Toronto rolls out welcome mat for Uber with new rules

New rules approved by city council late Tuesday include allowing cabs to use “surge pricing” and raising the minimum fare for private transportation companies.

Thestar.com
May 3, 2016
By David Rider and Jennifer Pagliaro

After months of protests and turmoil, Torontonians have a legal, regulated UberX travel option for getting around the city.

New rules approved by city council in a marathon Tuesday meeting will further revolutionize Toronto travel by allowing taxis to start using Uber-style “surge” peak-time pricing on fares booked via a Smartphone app.

Some councillors are warning, however, that the road to legalizing ride-hailing services, which use smartphone apps to connect passengers to non-professional drivers using their own vehicles, has made roadkill out of cabbies’ livelihoods and passenger safety.

Mayor John Tory convinced council to vote 27-15 in favour of the new rules.

He got there by winning the support of formerly anti-Uber councillors, including Jim Karygiannis and Giorgio Mammoliti, with a package that rolls back 2014 taxi reforms long and loudly opposed by taxi plate owners.

“The status quo is not satisfactory,” Tory told council Monday afternoon as he stood to move the package of reworked recommendations, causing a stir among left-leaning councillors who thought they had his support for a less Uber-friendly package.

“We cannot end up going out of this chamber without having put some regime in place and there is no ideal answer that is going to satisfy everybody.”

Councillor Gord Perks replied that “the billionaires and millionaires” who invested in Uber and Toronto taxi plates will benefit from Tory’s plan.

The losers, he said, will be taxi drivers and passengers with fewer safety protections, such as cameras in every vehicle.
Among the measures approved by council:

• Allow private transportation companies (PTCs) like Uber to operate in Toronto, booked only through a smartphone app, with a $3.25 minimum fare, no maximum fares and “surge” peak-time pricing.
• Allow taxis to adopt “surge” peak-time pricing for rides booked via smartphone app, and to discount pricing as long as drivers aren't forced to pay the cost of the discount.
• Maintain requirements for taxis to have cameras, and flashing emergency lights, but not for PTCs. Have city staff report back next year on whether PTCs need cameras.
• Ensure PTCs and taxis have insurance of at least $2 million on all drivers for bodily injury, death and damages to people or property.
• Undo 2014 reforms that would have phased out ownership of “standard” plates as a commodity and ensure all cabs be disabled-accessible by 2024.

Uber Canada general manager Ian Black said the company can live by the new rules.

“We're certainly pleased. This is a great day for the riders in the city of Toronto, a great day for drivers as well using the Uber platform,” Black said after the vote. He singled out Tory's leadership, “for shepherding this issue through council to a big step forward today.”

Questioned by councillors earlier in the day, city staff said relaxed requirements for the taxi industry were meant to “empower” them to compete with the sudden popularity of Uber in Toronto.

Tracey Cook, the head of city licensing, said some people were interpreting a “level playing field” between Uber and taxis as one that prevents competition.

“The level of the playing field depends on the viewpoint you’re standing from,” Cook told council. “Many people’s view in the taxi industry of a level playing field means the same playing field and that there is no room for anything outside of taxicab service.”

Cook said, in creating a unique set of rules for private transportation companies, staff tried to assess the “risk” associated with each group of drivers and regulate accordingly.

Unconvinced were hundreds of taxi industry supporters wearing yellow T-shirts urging councillors not to approve a “two-tier” system.

Their boisterous support for those arguing against rules legalizing Uber grew quiet as it became obvious that Tory and his supporters were about to do just that.

They had an unexpected supporter in the form of former councillor Doug Ford, who made an afternoon appearance in the council chamber and said it was not about the future of the Ward 2 seat held by his late brother, Rob Ford.

“We’re here to support the taxi folks,” Ford said during a media scrum, after pulling on a yellow T-shirt.

Uber Canada has said they welcome regulations and are flexible on some requirements, but that their business model relies on part-time drivers who would be dissuaded from signing up for the app if it costs too much or takes too long to be licensed.

Tory’s office said it wanted regulations that encourage other, smaller ride-hailing companies such as Lyft to set up shop in Toronto.

Lyft executive Michael Masserman emailed councillors Monday.

“These regulations maintain rigorous consumer safety standards, while recognizing the unique part-time nature of the ride-sharing industry,” the email said. “In fact, 80 per cent of Lyft drivers are only doing this 10-15 hours a week, which means that burdensome requirements would impede the ability of ride-sharing, and the benefits associated with it, to be successful in Toronto.”