Lack of understanding on Uber

torontosun.com
April 8, 2016
By Tim Hudak

City staff have delivered a sensible and balanced set of rules for Uber and other ridesharing services that, if implemented, will be good news for consumers.

The only thing standing in the way of more choice, more convenience and greater affordability for passengers is stale politicians who still don't get it. Unfortunately, there are many of them on city council and at Queen's Park.

A few hours after Toronto's proposed rules were unveiled, I was part of an Uberpool -- a service offered by Uber that allows multiple passengers to share a ride and significantly reduce their costs. I was pooling with a university student who wants to dedicate her life to helping children with autism. She told me she likes Uberpool because it gets her to her destination on time, saves her money and, most importantly, gets cars off the road.

The taxi industry will only be happy if Uber is shut down entirely and that just isn't going to happen, she told me. I only wish that some of our politicians would be as clear-headed and honest.

Credit to Mayor John Tory and city staff - they got the big stuff right.

The city will require adequate insurance for the driver and car in case of accident. It will require Uber to ensure its drivers have driving and criminal record checks. The municipality will be able to inspect these records on demand and hold the company accountable.

Most Uber drivers work part time earning some extra cash beyond their regular jobs to help with their kids' tuition or pay down the mortgage faster. The city report recognizes this by resisting the temptation to put the drivers through a regulatory wringer that would otherwise cause them to throw up their hands and say, "Why bother." Instead, they put the burden on the company, Uber, and hold it responsible through licensing fees and reporting requirements to make sure rules are followed.

The draft rules aren't perfect. More work needs to be done. Certain outdated rules need to be tossed out the window to help the taxi industry compete. The city should also be careful not to sideswipe promising Ontario startup companies like RideCo who want to compete with Uber. A $20,000 application fee and daily reporting requirements will break the back of a company that has a knack for getting more people to carpool in transportation-deprived neighbourhoods like Liberty Village.

There are two challenges ahead. First, we need to call out the outdated Toronto politicians who immediately opposed these changes. Tell them to catch up with their constituents who are overwhelmingly voting with their smartphones for Uber - a million rides a month and growing in Ontario.

The greater challenge will be at the provincial level. While Toronto is the biggest battlefield in the Uber vs. taxi war, it isn't the only one. Mississauga and Brampton are considering a very heavy regulatory approach that will effectively ban Uber. Where will that leave passengers and drivers who are moving between these major cities? The best solution is clear and consistent provincewide rules instead of a patchwork of municipal solutions. The province also needs to ensure a competitive marketplace of insurance products for drivers.

But if Premier Kathleen Wynne won't demonstrate that leadership, at least John Tory is showing the way.