Prepare for Uber in Sudbury, staff report says

Thesudburystar.com
March 22, 2016
By Mary Katherine Keown

A report going to council on Tuesday will detail how Uber and other technology-based ride-sharing programs will work in Sudbury, as well as their impacts on the local taxi culture.

"The entry of ride-sharing companies, such as Uber, Lyft, Hailo or Blancride into any market has profound impacts on traditional ground transportation systems, especially taxis," a staff report states. "It is almost certain that these or similar companies will soon begin operations in Northern Ontario."

Uber is a highly successful ride-sharing program that allows customer to use an app on their cell phones to submit a trip request, which is then routed to Uber drivers who use their own cars. It is operating in more than 50 countries and 300 cities worldwide; however, its legality has been challenged by governments and taxi companies, who allege that Uber's use of drivers who are not licensed to drive taxis is unsafe and illegal.

Uber has not set up shop yet in Sudbury, but the company posted a job ad looking for drivers last fall.

To use Uber, passengers sign up through the app with a credit card and picture.

"To request a ride, the passenger enters their destination into the app, and is provided an estimate of the fare and information about available drivers in their area," the report indicates. "When the ride is accepted, the passenger is provided an estimated time of arrival and can monitor the vehicle's approach on screen. There is no exchange of cash as financial transactions are done electronically, including payment by the passenger and payment to the driver."

The company maintains a code of conduct, to which passengers and drivers must adhere.

The city conducted extensive public consultations, as well as consultations with councillors, taxi drivers and other stakeholders. Their results, based on more than 750 survey responses from the public, suggest ride-share programs could be popular in Sudbury.

"The public values convenience, response time, cost and vehicle/driver safety as the most important factors when deciding what transportation method to use," the report states. "While the vast majority of respondents use a personal vehicle to get around, one third of those who responded use some form of rideshare or carpool on both a daily or weekly basis and three-quarters use taxi services occasionally."

The city's economic development wing also looks forward to the introduction of Uber in Sudbury.

"Economic development staff were consulted regarding the emergence of Uber into the market and they state that from a tourism perspective, Uber's focus on excellence in customer service, as well as safety, is a positive asset to Greater Sudbury's visitor offering," the report says.

Forty-five taxi drivers also took the survey. Not surprisingly, most are sour towards Uber and other similar programs.

"The vast majority, 91 per cent, believe that ride-sharing systems should be banned in Greater Sudbury," the report states. "If the city goes ahead to permit ride-sharing, that same strong majority want driver screening, licensing, fares and insurance to be regulated in the same manner for both systems. Further, the majority of industry respondents are opposed to decreases in current taxi fares and by a slim majority, favour the introduction of apps to pick up fares within the traditional taxi industry."

Sharon Flinn, who owns Lockerby Taxi, spoke to The Star in January. At the time, she said that competition is a good thing, but "it needs to be on an equal and fair playing ground. Right now, it's not."

Policies, including criminal records checks and licensing, and regulated prices are part and parcel of a taxi service, she said. Flinn was also concerned about insurance coverage for Uber drivers.

"That's the biggest hassle," Flinn told The Star. "Down in the States, where they're very popular, and across Europe, you don't need that kind of insurance. Ontario has very strict insurance regulations for commercial vehicles, and that's what they are. They're operating a business as a commercial operator."

It seems, however, that Uber is quite regulated.

"Drivers must provide proof of insurance, a safety inspection certificate for the vehicle and undergo both driving and criminal records checks before beginning to drive for the company," the city staff report indicates.

Staff is recommending that a report be drafted to frame the way Uber and any other technology-based ride-sharing program would work in Sudbury. They are asking council to find a "middle ground, which allows Uber to serve as broker for its drivers and allows the conventional taxi industry to function more like Uber." This includes all conventional methods of hailing cab, as well as mobile apps that would tap into cell phone technologies.

"That staff be directed to draft a vehicle-for-hire bylaw, which is based on the consultation results and principles, and which would level the playing field for both the taxi and ride-sharing industries, all as outlined in the report from the executive director administrative services/city clerk, dated March 8, 2016," the report indicates.