Car rental Express is launching in Ottawa.
It has been in talks with Ottawa-based taxi company Cabbie.
It will allow passengers to rent cars at a discount, in an effort to lure people away from the downtown core.
It is offering a $150 per day rate and an additional $20 per week to help cover the cost of a rental car.
The ride-sharing company said it is adding another 250 vehicles for its service over the next six months.
The first car rental in Ottawa was set to start in October.
Ottawa’s taxi companies said they expect to bring in up to 600 cars per week.
They said they have heard of hundreds of car rental requests from Ottawa residents.
“We are excited about our new partnership with Express and the opportunity to partner with Ottawa’s top taxi companies,” said Sarah McKeown, president of the Ottawa taxi industry association, the CAA.
“With the increased demand for cars, we are looking forward to partnering with these top Ottawa cab companies to bring this service to Ottawa.”
The ride service will also have an online option for people to pick up their own cars.
“It will be an exciting and competitive option for Ottawa commuters,” said Express CEO and co-founder Mike O’Brien.
“If you’re a resident of Ottawa, we think it’s a great fit for you.”
O’Briens company is one of the few ride-share services in the city, and it is expected to have a big impact on Ottawa’s transportation options.
It also comes on the heels of a surge in demand for taxis.
Ottawa is now the third-busiest city in Canada, behind Toronto and Vancouver, according to the latest census data.
A similar surge has been seen in the surrounding suburbs, with some residents worried about the future of the local taxi industry.
Some cab drivers are also worried about competition from ride-hailing services.
“This is a very competitive market right now,” said Cabbiero, a spokesman for the Ottawa Taxi Association.
“So there is a lot of uncertainty, and we are hoping to work with all of the operators.”
He said the taxi companies have been in discussions with the Ride-Hailing Industry Association, the Association of Certified Car Rental Agents, and others to make their plans clearer.
He said he expects the new ride service to begin service in the coming months.