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Uber may refuse to operate in Calgary, but new rules for the taxi industry have triggered an unprecedented fare war among cab companies now scrambling to lower rates.

Associated Cab and Delta Cab were the first to announce lower fares after bylaw changes came into effect Monday. The rules allow Calgary operators to charge their own rates — rather than those set by the city — for the first time ever.

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Checker Yellow Cab said it will also lower rates, though it hasn’t yet decided by how much, while Mayfair Taxi said it was reviewing its options, which may include a rate drop.

“By reducing the rate, I think we’ll get more passengers using taxi,” said Roger Richard, president of Associated Cab, which has seen its business decline by 20 to 25 per cent since the economic downturn set in.

Associated Cab said it will lower fares in its 600 taxis and limousines by 12 per cent beginning April 11, though it will take about five days to change the meters for its entire fleet.