The number of cab companies in Airdrie, Alta. has more than quadrupled in the last two years. (Avacab Taxis)

City council in Airdrie, north of Calgary, has passed its first set of rules governing the city's booming taxi industry.

Cab drivers are now required to have a valid taxi licence, pass a criminal record check, and display proper signage with the company's name and phone number.

"I think it's a pretty big step for us because basically the whole bylaw is around safety of the vehicles for the residents, as well as fairness across the board for the drivers," said Kent Rupert, who works for the City of Airdrie's economic development department.

However, the bylaw does not include a cap on the number of taxis in the city, similar to one in place in Calgary, which some drivers had lobbied for.

The number of taxi companies in Airdrie has more than quadrupled in the last two years, from eight to 33.

"The competition is so high. Right now, everybody can do the same thing people do. Just buy a cab, put it on the road, put a name, and you're operating a taxi," said Lateef Kuteyi who co-owns Liberty Taxi.

"It's going to affect wages, like what you can take home. You won't be able to make enough money," he said, pointing out he's lucky if he can take home $400 per week.

But Rupert said all the competition among taxis is a good thing for consumers, and the market will determine how many cabs should be operating in the city.