British Columbia plans new ride-hailing rules for 2018

TheGlobeAndMail.com
Oct. 16, 2017
Mike Hager and Justine Hunter

British Columbia plans to allow ride-hailing companies such as Lyft and Uber into the provincial market next fall, but only after the existing taxi industry is modernized.

In last spring's election campaign, the New Democrats had promised to craft legislation to allow the services by the end of this year, but Claire Trevena, Minister of Transportation and Infrastructure, told reporters on Monday afternoon that it will take time to create a system that meets consumer demand for them while protecting the safety of passengers and the jobs of people who currently are taxi drivers.

To ensure a successful "made-in-B.C. solution," she said, the province has hired economist Dan Hara, an expert on the taxi and ride-hailing sectors, to consult with the taxi industry, its drivers, local governments and taxi customers to draft recommendations by the end of the year on how the province can reform the industry and allow companies such as Uber and Lyft to operate.

"We have passenger safety to make sure of and that's the fundamental issue I'm dealing with," she said when asked about the delay. "How [ride-hailing] business models match that is something the businesses themselves really have to work towards."

She said Uber, Lyft and other similar companies "have every right to apply right now" for a taxi licence, but they would have to follow the same rules as taxi companies, which ensure drivers operate with the proper oversight, training and insurance.

Ms. Trevena said Mr. Hara will study how and why the number of these licences in B.C. has fallen out of line with demand – creating chronic shortages of taxis in some areas.

Mr. Hara issued a report on the taxi industry and ride-sharing for the City of Vancouver in 2015. Vancouver councillors placed a moratorium in the fall of 2014 on any licensing that would allow Uber to operate and have yet to lift those restrictions.

Ms. Trevena said a more comprehensive look at the whole province is needed.

Opposition critic Jordan Sturdy said another study is not needed because the work was done by the previous Liberal government.

"It's fundamentally a disappointment," he told reporters in Victoria. "We had a promise the Premier made that we were going to have ride-sharing in place by the end of this year. … Clearly that's not going to happen."

Ms. Trevena said the Liberals' plan to legalize the ride-hailing services would not offer an effective foundation for new legislation because the taxi industry views it as "destructive."

This summer, BC Green Party Leader Andrew Weaver pledged to push the NDP to pass his private-member's bill in October legalizing ride-hailing services. On Monday, he said he was very disappointed with the government's approach.

In an e-mailed statement, he said the Greens intend to re-introduce the private members' bill on Thursday. The Liberal Opposition, which also slammed Monday's announcement, has left the door open to supporting it.

Although the Greens and the Liberals together would have more votes than the governing NDP, the government is not obliged to call a private members' bill for debate.

Uber briefly operated its black-car service in B.C. in 2012, but shut it down after the province's Passenger Transportation Board stepped in. Other smaller unlicensed companies in the Vancouver region primarily catering to the Chinese market are still operating under regulators' radar, arguing, as Uber has, that they are not taxi companies but a technology service that connects drivers and passengers.

On Monday, spokespeople for Uber and Lyft said the companies would work with the government in the coming weeks, with Uber saying it was seeking clarification on the terms of reference that seem to focus Mr. Hara's review solely on the taxi industry.

B.C. Taxi Association president Mohan Singh Kang, said on Monday that his industry group, which represents about 80 per cent of all operators in the province, is happy the government is keeping its promise to consult with the industry and said he has faith in Mr. Hara's abilities.

Mr. Hara's work and the consultations will cost the province $165,000.