Corp Comm Connects

Ridesharing companies poised to launch in Calgary

Calgaryherald.com
May 11, 2016
By Trevor Howell

Uber says it’s unworkable. So does Lyft.

But several companies are ready to jump into Calgary’s nascent ride-share market as fully licensed operators just months after council passed a new livery transportation bylaw - and just in time for the Stampede, when demand for cabs typically spikes.

Postmedia confirmed city hall recently approved transportation network company licence applications from Allied Limousine, Cowboy Taxi out of Airdrie and Edmonton-based TappCar. The Taxi and Limousine Advisory Committee will receive a verbal report on those applications at its Wednesday meeting.

A fourth entrant, Keys Please, is putting the final touches on its new smartphone app - called Ride Please - and submitted its application Tuesday. The longtime designated-driver service hopes to be up and running by Stampede.

“Our website is actually being worked on as we speak, in regards to getting the applications for drivers coming in so that we’re ready to open our doors and run,” said Ginger Greenwood, general manager for Keys Please.

In February, city council approved a new bylaw, which went into effect April 4, legalizing transportation network companies, also called ride-share or ride-hail companies. It requires drivers to hold a Class 4 driver’s licence, undergo a police background check and obtain provincially approved insurance coverage, which could be in place by July 1.

San Francisco-based Uber denounced Calgary’s bylaw as “unworkable,” vowing to keep its service out of the city until officials tailor the regulations to suit its business model. Likewise, Lyft, another high-profile ride-hail company, has thumbed its nose at Calgary.

But Alberta-based companies appear to be clamouring to jump into the market.

“We found a way to comply with everything the city has asked for ... we actually believe that all of that is important,” said Ryan Weisensel, director of corporate development for TappCar.

“If my family is getting in a cab or a ride-share or ride-for-hire vehicle, I want to know that driver is a professional and cleared a criminal-record check,” Weisensel said. “I want that peace of mind, so we wanted to create a business that gives everybody that peace of mind.”

TappCar launched in Edmonton just eight weeks ago. It now employs 250 drivers in that city and has seen more than 25,000 downloads of its app. It charges full-time drivers a $250 a week flat fee that covers union dues, pension plan, health benefits and commercial vehicle insurance. Its drivers pocket fares beyond that levy.

“We think happy drivers stay longer, happy drivers give better customer service,” Weisensel said. “If we’re not looking out for the drivers’ best interest, it doesn’t create a good environment.”

He said TappCar’s rates will likely be higher than Uber’s but lower than traditional cab fares, though it’s unclear whether the company will adopt Uber’s surge pricing scheme that can see rates increase significantly as demand climbs.

Cowboy Taxi’s Mohammed Benini said his company’s application was approved shortly after the Calgary’s bylaw went into effect, but has held off on launching until it has enough drivers to meet expected demand.

“We’ve had more than 50 drivers download the app and show interest,” said Benini. “A lot of these drivers are saying, ‘Hey, this (commercial) insurance is really expensive.’ I might wait until July 1 when insurance plans change (before launching).”

Commercial insurance costs around $6,000 annually, too high for many ride-share drivers, particularly those only working part-time hours. In February, Alberta Minister of Transportation Brian Mason said a new insurance product for private for-hire drivers would be available in June or July.