Proposed vehicle-for-hire regulations reignite taxi industry, Uber war
Posted April 7, 2016 9:55 am.
Last Updated April 7, 2016 8:33 pm.
This article is more than 5 years old.
New proposed regulations for the taxi industry and Uber were expected to calm the storm that’s swelled over the city but seem to have added fuel to the fire.
More than 100 new recommendations were unveiled Thursday at city hall following 18 months of protests and dramatic council meetings by the taxi industry.
Tracy Cook, executive director of municipal licensing and standards, said she believes the recommendations will create a balance in the ever-evolving ground transportation environment.
“We believe, and I believe, the recommendations we’re making for new regulation governing all ground transportation providers under a new vehicle for hire bylaw is balanced, is fair and will appropriately frame the city’s role in regulation and absolutely ensure that we’re fulfilling our mandate of public safety and consumer protection.”
Taxis will be able to offer a discounted fare if riders book through the phone or app and drivers will see lower licensing fees.
Cook said she felt the recommendations took away some of the regulatory burdens on the current taxi industry.
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“These recommendations are enabling operational flexibility beyond what the taxi cab industry has had in the past,” she explained. “We’re striking a balance here that recognizes the taxi cab industry now will have competition in the market that it has never had before. And that definitely changes the focus and has us look at how we regulate.”
Meanwhile, UberX drivers must undergo a criminal background check and get a $2-million insurance coverage plans, similar to that of their taxi counterparts.
Cook added that these are just regulations and it’s up to the city to make the laws.
“Let’s remember this report is to set the basis for discussion and a debate for our councillors, some of whom are here, to make those decisions.”
And it appears it’s going to be a very heated debate.
Several city councillors were quick to voice their disapproval of the recommended regulations, including Coun. Janet Davis who said they were caving to Uber.
“They need to start over. What staff has proposed is a huge step backwards,” Davis explained.
On social media, Coun. Mike Layton called it a step back from existing regulations and added that not imposing a driver cap would mean an unlimited number of drivers would be trolling for fares on busy streets at busy times, increasing downtown congestion.
“I’m no taxi lobbyist, but I am a transit lobbyist and don’t want more cars trolling for fares,” Layton tweeted. “We can regulate the efficiency, but that doesn’t mean we should allow unlimited cars for hire. Some streets will be flooded.”
Representatives from the taxi industry said these recommendations would kill their industry.
Taxi industry says new city recommendations will kill can industry #topoli @CityNews pic.twitter.com/xDF2IlVHxL
— Cynthia Mulligan (@CityCynthia) April 7, 2016
“This is not the even level playing field that we were hoping for and we’re hoping to speak with the councillors,” Sam Moini owner of a fleet garage HPM Taxi, told the media.
“Just by looking at it, off the top of my head, I don’t think that there will be a taxi industry. There’s a big issue for the drivers. I don’t think drivers will be able to make a decent living however we still have to review it. We still have to see the details of the report,” Moini continued.
Uber released the following statement on Thursday:
“We commend Tracey Cook and city staff for working diligently to find accommodation for all parties in the ground transportation market by proposing updates to existing regulations. We will be reviewing the report in depth and meeting with city staff to further understand how the proposed regulations may be implemented, and will have more to say in the coming days.”
Mayor John Tory, who is currently in California, released the following statement on the recommendations:
“Today, we have new regulations that create a level playing field, provide safe, convenient options to our residents and allow drivers to earn a competitive living,” Tory said in the statement. “Toronto has an opportunity to put the interests of its residents first and create a regulatory environment that protexts drivers and allows companies to fairly compete.”
City council will vote on the recommendations next month.
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