The city should consider new approaches for dealing with the struggling taxi industry, says KPMG, a consulting firm providing audit, tax and advisory services.
The firm released its latest policy report on Nov. 18 that says the current regulations regarding licensed taxis and unlicensed ride-hailing companies should no longer continue. The guiding principles of the report suggest improving public safety, accessibility and consumer protection.
KPMG explains that Uber services do not comply with city by-laws and that the city’s attempt to charge Uber drivers for violating bylaws has been unsuccessful, despite the 168 charges laid in the past year.
“Going forward, continuing a substantial Uber operation outside the regulated environment is not an option,” says KPMG in its report on policy options. “Similarly, continuing the operation of the taxi industry in its current form should not be seen as an option either.”
KPMG’s report proposes three approaches, which are not mutually exclusive. The first suggests reforming the current taxi regime to incorporate Uber-like concepts of rating drivers, which will allow for competition and reduced fairs.
The second approach suggests that the city establish a new “Transportation Network Company” licensing category, which would allow services like Uber to operate in Ottawa.
According to the report, this method has been successful in other cities. Susie Heath, spokesperson for Uber Canada, says she is fond of the second approach.
“We’re pleased with the direction of the draft report and are particularly encouraged by the policy option around establishing a new Transportation Network Company licensing category just as has been done in over 60 jurisdictions in North America,” she says.
Uber has since sent out an email to those signed up for its service in Ottawa, asking them to email their support for the second option to the city account that is setup for public feedback. In the email “Uber Ottawa” asks for customers to help the city craft “smart regulations” that don’t include fare regulation, in-vehicle cameras or city-mandated training courses – all of which taxi drivers in Ottawa are required to have.
Amrik Singh, president of Unifor 1688, the union that represents Ottawa taxi drivers, says this policy report will not better the industry and is overly accommodating to Uber.
“For us, this service (Uber) is illegal, it’s unsafe, it’s uninsured and breaking every law; provincial, federal and municipal,” says Singh. “It makes no sense.”
The third and final approach in the report suggests getting rid of the limit on the number of taxi license plates, which KPMG acknowledges has its challenges.
This option would mean that those who currently own plates would have all value tied to their plate eliminated, which Singh says will cause hardship for many who have yet to pay it off or are planning to retire.
“If these kinds of reports go through taxi driving will become a part-time job, people will do it for a few hours after their day job and you will put 3,000 families out of work,” he says.
The final report of the Taxi and Limousine Service and Regulation Review will be submitted by month’s end.
However, KPMG’s suggestions to update city regulations could be affected by two private members’ bills that have both passed second reading at Queen’s Park.