The federal Competition Bureau’s recent endorsement of rideshare services such as Uber is not likely to change the City of Ottawa’s bid to shut it down as an unlicensed and unfair rival to taxis.
Uber is an American-based technology company that offers ride-sharing services through its smartphone app.
Requests for rides are submitted through the Uber app, which then finds a corresponding driver available in the vicinity using GPS technology.
Current Ottawa bylaws require drivers to own a taxi licence and comply with certain requirements such as operating in a properly inspected and identified vehicle, and having a camera installed.
The key issue is that Uber drivers operate without those city-issued licences and without conforming to other rules that govern taxis.
On Nov. 25, Canada’s competition regulator issued a statement asking cities to “explore whether less restrictive regulations could adequately address their (safety) concerns.”
In an email interview, Martine Dagenais, the bureau’s deputy commissioner of competition, said that “municipalities should impose regulation on innovative business models no broader than what is reasonably necessary to achieve consumer protection.”
But for Bay Coun. Mark Taylor, the issue isn’t about competition.
“We have a set of bylaws that are set up for the most part to protect passenger and driver safety,” says Taylor, who also chairs the city’s community and protective services committee, which regulates the taxi industry. “None of that is currently available in the Uber world.”
He adds: “If Uber wanted to operate in Ottawa, my message to them would be to come inside our regulatory framework – rules that have been approved by Ottawans for the safety of Ottawans – and then operate there.”
Uber, on the other hand, welcomed the statement from the bureau with open arms.
“We agree with their view that new transportation options – such as Uber – offer better prices, convenience and service to consumers,” Xavier Van Chau, a Canadian spokesperson for Uber, said via email.
He says the company is “actively working with municipalities across the country to address the need . . . (for) a smart regulatory approach to modern transportation alternatives.”
With a new city council just starting its term, Taylor says there will be a holistic review of taxis, limousines and ride-sharing services to attempt to house them all under a set of comprehensive bylaws.
“None of that is going to get away from the fact that there are certain things that Ottawa residents have said that are important for safety which sometimes . . . have been proven we need – things like cameras in the vehicles,” he says.
The city, using undercover city staff to book Uber rides, has started enforcing the bylaws against unlicensed taxi drivers. Twenty-eight charges have been laid since Oct. 4, when Uber started operating in the city.
Uber drivers are currently fined $650 when caught offering a customer a drive, whereas fines for repeat offenders can reach $100,000.
The attractiveness of the model resides in the fact that drivers are free to make their hours and can use their own vehicles to operate. Fares are also typically lower than that of the traditional taxi services available in Ottawa, according to the company.
Uber Ottawa’s website sets the fare at a $2.30 base fee plus 30 cents per minute and 90 cents per kilometre in addition to a $1 “safe rides” fee.
The current city taxi fares are set to $3.45 for the first 150 metres, 16 cents for every extra 86 metres and 16 cents for every 24 seconds of waiting time.