Toronto has ‘caved to Uber’ with proposed new rules, councillor says
Proposed new rules also create a separate licensing category for companies such as Uber.

thestar.com
April 7, 2016
By David Rider

Toronto’s long-awaited plan to regulate Uber alongside taxis is being branded as a “capitulation” to the American tech company and a recipe for destruction of the city’s cab industry.

“Instead of levelling the playing field we've dropped the floor - and we've completely caved to Uber, and I'm shocked by it,” Councillor Janet Davis, a veteran taxi reform advocate, said after release of draft regulations developed by city licensing staff.

“It says to me Uber's arrogance and complete disregard for city regulation to date has been completely successful.”

Taxi operators would pay higher fees, and face different requirements for police driver checks and vehicle inspections, than “private transportation companies” using a smartphone app to connect passengers with drivers in their own private vehicles.

City staff attempts to level the playing field include scrapping a mandatory 17-day driver training course as well as requirements that cabs have snow tires in winter and that drivers be able to speak English and have CPR training.

Mayor John Tory, currently in Asia on a trade mission, issued a statement supporting the plan to loosen some taxi restrictions but to impose fewer rules and fees on UberX drivers.

“Toronto has an opportunity to put the interests of its residents first and create a regulatory environment that protects drivers and allows companies to fairly compete,” Tory said.

But his licensing committee chair, Councillor Cesar Palacio, panned the proposed regulations as being too favourable to Uber, at the taxi industry’s expense.

His committee, which will debate the report next week, will aim to “level the playing field” for police checks, vehicle inspections and the disparity in licensing fees, he said.

Unless the licensing committee shelves the report, however, city council will have final say at its meeting next month.

Highlights of the plan include:

• Taxi drivers would pay a $290 annual‎ licensing fee. UberX and similar services would each pay $20,000 one-time fee while drivers would pay a $10 annual fee and 20 cents per trip.
• Taxis would require twice-yearly inspections at a city garage. UberX cars would require only a yearly inspection and Ministry of Transportation safety standards certificate.
• Taxi drivers would still be required to submit a police background check, while UberX drivers would submit their checks to the company, subject to presentation upon demand by the city.
• Cab and UberX drivers would all require $2 million collision and passenger hazard insurance coverage. The city says it will be up to the province to determine what kind of insurance is OK.
• A cap on the total number of cabs, with mostly regulated fares, but not on the number of UberX and similar-service cars or limousines, which would set their own fees, including Uber’s controversial “surge pricing” during peak-demand periods.
• Taxis would be the only cars allowed to pick up street hails. However, unlike some other Canadian cities, Toronto would let Uber pick up phone customers.

Uber, which has a Toronto licensed taxi brokerage alongside its private-vehicle UberX service, started operating in the city in 2012. A city injunction to shut down UberX was quashed by a judge, prompting councillors to try to plug loopholes in its taxi bylaw.

The California-based company refused Tory’s pleas to shut down UberX, for which the company claims 15,000 local drivers and more than 500,000 riders, while city staff worked overtime on the new rules.
“We will be reviewing the report in depth and meeting with city staff to further understand how the proposed regulations may be implemented,” Uber Canada spokeswoman Susie Heath said in a statement.

Tracey Cook, the licensing manager who oversaw the report, rejected the “capitulation” label, telling reporters: “We're striking a balance that recognizes the taxicab industry has competition in the market it has never had before.”

For passengers, she said, “this is an opportunity to avail themselves of a variety of choices in a regulated market.”

The regulations seek to appease taxi plate owners by reversing years of costly reform aimed at ending ownership of multiple plates by people who lease them out and never drive.

But Sam Moini, president of the Fleet Operators Association, called the point moot because, if the regulations are made law, “taxi licences are meaningless anyway. I don't think there will be a taxi industry.”

Moini said the taxi industry will lobby councillors and he is confident they will refuse to pass rules that favour Uber.

“They want a safe, reliable taxi industry, and we're hoping they'll come up with the right decision.”

UBER PROPOSALS ACROSS CANADA

Canadian cities are coming up with different ways to regulate Uber. Ottawa and Toronto have proposed plans, yet to be approved by their councils. Uber says Calgary council’s rules are prohibitive. It is not operating in Edmonton pending a provincial insurance ruling.

Fares

Toronto: No restrictions

Ottawa: No restrictions

Edmonton: Minimum $3.25 per trip booked through app or written contract.

Calgary: Fare based on distance or flat rate, must be clear to customer before ride accepted.

Drivers

Toronto: Criminal background check provided to Uber, available to city on demand, standard licence.

Ottawa: Criminal background checks required, standard licence.

Edmonton: Criminal record search by private firm, standard licence, but Alberta government insisting on police check and commercial Class 4 licence.

Calgary: Calgary police criminal history check and commercial class 4 licence.

Vehicles

Toronto: Yearly safety inspection at a province-approved garage.

Ottawa: Yearly safety inspection at a province-approved garage, twice yearly for vehicles more than five years old.

Edmonton: Annual inspection by mechanic under Uber program.
Calgary: Inspection once per year by mechanic; twice per year for heavily used vehicles.

Accessibility

Toronto: Companies with 500 or more affiliated vehicles must ensure comparable wait times and fees for disabled people requiring accessible vehicles.

Ottawa: Voluntary per-ride accessibility surcharge. City will report back on negotiations with company and seek Ontario approval to make accessibility a mandatory requirement.

Edmonton: Companies provide accessible services or pay a $20,000 yearly dispatch accessibility surcharge.

Calgary: City reporting back this fall on requirements.

Fees

Toronto: $20,000 one-time fee for company, annual $10 fee per vehicle and 20 cents per trip.

Ottawa: $807 to $7,253 yearly fee depending on size of company and 10.5 cents per trip.

Edmonton: $50,000 yearly for company and 6 cents per trip.

Calgary: $220 yearly for each driver.