Uber and city work together to iron out wrinkles in regulatory framework

CTVNews.ca
Dec. 11, 2015
Colleen Schmidt

The City of Calgary is trying to hammer out a new agreement that will allow Uber and other private for-hire vehicle operators to set up shop in the city.

On Friday, the city announced that it was working with Uber to come up with the regulatory framework to create a service that is safe and reliable for Calgarians.

The city has agreed to drop its application for a permanent injunction against Uber and Uber has agreed to continue to abide by a temporary injunction while a new regulatory framework is created.

Uber launched its ride-sharing service in Calgary back on October 15 and the city opposed the initiative, citing concerns about driver background checks, vehicle inspections and a lack of proper insurance.

Taxi companies also complained that Uber would have an unfair advantage because it’s not subject to the same regulatory rules and fees that apply to taxis.

The city stepped in with an injunction against Uber on November 20 and the mayor says he is disappointed Uber entered the market before regulations were in place but he is looking forward to working things out.

“I remain disappointed that as the city was working hard, in fact ahead of most jurisdictions on creating a regulatory environment for Uber to operate, they launched anyway and in particular they launched before the right insurance was in place and this is something we’re not compromising on. Every car on the street, regardless of whether it’s a taxi or pizza delivery vehicle or your car or my car, needs it have proper insurance and Uber didn’t have it,” said Mayor Naheed Nenshi. ”I’m looking forward to working with them and making sure that early in 2016, we’ll have a regulatory environment that will allow them to operate safely, legally and with proper insurance.”

The city says the lack of a provincially approved insurance product is an outstanding issue and that it will work with Uber and the provincial government to resolve any issues.

City administration is consulting with both taxi services and Uber to prepare amendments to the Livery Transport Bylaw to regulate transportation network companies and private for-hire vehicle drivers.

“We should be ready very early in 2016, if not January, February, with the bylaws, if council passes those bylaws, I expect they will, if council passes those bylaws and the regulatory environment is done and we’ve completed our to-dos. Uber needs to work on getting that insurance product in place and I understand that the insurance should also be ready in the early part of 2016,” said Nenshi.

Amendments to the bylaw are expected to go back to council no later than February 22, 2016.