Fate of Uber in Toronto hangs in the balance

Councillors continued to negotiate alliances on reforms for Uber and the taxi industry into Monday evening, just ahead of a big vote at council

Thestar.com
May 2, 2016
By Jennifer Pagliaro

Heading into the biggest vote since the Gardiner East debate, Mayor John Tory has yet to wrangle the votes needed to approve a new set of regulations for Uber and the taxi industry.

Ahead of council, which meets starting Tuesday morning, Tory himself made calls over the weekend and met councillors into Monday evening as he looks to leverage support from left-leaning colleagues needed to pass the reforms.

Those with knowledge of the negotiations said the mayor’s office is attempting to win support from a group who has defended 2014 reforms that added new safety regulations and looked to put more owner-operators on the road by phasing out an elite group of taxi plate owners.

While much of that work was stripped from a staff proposal released in April, it’s expected a series of amendments pushed by the mayor’s office and allies would look to return some of those reforms in order to amass enough support to pass.

What’s believed to be a close vote follows a marathon licensing committee meeting in April that saw a group of mostly right-wing, pro-taxi councillors gutting the staff report of any rules that would allow Uber’s most popular service, UberX, to operate on city streets.

After varying regulations passed in Ottawa, Calgary and Edmonton, all eyes are now on the debate in Toronto where Uber currently has 500,000 active users and 15,000 drivers.

Still at issue are concerns over passenger safety, drivers having equal insurance, oversight and inspections, and the number of vehicles allowed onto the roads.

Hanging over the debate is the concern that two differing categories of regulations - one for taxi drivers and one for “private technology companies” - has Uber playing by a different set of rules, which critics on council and within the industry argue make them less accountable to the city.

Uber Canada officials have said they are willing to be flexible on some items, including a requirement for all drivers to equip their vehicles with snow tires if driving in the winter.

But other concerns, like allowing an unlimited number of drivers to be licensed, have left little room for negotiation thus far.

“I think people are very solid in their views,” said Councillor Jim Karygiannis, a member of the licensing committee who voted in favour of scrapping regulations to bring the U.S.-based company under the city’s purview.

Though he earlier told the Star he believes the company must be properly regulated, not necessarily exiled, he appeared less certain on Monday.

“I’m starting to lean more on the, ‘Thank you very much, Uber, goodbye.”

Others say they support the direction of staff to loosen regulations on taxis as rules for Uber are introduced, allowing for increased competition.

“I’m very much in favour of enabling a competitive environment where private transportation can operate under regulations that keep passengers safe,” said Councillor John Campbell, who appears to be aligning with the mayor.

The first-term councillor said some colleagues who have been at city hall longer appear to have entrenched views and alliances within the taxi industry, while newcomers like him, who may be swing-vote targets, have fewer allegiances.

“It’s not my view that it’s our job to protect jobs in any industry,” he said, adding he’ll support regulations that increase safety measures, including snow tires.

The mayor has made the Uber debate his key item at council, which means it will be up first for debate at city hall, where it is expected to dominate discussions for hours.

This week, council will also debate whether to approve a pilot project for a five-kilometre stretch of bike lanes on Bloor St., what is expected to pass with Tory’s stated support.

Also on the agenda is a decision over the Ward 2 Etobicoke North seat left vacant by the late councillor Rob Ford. Staff have outlined the procedure for holding a byelection in July or for council to appoint a replacement. The choice is up to council. Tory has said previously he would support a byelection with more than two years left in the term.