Windsor taxi drivers fear Uber would mean job losses

Windsorstar.com
Nov. 1, 2015
By Carolyn Thompson

Windsor taxi drivers are worried they could lose their jobs if the city changes bylaws to welcome sharing-economy transport companies like Uber.

“Drivers have been worried to the point of anger for years and years now over the threat of Uber coming in,” said John Toth, vice-president for Unifor Local 195, which represents taxi drivers in the city.

“With Uber coming in there would be no stability. You have at least 320 people who rely on that for a full-time job. Most of those would leave the industry. The vast majority of them, if they couldn’t earn a living.”

Last week, Mayor Drew Dilkens asked city administration to prepare a report outlining what changes the city will need to make to bylaws to allow companies like Uber to operate safely and legally in Windsor.

“I think it’s coming whether we want it or not,” Dilkens said. “I’d rather be prepared and make sure we’ve given thought to the issues we should be giving thought to as a regulator.”

Uber connects passengers with drivers in their city who use their personal vehicles to offer rides, as well as taxis. Payment is transferred through an app, rather than handed to the driver.

The U.S.-based company has already launched in cities across Canada, including Toronto, Ottawa and London. A spokeswoman said there are no plans to expand into Windsor right now.

“I’m concerned because it’s not regulated,” Toth said. “Uber’s claim to fame is that they don’t believe in rules. They do what they want, when they want, how they want. That’s the way they’ve operated in other jurisdictions as well.”

Dilkens said while many cities have taken the opposite approach - dumping a lot of money into legal challenges - he’d rather be proactive and prepared for the day the company expands into Windsor.

“It employs people too,” Dilkens said. “Uber drivers are employees. They work and they make money, they pay taxes.”

Toth said most Uber drivers are part-time. They’d be adding competition that makes it hard for taxi companies to be as stable as they have been, without offering full-time jobs or reliable service.

“I don’t see the net benefit to the community,” he said. “I don’t see the Uber drivers being interested in picking up the senior from the grocery store and taking her three blocks to her home. That’s what taxi drivers do. That’s the bread and butter of their business.”

Dilkens said the biggest regulatory concerns for the city involve ensuring vehicles are in good condition, drivers have police checks and that there is insurance in place to protect passengers if the vehicle gets into a collision. He said Uber already verifies driver records before letting someone work for the company.

The mayor said since Uber is a different business than taxis, there would need to be different regulations.

Taxi drivers, for example, require a dome light on the top of the vehicle to show they’re available to be flagged for a ride. He said since Uber doesn’t pick up people flagging them down, that rule wouldn’t be relevant.

In the same vein, he said Uber drivers wouldn’t require a meter in their vehicle, since all charges are paid using a credit card and through the online app.

Toth disagreed. He said the city’s taxi regulations were developed to create a stable and reliable transport service, with rules about how many vehicles need to be on the road to keep up with demand. If Uber comes to Windsor, he said the entire taxi regulations would have to be scrapped.

“If you’re telling me that a taxi cab has to have a dome light so it can be flagged down and if we remove that, the taxi cab is no longer a taxi, I guarantee you tomorrow all the taxi cabs will remove their dome lights so that they can operate as an independent service without having to pay the regulatory fees,” he said.

Toth said taxi drivers have to pay huge costs, such as insurance, plate rental fees, lease payments and dispatch fees, in order to meet the bylaw requirements.

Susie Heath, spokeswoman for Uber Canada, said she was pleased to see support from Dilkens.

“While we don’t have specific launch plans to share at the moment, we look forward to working collaboratively with the mayor, city council and city officials as part of our ongoing process as we explore expansion possibilities and move towards a new regulatory framework that embraces ride-sharing,” she said in an email.

The mayor added he’s a fan of the service. He used it most recently while in Cleveland.

“I see a net benefit to the community myself,” he said.