Illegal taxis that are using carpooling sites to cash in on Ottawa's transit strike could soon face fines costing hundreds of dollars.

Linda Anderson, manager of bylaw enforcement, said the city started monitoring carpooling sites Monday for people who are offering rides in exchange for a fare per time or distance, which is illegal under a municipal bylaw.

The city plans to start cracking down, and fines for the infraction are in the $300 to $400 range.

Anderson said it's a matter of public safety.

"Taking a ride with a stranger paying a fare is not the smartest thing to do — [it] could be dangerous," she said, adding that customers may not know whether the driver has a valid driver's licence, insurance or a criminal record, or whether the car is mechanically sound.

The city has been encouraging Ottawa residents to use carpooling websites since the transit strike began on Dec. 10.

About 2,300 transit drivers, dispatchers and maintenance workers have been unable to reach a contract agreement with the city. Their main disagreement is over scheduling.

Anderson said if the city is able to track down any of the illegal taxis advertising on local carpooling websites and can confirm that they have charged someone for a ride, the owners could face fines.

Taxi drivers said they too will be monitoring the carpooling sites.

Jacques Labaki, a spokesman for the city's taxi drivers union and a driver with Capital Taxi, said taxi drivers themselves intend to call some of the numbers posted in the ads.

"With the help of the city, we're going to try to put an end for those people," he said.

But Kenton Winn, a student at Algonquin College who regularly uses illegal taxis, said right now they're one of his few transportation options.

"Other taxis are really busy," he said, adding that "underground" taxis are more available because not everyone knows about them.

He first got in contact with such a taxi through friends, and often uses one to get downtown from his Algonquin College residence, near Baseline Road and Woodroffe Avenue.

"Its cheaper and they're quite reliable," he said, adding that he saves $3 to $4 each way.

Downtown lots packed full

Illegal taxis aren't the only businesses cashing in on the strike. Downtown parking lots are also seeing their business boom.

Since the strike started, there have been many more people willing to pay $18 a day to park at the Imperial Parking lot on Slater Street near Elgin Street than the plot of asphalt can accommodate.

"It's been absolutely packed every single day," attendant Nick Dubus said Monday. "Even people who want to stay five minutes can't do it because there is no room. It's terrible."

He added that, almost inevitably, people who are turned away will ask for suggestions about where to park, but other lots downtown are also full.

Mickey Tsggay, who also works at the lot, said sometimes people hover at the lot for up to two hours, hoping to get a spot.

Among those circling for a place to park Monday was Steve Argiropoulos, a caterer who has been having trouble finding places to stop so he can deliver his product.

"It's not fun, I feel sorry for everybody. Mostly myself," he said.

The city has loosened rules for street parking during the strike, allowing drivers to park all day in one-hour to three-hour unmetered parking, but spots are still scarce.

On the other hand, parking was available Monday to those who didn't mind walking a few blocks over slippery sidewalks in the rain.

The extra city lot opened last week at Lebreton Flats by the City of Ottawa to provide 150 more parking spaces during the strike still had many spaces available Monday at a rate of $10 per day.

Some non-transportation businesses are also taking advantage of the strike. The downtown Fairmont Château Laurier hotel is hoping to tap into the market of frustrated commuters.

It is offering a special "beat the traffic" rate of $99 per night in the hopes of persuading people to stay close to work instead of fighting the gridlock to get home.