City proposing new licensing class for services like Uber, relaxed rules for taxis

Long-awaited guidelines for the ground transportation industry include a new licensing category for ridesharing services like Uber and relaxed rules for conventional taxi brokerages and drivers.

The guidelines, which will be considered by the city’s licensing and standards committee on April 14, propose creating a new licensing class for companies that “facilitate transportation services for compensation using software.”

Services like Uber would be allowed to operate under the “Private Transportation Companies” designation, provided that drivers undergo criminal and driving history background checks, have a vehicle that has four doors and is no more than seven model years old, possess automobile liability insurance of at least $2 million and notify their policy provider that they intend to use their vehicle to pick up fares for a PTC.

The regulations also forbid drivers who are working for a PTC from picking up passengers on the street or “having a roof light or any markings” that could make their vehicle look like a taxi.

Furthermore, the regulations stipulate that PTC’s have commercial general liability business insurance with coverage of at least $5 million. In order to register as a PTC, eligible companies will have to pay a one-time fee of $20,000.

“There are currently more than 45,000 trips per day taken by the public in unregulated vehicles-for-hire. Appropriate regulation governing this industry is a critical public safety matter. The development of this new regulatory framework ensures that these vehicle-for-hire participants are regulated, as are taxicabs and limousines, balancing the city’s regulatory interests with existing industry practices,” Director of Municipal Licensing and Standards Tracy Cook said in a staff report outlining the proposed regulations.

Relaxed rules for taxis

City council asked that Cook draft the regulations in September amid growing unrest from taxi drivers who said that Uber was threatening their livelihood.

In addition to introducing a new regulatory framework for services like Uber, the guidelines also remove many of the rules and regulations that were previously in effect for the taxi industry.

Notably, taxi drivers will no longer have to complete initial and refresher training programs to obtain and maintain a licence. Drivers will also no longer have to have a “command of the English language as a condition of licensing” or undergo CPR and First Aid training.

Several rules governing the types of vehicles that can be used as taxis have also been scrapped.

No longer will taxis have to be “low emission/hybrid vehicles” or be outfitted with winter tires. Instead, the city will only require that vehicles used as taxis have four doors and are no more than seven model years old, which is the same regulation that would apply to PTC’s.

The guidelines also give brokerages more flexibility when it comes to pricing, permitting taxi companies to offer rates that are discounted from the city-regulated fares to passengers who book their trip directly with them.

“These recommendations are enabling operation flexibility beyond what the taxi industry has had in the past,” Cook told reporters at city hall on Thursday. “Our goal here is to make it easier to operate and not be the regulatory burden that the taxi industry has had.”

Taxi industry critical of proposed guidelines

Following the release of the guidelines, Uber Canada released a statement crediting staff for “working diligently to find accommodation for all parties in the ground transportation market.”

Mayor John Tory also released a statement, noting that the guidelines would “create a level playing field” while “providing safe, convenient options to our residents.”

At city hall, though, representatives for the taxi industry condemned the proposed guidelines.

“This is not the even and level playing field that we were hoping for,” Toronto Taxi Alliance Spokesperson Sam Moini said. “Just by looking at this, I don’t think there will be a taxi industry (if the guidelines are approved). Drivers won’t be able to make a decent living.”

“The livelihood of longtime drivers is now at risk,” Mohammed Mirza, president of the Bangladeshi Taxi Drivers Association, added. “Uber is doing the same business. We don’t need a new licensing category.”

Representatives for the taxi industry have long said that Uber drivers should be held to the same regulations that they are but the guidelines proposed by Cook stop short of that.

Among other differences, the guidelines outline separate licensing fees for Uber drivers and taxi drivers and allow services like Uber to set their own fares, providing that they “clearly and transparently communicate” the amount that will be charged. Uber drivers will also be allowed to get their vehicle inspected at any city-run garage while taxis will still be required to pass a semi-annual inspection at a city-run garage.

“It is deregulating the industry. I think we are moving back in time instead of moving forward,” Moini said. “All those reforms that were done were done to better the industry and better the service we provided. Now they are being washed away.”

Council has final say

The proposed guidelines would have to be approved by both the licensing and standards committee and city council before going into effect and on Thursday a number of councillors were already hinting at a protracted battle.

“Uber’s arrogance and complete disregard for city to regulation to date has been successful. Instead of leveling the playing field we dropped the floor and we completely caved to Uber. I am shocked by it frankly,” Coun. Janet Davis said.

“We are allowing Uber to get away with murder. No licensing, no marking, no plates, nothing. We have absolutely no oversight,” Coun. Jim Karygiannis, who sits on the licensing committee, added.

Licensing and standards committee chair Ward 17 Cesar Palacio also weighed in, telling reporters that the guidelines "don't go far enough to create a balanced and level playing field."

The report will be considered at next Thursday’s licensing and standards committee meeting.

A number of deputants from the taxi industry are likely to speak at that meeting.

Taxi drivers could welcome Tory back to T.O.

The city’s top politician could be in for an unexpected airport pickup when he returns to Toronto from his current business trip to Asia.

Speaking with CP24 Thursday, a representative for the city’s taxi industry hinted that drivers may be waiting at the airport to thank Mayor John Tory following the release earlier in the day of the guidelines for the ground transportation industry.

“We may go there and welcome him,” Sajid Mughal, with the iTaxiWorkers Association said.

“Thank you for such a good job – getting rid of all safety measures for accommodating who? One app company?”