Hamilton may seek injunction against Uber service

TheSpec.com
Feb. 2, 2016
Steve Arnold

City council will be asked next week to take the fight against the Uber ride-hailing app to court.

In a motion to be presented at the Feb. 10 council meeting, Coun. Sam Merulla asks that city legal staff be sent to court to get an injunction stopping the service until proper licensing rules can be developed.

"We have to develop a plan to address this business," Merulla said. "The status quo is just not acceptable."

"These ride-sharing programs are here to stay," he added. "We're saying they either have to conform to public safety policies or we are going to take a stand against them."

Uber, which arrived in Hamilton last July, is a ride-hailing service in which passengers use a cellphone app to find nearby drivers rather than calling a taxi.

Fares can be up to a third cheaper than a licensed cab. Taxi companies say that's unfair.

"They're not licensed but they're performing exactly the same service we are," said Anthony Rizzuto, vice-president of Hamilton's Blue Line taxi company. "I think the city really needs to be proactive here."

Where taxis are subject to safety inspections, insurance requirements and records checks of drivers, Uber operates without any of that.

Rizzuto said since Uber started operating in Hamilton his drivers are reporting a 30 per cent drop in business.

In San Francisco, where Uber began, the largest taxi company in the city sought creditor protection early in January citing changes in its business.

For Merulla and Mayor Fred Eisenberger the issue is one of public safety.

Merulla said a passenger injured in an accident while riding in an uninsured Uber vehicle could be left with no protection at all.

Hamilton licenses 447 taxis, two taxi brokers and 1,200 drivers. The city has been trying to enforce its bylaw by handing out 35 bylaw infraction tickets to Uber drivers — the citations carry a fine of $305 for operating an unlicensed taxi — but the effect has been limited.

"We've been trying to enforce our bylaw because we want them to cease and desist until we get an appropriate bylaw in place," Eisenberger said. "There is an opportunity here, and we have to do something because enforcement is not doing what we need it to."

Other cities have also been wrestling with ways to regulate the service. In Alberta, for example, Edmonton successfully licensed Uber vehicles and drivers, while Calgary has won an interim injunction against the service while a bylaw is prepared.

The Edmonton bylaw takes effect March 1 and includes two licences: one for firms called private transportation providers and the other for taxis.

In Montreal on Tuesday, Quebec's taxi industry went to court to seek a permanent injunction against Uber, while in Ottawa about 200 taxi drivers gathered on Parliament Hill to ask Prime Minister Justin Trudeau to shut down Uber operations. The Competition Bureau has also said local regulations on the taxi industry need to be overhauled to deal with new competition.

Ontario's insurance regulator has also approved coverage for Uber drivers through Aviva Canada, acting even before the legislature decides whether such services are legal.

In an email, Uber spokesperson Susie Heath said, as seen in court rulings in Ontario and Alberta, "ride sharing is a new model distinct from taxi."

She said the company has been working with officials in Hamilton and across Canada to update rules for ride sharing.

"We look forward to continuing our work with officials in Hamilton to modernize regulations to encourage innovation, put people first and create safe, reliable and affordable transportation options," Heath said.