Nine questions about Uber’s taxi ride-sharing service answered

Facts about Toronto’s licensing dispute with ride-sharing app Uber

Thestar.com
June 1, 2015
By David Bateman

According to thousands of Torontonians who got #TO4Uber trending on Monday, Uber is cheap, convenient, and the customer service is generally good.

So why are cab drivers and the city’s municipal licensing and standards division trying to stop the ride-sharing app operating in Toronto?

1. What is the City doing?

It’s applying for a permanent injunction to shut down Uber’s operations, arguing it is unlicensed, and a public safety risk.

2. What does Uber say?

Uber initially argued it was a ride-sharing app. They insist government regulation hasn’t kept pace with their technology. Uber recently applied for a Toronto taxi brokerage license, but declined to apply for a limousine license.

3. What do politicians say?

Mayor John Tory wants a regulatory solution that keeps Uber in Toronto. “I won’t have the Wild West - I’ve said that many times before - but I won’t have us stuck in the 1970s either,” Tory said recently.

4. What do taxi companies and drivers say?

“A company came into a regulated market and decided the rules don’t apply to them. In any other industry, this would not be happening. No restaurant could open without food inspections,” said Kristine Hubbard, operations manager for Beck Taxi.

Drivers complain Uber is destroying their livelihoods. They say Uber drivers are not insured, licensed or properly tested.

5. Do UberX drivers have licenses?

They have clean driving licenses, but are not required to have taxicab licenses.

6. What checks do UberX drivers go through?

Uber says drivers must pass background checks that “surpass” Toronto taxi requirements. Licensed cab drivers’ vehicles are inspected more often. They are also subject to regular criminal reference checks and CPR training.

7. How much does it cost to be an Uber driver?

Beck Taxi’s spokeswoman estimates Uber drivers pay “nothing.”

Toronto Taxicab licenses sold for an average of $118,235 last year. Individual drivers pay $633 to apply for a licence initially and a further $329 to renew the licence each year.

8. Are UberX drivers insured to carry passengers?

Insurers have warned that personal policies may not cover accidents where money changes hands.

Uber say it has a $5-million policy covering bodily injury and property damage, although it has not disclosed policy details.

An Uber driver recently crashed while Kathleen Kahlon, a Toronto resident and regular Uber user, was a passenger in the vehicle. She said the company was “amazing and handled it really well.”

She suffered no injuries, so an insurance claim was not required.

9. What do people think of Uber?

Social media users are overwhelmingly in favour of Uber.