Edmonton should deregulate fares to help taxis compete with Uber: city officials

City staff make 11 recommendations in advance of council vote next week on vehicle-for-hire bylaw

CBC.ca
Jan. 21, 2016
By Laura Osman

City officials say taxi fares for pre-arranged trips should be deregulated to help the embattled taxi industry compete with Uber once the ride-hailing company is legalized by city council.

The recommendation is one of 11 included in a report to city council in advance of its vote to amend the vehicle-for-hire bylaw, which would accommodate the new ride service.

"We believe the bylaw, with recommended amendments, will modernize the vehicle-for-hire bylaw and establish a regulatory framework under which both the taxi industry and private transportation providers can co-exist," said Peter Ohm, Edmonton's branch manager of urban planning and development.

The city consulted with private and corporate transportation providers, as well as customers.

If council adopts the idea, fares would be regulated only for rides hailed on the side of the street or at cab stands. Companies would be able to set their own fares for prearranged rides.

Council has been mulling over how to deal with Uber since it started operating illegally more than a year ago. City officials said the company flouts the existing rules for vehicle for hire services.

"The discussion on and the content of the bylaw has been contentious," Ohm said. "We expect the information contained in the report will spark further public discussion."

Several councillors have signalled their intention to finally pass changes to the bylaw to legalize Uber next Tuesday, rather than draw the debate out any further.

"It's not going to make everyone happy, but I think it's the right steps to make sure that we can have a bylaw that's proper, that's enforceable, but it also provides choice for Edmontonians," said Andrew Knack, the city councillor for Ward 1.

The report also includes a recommendation to license Uber drivers differently than traditional cab companies, charging a licensing fee to Uber and its riders rather than individual drivers.

Uber would pay a $50,000 annual fee, and customers would pay six cents additional per ride. The money would be used to cover increased costs to the city's licensing department.

Additionally, Uber will pay a $20,000 accessibility surcharge to ensure it has enough cars on the road.

"The bylaw, as we read it, is really tilted towards companies like Uber," said Pascal Ryffel, a spokesperson for Driving for Equality Campaign, Alberta Taxi Group.

Ryffel cited the $50,000 annual fee for private transportation providers, saying it does little to level the playing field between taxi companies and private groups. He said the fee will be "chump change" for Uber.

City staff have also given council several other fee and fare options to consider.

A written statement from Uber said the company supports Edmonton's report because it "creates smart rules to regulate ride-sharing."

"We are cautiously optimistic that Edmonton could become the first Canadian city to approve a workable regulatory framework for ride-sharing," the statement said. "We appreciate the openness city staff have shown to meet with all stakeholders and we look forward to continued collaboration with the city."

Even if council makes a final decision, the city won't license Uber drivers without proof of adequate insurance. Currently, only commercial insurance would apply.

Uber and auto insurer Intact have proposed an insurance plan that would better suit the needs of the company's part-time drivers, but it has not yet been approved by the provincial government.

Aviva Insurance has also announced plans for a new insurance product for Uber drivers, but it hasn't been approved in Alberta.

Council will debate the issue on Tuesday.