Toronto council rescinds ‘arbitrary’ cap on rideshare licences, Uber praises move

Toronto’s City Council and Mayor Olivia Chow confirmed on Thursday it would continue to issue licences to rideshare drivers, such as Uber, by rescinding a previous cap.

Last week, Uber Canada announced it was taking Toronto to court to reverse the city’s decision to limit the number of rideshare vehicles on its streets.

The rideshare company filed an injunction with the Ontario Supreme Court on Dec. 4, alleging the move to put a cap on rideshare licences is illegal and would irreparably harm its business.

According to some, Toronto’s move came too quickly, so on Thursday, Mayor Chow said she’d wait at least a few more months to see how it plays out.

“It’s about planning, transportation, public transit, greenhouse gas emissions, and across different divisions and departments,” Mayor Chow said.

Opponents of Toronto’s City Council said that’s not enough time to make an informed decision on the impacts services like Uber have on the city and publicly expressed a desire to wait another year.

“The process was not fair. This was walked out of the floor of the council,” said Councillor Brad Bradford (Beaches-East York). “There was no consultation, and just like our chief solicitor said, we’re probably going to be sued. Now we’re getting sued.”

Uber Canada issued a statement following the city’s decision to rescind the cap, saying it will provide temporary relief to the “hundreds of thousands of Torontonians” who use rideshare and drivers who can use this opportunity to earn extra income.

“But make no mistake, this is only a short-term fix. Mayor Chow has signalled her intention to bring back a permanent rideshare cap in early 2024,” wrote Uber Canada spokesperson Keerthana Rang.

“If Mayor Chow was truly interested in reasonable, data-driven, evidence-based policymaking, she would allow City staff to run a comprehensive process.”

Number of rideshare options available in Toronto sparks debate

Opponents warned the city’s move to cap licences would only drive up prices and prompt legal challenges from ride-hailing companies.

Lyft, another popular rideshare company, has claimed the freeze would pull drivers from the city’s busiest areas and lead to increased traffic.

City Council voted 16 to 7 in favour of the cap during its October meeting. No new licences to private transportation companies, including Uber and Lyft, would be issued until a staff report on regulating the industry is completed by the end of 2024.

The number of Uber and Lyft vehicles on Toronto streets has been at the heart of the latest debate surrounding ridesharing in the city. Some say there are too many; others believe there aren’t enough.

Uber Canada wants more drivers on Toronto streets

City Councillor Paula Fletcher (Toronto-Danforth) was around when the decision to allow companies like Uber and Lyft to operate was first made, significantly impacting the taxi industry.

“When [City Council] approved that, I don’t think anybody realized there would be 53,000 new cars on the streets,” said Fletcher.

“Nor did anyone realize this situation with many of the drivers that they’re not making a lot of money. I think everybody thinks it’s lucrative.”

Uber has argued there are surges in demand that require more cars on the road. In contrast, some drivers say there’s not enough business to go around, so the city needs to limit the amount of vehicular traffic.

“There are too many drivers out there. There’s not enough demand to support those drivers,” said Earla Phillips, Vice president of the Rideshare Drivers Association of Ontario.

“We’re waiting for too long between rides. City data from municipal licensing hold that to be true. For more than 50 per cent of their time, they’re empty.”