Newly elected taxi union president Pierre Nakhle said cabbies remain opposed to the legalized Uber. Jolson Lim, Centretown NewsA new city bylaw legalized ride-sharing services like Uber on Sept. 30, but for the city’s main taxi union, legalization of the industry’s chief competitor after a fierce two-year struggle is still hard to accept.
Unifor Local 1688 is currently in talks with taxi companies on how to compete with the San Francisco-based private transportation company in the wake of its recent legalization.
“We had a strong position at that time, and we objected to so many of their proposals,” Pierre Nakhle, president of Unifor Local 1688, said of the city’s decision last spring to legalize ride-sharing. “Unfortunately, the council decided to go ahead with it. We still have the same position. Our position is even stronger than before.”
The bylaw puts services like Uber in line with city taxi bylaws and recognizes them as a private transportation company, so long as they have an operating licence. Ottawa became the first jurisdiction in Ontario to legalize ride-sharing services.
The company received a first-of-its-kind city licence on Oct. 4.
Uber had been operating illegally in Ottawa since 2014, sparking outrage and protests by Unifor and taxi drivers across the city.
Uber drivers such as Steve Armstrong, who have been operating before the bylaw change, have long been waiting for the day the city legalized the company.
“It’s an easy way to make money,” said Armstrong. “I love driving and you get to meet new people, choose your own hours and be your own boss.”
“Now that it’s legal more people will be using the service.”
The new bylaw would also allow taxis to decrease their fares if ordered through apps, like on a smartphone. This would allow fairer competition against Uber, according to Nakhle.
But, he added, decreasing fares to compete may mean lower incomes for drivers who already pay for dispatch services to operate.
“It’s easy to say you can decrease the price but we still fall under heavy payments,” he said. “We have to be fair to the drivers, too. When the company says it’s decreasing fares, it’s the driver that’s losing the money, not the company.”
Still, Nakhle said the union is in discussions with taxi companies about decreasing fares.
Ottawa taxi drivers like Watany Ben Jamil are ready to compete with a legalized Uber.
“This is going to come to a price war and it’s about time it’s going to happen,” said Ben Jamil. “The taxi drivers have to fight back.”
In May, Ben Jamil and his wife created an app called O-Taxi that would allow drivers to avoid expensive dispatch fees and keep 100 per cent of their fare.
Though his app is functioning, he says getting drivers on board is hard with taxi union restrictions.
“We have problems with the drivers being under a monopoly and agreements with their dispatching services,” he said. “They’re not able to take services through an app because of their legal agreements.”
He said competitive pricing is key to winning a war against Uber.
“Uber would be out of here in three months if there was a fair price competition.”
In Ottawa, passengers can save as much as 44 per cent when taking UberX (the basic Uber service) over a cab, according to research by the10and3.com.
Online fare estimates indicate a taxi ride from the Byward Market to Kanata could cost $54, but as little as $23 with UberX.
Taxi fares in the city are currently metered and regulated by the city, but may be lowered if rides are arranged through apps, according to the bylaw.
But for Uber drivers, like Armstrong, taxi companies have reached the end of the line.
“It’s 2016,” said Armstrong. “Things have advanced. A small portion of me feels bad because what they paid for with their taxi plates is now worthless but at the end of the day they did it to themselves. For such a cheap rate, how can you not love Uber?”