The Transportation Minister of British Columbia refuses to change legislation to allow operation of Uber in Vancouver: states legislation already allows ride sharing services to operate?

In a strange turn of events, the Transportation Minister of British Columbia, Mr. Todd Stone, has stated that he will not be making any changes to the legislation concerning the potential licensing of ride sharing services, such as Uber. Mr. Stone has stated that, within a “matter of time”, he expects Uber to be fully operational within Vancouver and that existing legislative frameworks should accommodate Uber:

http://www.cbc.ca/news/canada/british-columbia/uber-canada-calls-concerns-misinformed-1.3414689

The above noted article, however, also cites previous statements from Mayor Gregor Robertson and Councillor Geoff Meggs that the current legislation is not set up to handle a ride sharing service. It would seem as though both the Provincial and Municipal levels of government are accusing the other of not making it possible for ride sharing services to operate. Mr. Stone’s current stance also seems in opposition to previous statements by him that Uber drivers would require taxi licenses to operate:

http://www.cbc.ca/news/canada/british-columbia/uber-vancouver-to-get-undercover-government-checks-to-enforce-taxi-regulations-1.2821811

Perhaps Mr. Stone is suggesting that it is up to the city to create a licensing scheme for individual Uber drivers. The city of Vancouver has a long history of severely limiting taxi license numbers in the face of growing demand. As such, it’s unlikely they will be providing individual licenses to Uber drivers on a large scale. Meanwhile, Uber themselves have stated that they believe no process exists for ride sharing companies to apply for proper licensing:

http://www.theglobeandmail.com/news/british-columbia/bc-rejects-uber-request-to-revise-licensing-regulations/article28332937/

Uber’s future in Vancouver seems very uncertain, with both the Provincial and Municipal levels of government pointing fingers at the other for being responsible for any restrictions on Uber’s ability to operate within Vancouver.

Uber legalized in Edmonton.

Although Uber is operating in several Canadian cities, Edmonton has become the first to actually legalize Uber. Under the new bylaw, which legalizes Uber, both Uber and the individual drivers will have several obligations.

1. Uber will need provincially approved insurance;
2. Uber must register as a broker for “private transportation providers”;
3. Uber must pay annual fees totaling $70,000 and a fee of six cents per trip; and
4. Uber drivers will need a Class 1, 2 or 4 licence, a criminal record check, a city-issued driver’s licence and an annual mechanical inspection of their vehicle.

http://edmontonjournal.com/news/local-news/the-ins-and-outs-of-what-council-passed-for-uber-and-the-taxi-industry

The above fees and requirements seem aimed at covering basic municipal costs and protecting the consumer. From the perspective of a personal injury lawyer, a proper insurance policy is especially important to passengers when using a service like Uber, as your ability to collect on damages is typically limited to the size of the defendant’s insurance policy.

Where does this leave Vancouver? Currently, various municipalities in the Metro Vancouver area have expressed interest in allowing Uber to operate, but provincial laws prohibiting ride sharing prevent them from doing so. Things seem to be moving at a snail’s pace in British Columbia. In early December, Coquitlam, Port Coquitlam and Langley Township councils voted to ask the provincial government to reconsider the laws prohibiting ride sharing. Uber has yet to also actually apply to operate in British Columbia.

http://www.vancouversun.com/some+cities+want+uber+licensed+province+says/11589377/story.html?__lsa=e5e1-598f

Perhaps Uber’s legalization in Edmonton will result in movement by both the provincial government and Uber towards legalization in the rest of Canada.

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Not so fast: the City of Calgary may be stepping in to put a stop to Uber.

Uber, the popular ride sharing service, launched in Calgary on October 15, 2015 and was very popular with local residents. However, the City of Calgary’s official stance is that Uber is operating illegally and in contravention to several municipal bylaws. The City has applied to the courts for an injunction stopping all Uber drivers from operating. Failure to observe this potential injunction could result in jail time:

http://www.cbc.ca/m/touch/canada/calgary/story/1.3313216

It’s not a foregone conclusion that the City of Calgary will be successful in their application for an injunction. The City of Edmonton recently failed in its own application:

http://www.cbc.ca/news/canada/edmonton/uber-beats-city-s-injunction-effort-1.3020100

The City of Edmonton responded to this failure by proposing regulations for Uber drivers:

http://www.edmontonsun.com/2015/09/04/edmonton-unveils-bylaw-to-accommodate-uber

Under the City of Edmonton’s proposed new regulations, a separate class of drivers called “Private Transportation Providers” (“PTP”) would be created to accommodate Uber drivers. PTPs would still be forced to register with the city, but there would be no limit on the number of PTP licenses provided. The PTP class of drivers would have to meet the following criteria:

• Possess a Class 1, 2, or 4 provincial driver’s licence
• Undergo a criminal record check
• Receive a one or two year licence from the city
• Own a driver’s licence for two years or more
• Have proper commercial insurance
• Undergo a criminal record check
• Have an annual mechanical inspection of their vehicle

The bylaw has yet to be passed, but many taxi drivers are not happy. During a recent debate on the issue, several taxi drivers expressed their protest by removing their shirts and shouting at city officials:

http://edmontonjournal.com/business/local-business/taxi-drivers-plan-next-move-in-edmonton-uber-fight

However, not even these shirtless men could defeat the democratic process. The fate of the City of Edmonton’s proposed changes will be decided shortly via an upcoming vote. What does this mean for other cities, like Vancouver? If the City of Edmonton’s proposed legislation goes ahead, it could create a legal framework for other cities across Canada. The proposed criteria for Uber drivers do address many of the supposed safety concerns that officials in other cities and ICBC are using to justify their opposition to Uber.

Uber launches in Calgary. Is Vancouver next?

Uber has officially launched in Calgary, and, thus far, the response has been very positive:

http://calgaryherald.com/storyline/here-comes-uber-the-ride-sharing-service-launches-in-calgary-today

A few things might differentiate Calgary from Vancouver. Most notably, a cab licence in Calgary was only selling for $100,000 on the secondary market at the time Uber was launched. In Vancouver, the price of a cab license is about ten times that amount. Existing cab licence owners are, therefore, far more motivated to protect the value of their investment. Obviously this raises questions about a municipal government’s priorities. Do they owe any responsibility to a licence holder who has purchased a licence on the secondary market? Do those responsibilities override those owed to the general public?

Uber is cheaper than a cab, but it’s not just about the money. There are also safety concerns. When someone cannot find a ride in a cab, they are more likely to resort to alternatives like riding with a drunk driver. Calgary unlike Vancouver has the added pressure of extremely cold winters. There, finding a ride promptly can be the difference between life and death.

Last year, when Mayor Roberts was asked about Uber, he seemed to pass the buck to the Provincial government:

http://blogs.theprovince.com/2014/10/23/vancouver-mayoral-candidate-gregor-robertson-answers-questions-on-reddit/

Q: How do you see ride-sharing apps, like Uber, fitting within the transportation options we have in Vancouver?

A: Good question – Coucil just asked city staff to take 6 months and examine all options for improving the situation with taxis and new options like Uber. Keep in mind the BC government controls taxi licensing unlike US cities.

However, since then, the City of Vancouver city council has extended moratoriums on Uber:

http://www.straight.com/life/421066/uber-alternatives-promote-ride-sharing-vancouver

Most recently, Vancouver city staff stated they would need “zero to three months” before going back to City Hall with their recommendations:

http://www.cbc.ca/news/canada/british-columbia/uber-vancouver-city-council-1.3277785

For Vancouverites, the wait continues…..

New York judge rules that uber is legal and cab companies must simply compete with ride sharing services.

The law in New York state makes it illegal to hail a ride from the street from a vehicle without a proper license. The taxi companies were arguing that the use of a smart phone to arrange a ride was equivalent to an electronic “hail”. The courts, however, decided that this was not the case. Overall, the courts put the needs of the public, as a whole, over the concerns of the tax industry:

http://nypost.com/2015/09/09/city-judge-rules-against-medallion-owners-in-win-for-uber/

How does this compare to the situation in British Columbia and Vancouver? Like Vancouver, New York has issues with the cost of taxi licenses spiraling out of control. The price had peaked at around $1,000,000 USD per license, but, since the introduction of Uber, had fallen to around $700,000 a license. These prices are comparable to Vancouver. Although license owners who have paid the high rates deserve sympathy for any losses they incur, something should be done about the extreme prices and a correction in the price of Vancouver area taxi licenses is in order.

How New York City differs from Vancouver is that Vancouver is a rapidly growing city. The population of metro Vancouver is about 2.5 million and has grown by about 1,000,000 since 1990. The population is expected to reach about 3.5 million by 2040. The spike in taxi license prices is largely the result of a reluctance by the city to issue more licenses despite rapid population growth. Vancouver’s rapid population growth combined with a shortage in taxi licenses means that Vancouver is more likely to absorb the introduction of a new service such as Uber when compared to a city like New York City with a relatively developed and stagnant population. In other words, since Uber has been found to be a success in a city like New York City, there is no reason it can’t work in Vancouver too.

Another potential hurdle to Uber in Vancouver? Class action lawsuit filed in Ontario.

A class action lawsuit has been filed against Uber on behalf of Ontario tax drivers:

http://www.cbc.ca/news/canada/toronto/uber-faces-class-action-lawsuit-filed-on-behalf-of-ontario-taxi-drivers-1.3165465

The law suit is seeking over $400 million in damages and an injunction preventing Uber from operating in Ontario.

Although law from other jurisdictions is not binding on courts in British Columbia, the courts will most certainly take these rulings into consideration. The results of this case are, therefore, likely to have implications across the rest of Canada. That being said, this is not the first time that Uber has run into legal trouble. Just a little under 2 months ago, the Ontario Superior Court ruled that Uber was not a akin to a taxi service and dismissed an action brought by the City of Toronto:

http://www.theglobeandmail.com/news/toronto/toronto-request-to-shut-down-uber-dismissed-in-court/article25273958/

That, however, did not end Uber’s run in with the city. The City of Toronto has pledged to both legislate and have meetings with both Uber and the taxi companies to come to a “mutually agreeable solution”. If this were Vancouver – where lobbyist from the taxi company have limited supply and forced prices for taxi licenses to spiral above the 1 million mark – I’d have little hope for Uber in any such agreement. In Toronto, however, taxi licenses have now fallen to the $100,000 mark:

http://globalnews.ca/news/1780260/toronto-taxi-licence-prices-are-plummeting-is-uber-to-blame/

The taxi drivers in Toronto may have a genuine grievance.