Mississauga councillors approve Uber pilot program
Vote passed 7-4 at general committee on Mar. 22

Mississauga.ca
March 22, 2017
Rachael Willilams

After a year of turmoil and uncertainty over Mississauga’s ground transportation network, Uber has been given the green light to operate in the city.

Councillors approved terms for an 18-month pilot project that will allow transportation network companies (TNC) such as Uber to operate in Mississauga under approved regulations. The plan also reduces the controls in place on the taxi and limousine industry to create some parity in the market.

"Our plan is an important opportunity to level the playing field by modernizing rules and regulations to ensure Mississauga is a city in step with the times, and with what the public wants,” said Mayor Bonnie Crombie.

But cabbies who have invested hundreds of thousands of dollars on plates, licensing fees, training, insurance and vehicle safety requirements to meet standards mandated by the city say they feel abandoned by their elected representatives.

“You’ve been telling me for 40 years to abide by the system and now it’s being thrown out,” said Karam Punian, of the Airport Limousine Driver Association.

Sympathizing with the plight of the taxi industry, Coun. Carolyn Parrish put forward a motion to have the report deferred to the public vehicle advisory committee (PVAC) for further review.

“We know that once this becomes legal, and after an 18-month pilot project, it’s in,” she said, adding the report was released on short notice (last Friday) and requires further analysis by council.

“I disagree,” said a visibly frustrated Crombie. “To send this back to PVAC, we’re just going around in circles again and again and again.”

Last April, PVAC voted against the legalization of Uber while Crombie was on a trade mission in Japan. When the matter came before council a few weeks later, councillors opted to create a new subcommittee that would put forth recommendations for a one-year pilot program to allow TNCs to operate in Mississauga.

After a handful of meetings, the subcommittee disbanded because audience members, most of which were from the taxi industry, were disruptive and at times, volatile toward councillors.

It was left to staff to come up with the terms of a pilot program, which were presented on Wednesday.

“It’s been challenging to say the least,” said Coun. Karen Ras, who sat on the TNC subcommittee. “It’s certainly time to put some regulations and rules behind the TNCs.”

Terms of the pilot program include: a $20,000 licensing fee, 30 cents per trip to be remitted to the city, criminal background checks, medical certificates, random vehicle inspections, an annual vehicle safety, driver information to be retained and provided on request and minimum insurance coverage of $5 million liability and $2 million auto, plus a permission to carry passengers.

Licensed TNCs will be required to supply periodic confirmation from an independent auditor confirming the accuracy of the data.  

“Inspection accounts” will also be set up  by the TNC to allow the city’s municipal enforcement officers to conduct random infield investigations.

English language tests and in-car cameras are not required by TNC drivers and will be suspended as a mandatory requirement for cabbies during the length of the pilot.

To improve parity, staff also recommended repealing the requirement for taxis to undergo vehicle inspections twice a year and allow cabbies to use a smartphone app to book trips with the price of that trip determined by the online rate identified, not the conventional meter rate.

The city anticipates $850,000 in annual revenue to be generated through this pilot program.

“You can vote to do nothing while this industry continues to operate, but we won’t see a dime,” said Crombie, adding at least this model allows the city to cover the costs of enforcement.

Crombie also emphasized that 60,000 residents per week use Uber in Mississauga and it would be a disservice to deny them the opportunity to choose how they travel.

Councillors voted 7-4 in favour of the pilot project, with councillors Parrish, Ron Starr, John Kovac and George Carlson on the losing end.

The report will come before council for final approval on Mar. 29.