Taxi industry-Uber battle rolls into Vaughan
Local taxi owners want Vaughan council to 'level the playing field'

YorkRegion.com
Sept. 23, 2015
Adam Martin-Robbins  

The battle between the taxi industry and ride-sharing service Uber has rolled into Vaughan.

A group of local taxi owners and drivers say they’ve experienced as much as a 40 per cent drop in business during the past year due to Uber’s so-called UberX service, which pairs passengers with ordinary drivers through a smartphone app.

And they’re calling on city council to "level the playing field."

Local cabbies are demanding UberX drivers be subject to the same regulations as they are or, they say, the city should revamp its regulatory regime so it’s “fair” for everyone.

“Uber isn't respecting the city’s bylaws and these bylaws are there to protect the industry as well as the general public,” said Mandeep Sharma, a taxicab owner/operator with Astro Taxi. “Either rewrite the bylaws so costs come down (for taxi drivers) or if you want to keep costs high by imposing certain bylaws then it has to be across the board or declare the other industry (Uber) completely illegal.”

Under the city’s current regulations, taxi owner/operators are required, among other things, to carry a $2 million comprehensive insurance policy, pay licence and brokerage fees, ensure their vehicles meet certain maintenance and cleanliness standards and undergo a criminal background check.   

“There is a fixed cost for an owner/operator of $2,000 per month because of city bylaws,” Sharma said. “The biggest cost is the $2 million comprehensive insurance, which is about $800 to $1,000 a month. The next cost is the brokerage fees, which is about $550. And if if you're renting a plate the cost of that is about $700.”

Cabbies, meanwhile, are limited in the rates they can charge, he added.

“On the other hand, you have Uber drivers who do not fall under any of the criteria,” Sharma said. “It’s violating every single city bylaw there is. Unfortunately, the city hasn’t made their position clear, at all.”

Gurdial Dhillon, from City Taxi, echoed those statements

“I think the city should stand up for us,” said Dhillon, who has worked as a taxi driver for about 10 years. “We have the licences, our criminal background check, and we’re paying taxes. Those people (Uber) have nothing. ...  There’s no safety for the public at all.”

For its part, Uber says it doesn’t make sense to have a single set of rules.  

“The idea of one set of rules for all ground transportation has never made sense — limos, taxis, car sharing, school buses, horse drawn carriages, etc. all have different rules — and it doesn’t makes sense in this context either,” Uber spokesperson Susie Heath wrote in an email. “Ride sharing is a new and distinct business model, rooted in technology and the sharing economy, and riders and drivers across the GTA have asked for it to be smartly regulated and permanently welcomed.”

She also said that UberX drivers must pass background checks and the company screens motor vehicle records for infractions by type and date.

And, she noted, Uber is working with an auto insurance provider to develop “an innovative insurance plan specifically tailored for ridesharing in Canada,” but in the meantime “every UberX ride in Canada covered by auto liability insurance with Uber’s current insurance provider.”

In response to complaints from the taxi industry, Vaughan council passed a resolution last week directing staff to undertake a campaign aimed at “educating the public on the principal aim of the taxicab licensing regime; namely to provide services that promote the health, safety and well-being of taxicab users.”

That campaign will detail the city’s regulations for  taxicab operators such as   requiring that drivers must: be medically fit, undergo sensitivity training, hold a valid driver’s licence, provide a police clearance letter and their vehicles have undergone a mechanical safety check and be kept in clean condition, among other things. 

Woodbridge West Councillor Tony Carella, who tabled the resolution, said given the ongoing court battle between the City of Toronto and Uber — with the possibility looming of an appeal of an earlier court ruling seen to favour the ride-sharing company — Vaughan is taking a “wait-and-see” approach.   

“In a situation like that we don’t want to do something that’s going to cost us a lot of money and try to necessarily defend the old regime or jump on the bandwagon until we know what the courts are going to do,” he said.  “But we can’t sit back and do nothing. Whatever we do is going to be incremental, it’s going to be in stages. And the first stage is, a public education campaign just to remind people why we regulate, why we have the power to regulate. “

Although Toronto councillors are still weighing their legal options, last week, staff there tabled a report recommending changes to regulations including reducing the fare people pay when entering a regular licensed cab from $4.25 to $3.25.

The staff report also recommends a new licensing category and regulatory regime be created for a Transportation Network Company (TNC), such as Uber.

A TNC would be issued a city licence to operate private-vehicles-for-hire while meeting certain rules that still need spelling out.

Toronto city staff have also recommended amending its bylaw definitions of taxicab, taxicab brokerage and limousine service company, to ensure Uber and its ilk are captured in the current regulatory regime.

They also proposed asking the province to confirm Uber has insurance coverage that covers UberX drivers. While Uber claims it does, city officials remain unconvinced.

Carella said Vaughan staffers will likely look at the Toronto report in determining out how to proceed.

“We’ve gotta learn and that’s going to take a little while to figure out what are the advantages that Uber provides and what are the disadvantages and how do we deal with the disadvantages,” he said.

“We’re not in the business of protecting an industry from technological change, that’s not our responsibility. But we are in the business of making sure people who transport other people for money are regulated so that the car is in working order, the inside is clean, the driver doesn’t have all kinds of DUIs against him, he’s got the proper insurance so if there’s an accident you’re covered.”

Heath said Uber is willing to work “collaboratively” with officials “to develop common sense regulations for ridesharing.”

But Sharma said local cabbies can’t afford to wait too long for Vaughan officials to decide on the next steps.

“How many people can work with a 40 per cent pay cut?” he said.