written by the company’s former president and chief executive officer, Justin O’Leary.
The ride-hail service, based in San Francisco, has been around since 2014, but Uber is the largest driver-sharing company in the U.S. and has grown quickly since then.
The company has more than 7,500 drivers, many of whom are drivers with Uber.
Toronto has been a hotbed of taxi-riding in recent years.
There are currently around 2,700 taxis in the city, according to city statistics.
Uber and other ride-share services, such as Lyft and Sidecar, have also been growing rapidly in Toronto.
In October, the city approved the expansion of its city taxi fleet to allow the company to lease taxis from licensed drivers.
Taxi drivers and drivers of other ride services in the Toronto area have been protesting against the city’s decision, and Uber has also been facing a lawsuit alleging it has discriminated against drivers of ride-services.
Torontonians have largely been happy with Uber, as the company has not only helped the city attract new business, but also helped drive down the citywide taxi fleet.
Uber has not yet announced plans for a launch in Toronto but has not been shy about announcing plans for expansion in the future.
The city will soon be able buy taxis through a $20-million pilot program that Uber launched in April.
The government has also approved the creation of a private taxi commission to help oversee the operation of the program.
The program will allow Uber to hire drivers for as little as $2 per hour, and it will pay for its own fleet.