A pilot ridesharing programme has been approved, while taxi fares have been increased for the first time in a decade.

Wayne Furbert, the Minister of Transport, announced the fare increase and the initiative in the House of Assembly yesterday.

The rate increase is 15 per cent for most rides, short of the of 20 per cent cabbies had been demanding.

A total of 150 rideshare permits have been authorised for use during a one-year pilot.

The Bermuda Taxi Owners and Operators Association has staged protests against government inaction in implementing changes demanded.

Mr Furbert said: “Modernisation is necessary if we are to be a successful tourism jurisdiction and is pivotal for advancing transportation infrastructure and systems.

“By embracing modern technologies and practices, we can enhance efficiency, safety and sustainability across all modes of transportation.”

The rate-one mileage initial charge will increase from $5.15 to $5.93 and for each subsequent one-fifth of a mile or part thereof will increase from $0.55 to $0.64.

For rate two, the waiting time for the first five minutes before the start of journey will remain free and for each subsequent period of three minutes will increase from $1.60 to $1.84.

Mr Furbert also announced a change in the hours that rate three becomes applicable.

The rate-three 25 per cent surcharge that kicks in between midnight and 6am for up to four passengers will now be charged from 10pm to 6am.

The rate-three 50 per cent surcharge for midnight and 6am rides on public holidays with five to seven passengers will now start at 10am.

Mr Furbert said: “The Cabinet has authorised the grant of a maximum of 150 new permits to be known as rideshare permits.

“This permit, granted to the holder of a Public Service Vehicle licence, will come with a nominal fee of $1,000. The rideshare permit will be easily identifiable through a designated logo affixed to the vehicle's windscreen, signifying compliance with established guidelines.

“Moreover, as the purpose of this change is to ensure additional transportation capacity during peak times, a rideshare-permitted vehicle will be permitted to operate daily from April 1 through September 30.

“During the rest of the year, rideshare vehicles will be permitted on weekends, starting Friday, and public holidays.

“One crucial condition of the rideshare permit is that permit holders are only allowed to be dispatched through an online platform, ensuring a controlled and orderly ridesharing service. It is our intention to put this programme in place for a one-year pilot period so that adjustments can be made to ensure that we enhance the transportation.”

The initiative will be under the oversight of the Public Service Vehicles Licensing Board. Legislation will be revised to recognise and regulate ridesharing as a legitimate mode of transportation, aligning it with existing regulations governing public service vehicles.

No mention was made of the implementation of a central dispatch service to increase efficiency of service, a move industry representatives have called for in the past.

Mr Furbert announced that tour rates for sightseeing will also increase.

Fees for four-seater taxis carrying one to four passengers will increase from $50 to $60. A seven-seater with one to four passengers will go from $50 to $60 and with five to seven passengers from $70 to $85.

Susan Jackson, the opposition MP, asked whether there would be a ridesharing app. Mr Furbert said each of the four dispatch companies will use their own apps.

She asked if the industry had been consulted on the programme, to which he replied it had.

The Bermuda Taxi Owners and Operators Association has been approached for comment.