It’s time for Ottawa to legalize Uber. Why? Because in the words of Prime Minister, Justin Trudeau, it’s 2016. Nearly four years after the California-based company was introduced to the Canadian market, the ride-hailing app is only legal in one Canadian city, Edmonton.
Now, it’s time for Ottawa to get on board and buckle up.
Earlier this month, Edmonton city councillors voted to legalize the controversial ride-sharing company.
As of March 1, Uber will legally operate in the city on conditions such as – getting provincially approved commercial insurance, undergoing car inspections and criminal records checks (something Uber already does), charging a base fee of $3.25 while not charging riders based on kilometres and paying the city an annual fee of $70,000 to operate.
In this battle of tradition versus technology, some Edmontonians consider this a “win-win” situation for both taxi and Uber drivers. While in Ottawa, cabbies are still bitter about the “unfair” competition.
On Feb. 2, an anti-Uber demonstration held at Parliament Hill by local cabbies sought to push the city to oust Uber.
Under the current taxi bylaw, licensed cabbies must undergo a police record check and complete both a taxi education program and an accessible taxicab-training course, paid at their own expense. They must also have insurance and a taxi plate.
It is interesting to note, however, that there is a limit placed on the number of taxi licenses issued – one taxi plate for every 784 residents.
Ottawa Mayor Jim Watson has publically expressed his views about Uber. He says that to legalize Uber in the city, the company must adhere to existing regulations.
But since the company boasts itself as a technology company – providing on-demand food delivery services (UberEats) and puppy dates (UberPuppies) – as opposed to a taxi-based service, it has been able to beat around the city’s legislations.
Recently, the city teamed up with a consulting firm, KPMG, to provide possible solutions to the struggling taxi industry.
In December, Centretown News reported on the highlights of the report. The firm suggested three approaches: reforming the taxi industry, establishing a new “Transportation Network Company” licensing category, and abolishing the limit of taxi licence plates.
Evidently, each approach has its pros and cons.
The first recommendation favours taxi drivers as it seeks to reduce fares and implements some of Uber’s approaches.
The second favours Uber drivers, as creating new legislation means legalizing the service. Lastly, eliminating the limit on taxi plates could bring down the prices but increase competition.
Unlike Edmonton’s new bylaws, which seek to benefit both parties, these approaches pose winner and loser-like outcomes.
Ottawa should adopt the template set by Edmonton’s city council.
Cities like Toronto are already looking to implement similar regulations in the city.
Critics of Uber argue that the service is unsafe for riders as there are no protocols regulating their safety.
By legalizing Uber and implementing protective measures like panic buttons and cameras, concerns over the safety of passengers and the drivers can be standardized and monitored.
Another concern posed by skeptics is insurance. Many are concerned about Uber’s limited insurance plan, which only covers passengers, pedestrians or other cars.
However, as of Feb. 2, Uber drivers will be fully insured as the provincial government approved Aviva Canada’s request to provide coverage for the ride-hailing company.
The friendly competition between Uber and taxi services might be intimidating for some, but is that really a reason to protest against legalizing the service? After all, it’s the customers who choose one service over the other, not the provider.
With fully insured drivers, the framework to legalize Uber is already in place. It’s time for Ottawa to shift gears in this debate.