Edmonton becomes first city in Canada to pass Uber-friendly bylaw

Nationalpost.com
Jan. 28, 2016
By Elise Stolte

Edmonton became the first city in Canada to pass an Uber-friendly bylaw Wednesday, leaving the California-based company scrambling to get provincially approved insurance before a March 1 deadline.

“I’m optimistic on the insurance front and quite frankly, we’re going to be doing everything we can to be in compliance by March 1,” said Uber’s general manager for Alberta, Ramit Kar.

He wouldn’t say what will happen if the company isn’t.

Alberta’s Superintendent of Insurance ruled last July that Uber’s existing policy does not adequately cover consumers. Since then, at least two insurers have said they are working on policies specific to ride-sharing. None has been approved so far.

Uber can’t get a licence under the new bylaw without provincially approved insurance, and an Uber driver caught without it could face a $5,000 fine.

Edmonton officials are hiring additional bylaw officers to ensure effective enforcement and say the the new bylaw will stand up in court if the city is forced to seek an injunction.

Despite repeated attempts from several councillors, the bylaw contains only a token minimum fare of $3.25 per ride. Council will revisit that in six months, sooner if administration sees anything they judge to be predatory pricing. The bylaw is structured such that higher minimum or a maximum fare could be implemented as soon as the following council meeting.

“I don’t think we’re throwing our cab drivers to the wolves,” said Coun. Scott McKeen, supporting the new bylaw. The taxi industry will be the only ones allowed to hail a cab on the street or by phone using the regulated rate.

“Technology can be so disruptive. I come from an industry where entire work groups disappeared,” said the former newspaper columnist. “I hope (taxi drivers) can compete like crazy against this outside entity that has shaken up our world. But that’s what technology does.”

The bylaw passed 8-4 with councillors Dave Loken, Bryan Anderson, Mike Nickel and Tony Caterina against.

Uber started operating its UberX service in Edmonton in December 2014. It uses an app to link private individuals and their personal vehicles with paying customers for a rate that’s about 30 per cent less than the regulated taxi rate.

Edmonton tried and failed to shut down Uber with a court injunction. They’ve since ticketed at least 70 drivers under the old bylaw, but those tickets are still being fought in court.

“This is a great day for Edmonton,” said Kar, hoping other jurisdictions will follow. “The leadership this city has shown to put forth Canada’s first progressive ride-sharing regulations is a great thing.”

Most taxi drivers left quietly before the final vote.

“How the taxi driver and owner will survive in this industry, we have no idea,” said Dawinder Deo, president of the Edmonton Taxi Association, speaking to drivers when the day’s outcome was obvious. “All driver owners and brokers have to sit down together.”