How Toronto is Accommodating Uber

Back in late September of last year, Toronto city council asked their staff to develop a new plan for incorporating Uber into their existing taxi and limousine bylaws. According to CBC News, this was the first time the city officially asked Uber to cease operations, temporarily, until the new rules had been drafted and executed.

Toronto’s Licensing and Standards Committee was given the task of trying to level the playing field between cabbies, limo drivers and Uber drivers. A seemingly impossible task, considering the only compromise taxi drivers appear willing to accept is Uber’s complete elimination from the city.

The proposal on the table? Create a two tier system, one that adds “Transportation Network Companies” as a category alongside taxicab companies. A system that some are already criticizing makes little to no sense. Currently, Toronto Taxis still operate under a two tier licensure system: Ambassador Licenses are given out to drivers who own and operate their own vehicles. Standard Licenses have fewer restrictions. Standard License holders aren’t required to drive their own cabs, and the license can be leased or transferred. This has led to individuals paying up to $250,000 just to get use of a standard plate. As a result, taxi drivers often work long hours trying to cover the cost of their license, before even thinking about their take home pay.

Uber takes the stance that they are a “technology provider” and are not required to obtain a permit or conform to licensing standards.

Why have two categories of ride hailing transport services, with one more regulated than the other?

One has been more vocal in opposition to the city’s proposal than Sajid Mughal, President of iTaxi Workers.

“Taxicabs are regulated for a reason: they carry our most valuable cargo, Human Beings. We cannot have the wild, wild west in the area of transporting vulnerable passengers.”

Sam Momi of the Toronto Taxi Alliane brings up some valid points that many might first overlook when comparing taxicab drivers with UberX drivers. Taxi drivers have been willingly and lawfully following city regulations for decades, regulations which Uber drivers feel entitled to neglect. Including:.

• taxicabs are equipped with roof lights, door numbers,
• City-sanctioned meters and in-car security cameras.
• Drivers are trained, carry commercial insurance, and have a police background check.

Taxi drivers pay thousands for their licences, must buy costly insurance policies, must undergo regular training and are governed by fares set by the city. As a result, they say, they just can’t compete.