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Ford government to pay for Staples retrofit as retailer looks to 'monetize' ServiceOntario
(toronto.citynews.ca)
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Service Ontario already was private, and always has been. I don't approve of this move, but only because it corporatizes a small business model.
I took a little look into this and based on that I think you are correct that Service Ontario was already significantly privatized prior to this move (which I'll admit I wasn't aware of), but it has not always been completely private.
Here are excerpts from a 2014 post from OPSEU (https://opseu.org/information/general/serviceontario-the-straight-facts/9956/):
You're right, I'm guilty of oversimplification based on out of date information. I last worked in that field 20 years ago. I should have stuck to the still-accurate point that privatization has long been prevalent when it comes to licensing in Ontario, so it's not a new thing this government is doing. Driver testing was provincially-run, but it was fully privatized in the early 2000s. Thanks for the fact-checking.