Uber drivers mull their future after company suspends service in face of injunction

CalgaryHerald.com
Nov. 24, 2015
Reid Southwick

Months after he was laid off from a local food processing plant, David Chawi is banking on Uber’s return to Calgary to help him pay his bills.

During Uber’s short-lived stint in the city, Chawi said he frequently drove for the ride-sharing service, working late into the night and early morning to supplement his income from a part-time cleaning job.

“A couple of months ago, I lost my full-time job; I got laid off, and I can’t find any more (work),” said Chawi, who used to work in packaging at Lilydale Inc.’s processing plant in southeast Calgary. “It’s not good for me.”

Uber suspended its app-based service in Calgary after a judge approved a temporary injunction against the company. City officials argued drivers were picking up customers without proper insurance and licensing, sparking legal and safety concerns.

City officials launched a sting operation to catch offending drivers, charging 19 people with 52 traffic safety and bylaw offences, with 48 charges pending against another 19 drivers.

The city will seek a permanent injunction next month, until its safety, regulatory and insurance concerns are met.

Uber drivers had been hoping to cash in on the snowy Christmas shopping season, a time of year when the local taxi industry is strained, with customers fuming over busy signals when trying to order a cab.

Instead, Chawi will shovel walkways and driveways to make extra cash. Still, he remains optimistic that Uber will satisfy the city’s requirements and return to operations before long.

Don Carruthers, an Uber driver who was served with injunction paperwork 20 centimetres thick, said city hall’s efforts to block the ride-sharing service have been heavy-handed and unnecessary.

Carruthers said he researched the company thoroughly before applying for the job and was convinced he was adequately insured, citing the company’s $5-million insurance policy.

“Their (the city’s) attitude is that they are trying to save us from ourselves,” he said.

City officials say they’re worried Uber drivers operate with little oversight, raising questions about vehicle inspections, driver background checks and inadequate insurance coverage.

Despite Uber’s $5-million policy, Alberta’s superintendent of insurance warned the type of coverage Uber drivers would need did not exist in the province, and urged the industry to produce these policies soon.

Carruthers said there is not enough money to be made as an Uber driver in Calgary to qualify as full-time work, though he said that would likely change if the company was allowed to stay and build a customer base.

A retired engineer-turned-entrepreneur, Carruthers was attracted by the flexibility of setting his own hours. He also enjoyed conversations with customers, something he felt kept him connected to the pulse of the city.

“I’ve been surviving without an employer for 25 years, and so I can figure out a way to get by,” he said. “However, the opportunity to drive Uber, in my mind, has been taken away from me for nothing but ancient legal rules.”

City officials have proposed a hybrid taxi system that would allow Uber to legally operate in Calgary. Traditional cab companies would compete with the ride-sharing service through approved smartphone apps. City staff have until Feb. 22 to prepare the new rules.