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Talks between Uber, Quebec going down to the wire

Negotiations between Uber and the Quebec government are going down to the wire, with the ride-share company suggesting it may shut down, and a report indicating a deal with the province is in the works.

MontrealGazette.com
Sept. 6, 2016
By Ryan Remiorz

The two sides have up to midnight Wednesday to agree to the terms of a pilot project, failing which Uber says it will have to stop operating in Quebec.

Bill 100, which passed June 10, calls for ride-hailing companies to adhere to Quebec’s existing system of taxi permits, or risk facing stiff penalties.

But the law also gave the government and Uber until Sept. 8 to hammer out a pilot project, which would see Uber operate legally in the province within its own special category.

In the absence of an agreement, the law will come into effect at midnight Sept. 8, and Uber drivers operating without permits could be fined.

On Tuesday morning, Uber sent an urgent email to its Quebec members, saying it will “suspend operations in Quebec” as of Wednesday at 11:59 p.m. if it can’t come to an agreement.

“At this time, we are still in discussions with the government and no definitive agreement is in place,” Uber said in the email.

The company urged members to take to Twitter to show their support using the hashtag #proUberQC.

The Uber-Quebec negotiations are progressing, according to one report.

On Tuesday, La Presse reported that Uber has agreed that its drivers will be obligated to collect the provincial sales tax and the Goods and Services Tax by Oct. 1. This agreement does not include repayment of taxes prior to October, the report said.

Uber’s Quebec spokesperson did not return a call seeking comment. In a statement, the company said that “over the past few months, we have made significant concessions and we continue to make every effort so that a pilot project is in place by Sept. 8.”

Speaking to reporters, Premier Philippe Couillard said he’s optimistic a deal will be reached before the deadline. He confirmed the two sides had agreed on Uber collecting taxes.

The governing Liberals’ youth commission, which supports Uber, said it expects Transport Minister Laurent Lessard to soon announce details of the pilot project.

In a statement Tuesday, the youth commission said creating a fair “tax framework for (Uber and other such companies) must remain a priority,” though any such framework should not stifle innovation.

In May, the Liberals’ general council meeting passed a resolution from the Liberal youth calling on the government to work with Uber and other players in the sharing economy, taking into account new business models.

Uber insists its drivers would never be able to afford taxi permits because they work too few hours, but the company is open to paying an annual administration fee of $100,000, as well as a 35-cent fee per ride, which would generate an estimated $3 million annually for the province.

In addition, it has proposed that a seven-cent per ride tax could be charged for the benefit of the province’s automobile insurance board, the Societe de l’assurance automobile du Quebec.