Calgary wants Uber to cover legal, enforcement bill as relaunch nears

CalgaryHerald.com
Nov. 30, 2016
Annalise Klingbeil

Rideshare giant Uber’s eagerly awaited Calgary re-launch is scheduled for Dec. 6, after the city agreed Wednesday afternoon to rescind a court injunction handed down to Uber drivers last November.

City officials said Wednesday morning they would keep the order stopping Uber drivers from operating in place until the U.S.-based company agreed to discuss paying the city back for the cost of its enforcement operation that targeted Uber drivers last year.

But, the city announced Wednesday afternoon, it had asked the Court of Queen’s Bench to lift the injunction and a spokeswoman said in a statement “both parties have agreed to the Order to lift the injunction, and have agreed to leave the issue of court costs to be discussed at a later date.”

Earlier in the day, Ryan Jestin, the city’s director of community standards, said a lawyer representing Uber drivers asked the city to lift the injunction on Tuesday, after city council approved rideshare bylaw tweaks on Monday that Uber is willing to work under.

“We responded to them (Tuesday) night saying yes, we’re prepared to lift the injunction, but we need to discuss the costs associated with that injunction,” Jestin said.

After Uber first launched in Calgary in October 2015, without requiring its drivers to obtain the appropriate insurance or driver’s licence, the city embarked on a pricey undercover enforcement operation to catch Uber drivers allegedly breaking Calgary’s livery transport bylaws.

Last month, following repeated unsuccessful media and Freedom of Information requests, the city told Postmedia it paid $21,800 to three private investigator firms (Xpera Risk Mitigation and Investigation, Graziano Investigation Services and MDSI) for the undercover enforcement operation and Nov. 2015 injunction application against Uber drivers.

The city wants Uber to cover that nearly $22,000 tab.

“Obviously, we had a pretty significant operation when we charged the drivers a year ago,” Jestin said.

“Our plan, of course, is we would ask for those costs to be covered by Uber, as a result.”

When asked if Uber would agree to pay the city’s costs Ramit Kar, the Western Canada general manager at Uber, said Wednesday morning the company is in “continuing discussions on all of the legal matters.”

Roger Richard, Associated Cab president, said in addition to reimbursing the city for their undercover operation, he believes Uber should be on the hook for the trips taxi drivers lost when Uber operated in Calgary last fall.

“They operated for one month illegally, they took away business from legal taxi and limousine operators in the city. They should reimburse that,” he said.

Kar stood on the steps of city hall Wednesday morning, alongside Uber driver Kenneth Javaid, to announce Uber’s return to city streets after the company abandoned the Calgary market in February when council passed a new rideshare bylaw the company called unworkable.

“After months and months of dialogue with the city to allow Uber to come back to Calgary, the bylaw that passed on Monday will allow us to do that,” Kar said, noting the bylaw amendments are designed to make it easier for part-time drivers to work.

“I’m very excited again that Uber is coming back in Calgary,” said Javaid, who was laid off from a job in the oil and gas sector last year.