City asks for public feedback on how to determine Uber fares

Council meeting Jan. 26 will decide if city will regulate company's user fees

CBC.ca
Jan. 4, 2016
By Laura Osman

City council on Monday called upon potential customers to weigh in on how to determine Uber's fares through a survey.

This comes after a man was shocked to discover he had been charged $1,114.71 for an Uber ride on New Year's Eve.

The city plans to regulate Uber, which currently operates illegally in Edmonton, under the vehicle for hire bylaw. Council will debate whether the company's fares should be decided by the city, as traditional cabs are.

Currently, Uber sets its own rates. The company uses what is calls "surge pricing," which means customers pay higher fares when the service is in greater demand and lower rates when many cars are available.

"We have heard from the taxi industry that this model is unfair and does not allow them to compete with companies like Uber. Therefore, the City is considering several fare options," the survey says.

Feedback will be presented to city council on Jan. 26, when councillors will fine-tune the bylaw to legalize and regulate Uber.

Following his New Year's Eve shock, Matt Lindsay is calling for preset fares after Uber charged him 8.9-per-cent higher rates than usual for a ride home. Uber has since offered to cut his $1,114.71 fare in half, he said.

He acknowledges he was not sober, but said that made him vulnerable to what he believes was an excessive rate.

He also wants council to make it mandatory for Uber and similar companies to display the fare during the trip, which is the rule for taxis.

"It eliminates confusion," Lindsay said. "It essentially eliminates exactly what happened to me."

Coun. Andrew Knack said he doesn't think that's necessary, since Uber warns its customers about surge prices when they use the app.

"As to whether we need to put a firm maximum, I don't know if that's our place," Knack said.

Until council agrees, Garry Dziwenka, the city's vehicle for hire director, said passengers should remember that Uber is currently not regulated.

"Passengers may put themselves at risk when considering an unlicensed taxi," he said. "Personal insurance, plus fares that are not regulated are potential problems."

Council will debate the bylaw to legalize Uber Jan. 26. If passed, the bylaw could come into effect as early as February.