Should the city reach out to Uber first? Councillors decide next week

Checking-in on ride-sharing service Uber X, Drones and Raju the elephant - Dec 4, 2014 27:30

Hamilton city councillors will vote next week to try to meet with Uber, a ride-sharing company rumoured to have its sights on Steeltown.

Councillors will vote whether to have licensing staff set up a meeting with the controversial company, which uses an app to connect riders with drivers.

The San Francisco-based company is in the midst of a broad expansion throughout Canada and the U.S., and tends to show up in city's with little notice. It's already in Montreal and Toronto, and the latter is seeking a Superior Court injunction to stop the service from operating there.

Coun. Sam Merulla says he wants to be "proactive" in asking the company about its intentions.

"I'm not in favour or against Uber," said Merulla, who'll introduce the motion at the general issues committee on Wednesday.

"My position is simple: we need to invite them in, in case they have a business plan that includes Hamilton."

Uber has drawn criticism beyond Toronto. Taxi drivers protested throughout Europe this year, clogging streets in London, Berlin, Madrid and Paris.

Hamilton taxi drivers share that ire, arguing that they face pricey operating, safety and insurance standards that Uber does not.

Merulla wants an Uber that would adhere to provincial and municipal licensing standards, protect public safety and be fair to the taxi industry.

But the app has drawn criticism for not adhering to the same licensing standards as the taxi industry. Drivers can set up shop without a taxi license. The company itself screens its drivers for driving records and criminal background checks.

"I would probably use Uber for convenience sake, but I wouldn't send my kids to school in it," Merulla said. "That part of the equation is what I need to get a handle on."

On Facebook, Uber said it's looking to expand to new markets. But in a statement to CBC Hamilton, it wouldn't say whether Hamilton was one of them.

Uber 'always prepared to work together'

"We are always prepared to work together in moving forward with policy makers and regulators to develop guidelines that promote more transportation options and ensure public safety," spokesperson Xavier Van Chau said in an email.

"The Competition Bureau has supported ride sharing and digital transportation network services while differentiating them from traditional taxi services in Canada.

"Uber agrees with their view that new transportation options — such as Uber — offer better prices, convenience and service to customers and should be codified with their own sensible regulations."

Blue Line Taxi's concerns "are the same as most cab companies worldwide," said president Anthony Rizzuto.

"We're under extreme scurinty when it comes to insurance parameters and safety parameters when it comes to our vehicles," he said. "Under the radar of all that criteria, it makes it an unlevel playing field."

Uber works in certain cities, but not in Hamilton, he said. Many passengers have disabilities or mental health issues, and local cab drivers are trained for that.

Provincial bill would boost fines for drivers

Uber also doesn't specify whether the passenger needs an accessible vehicle, he said.

Hamilton cab drivers pay insurance rates of about $1,000 per month per vehicle, he said.

"We're definitely watching it," he said of Uber. "I know there's a lot of talk in bigger cities where it's a little more prevalent. There are differences city to city when it comes to the taxi industry."

Ottawa South MPP John Fraser tabled the Protecting Passenger Safety Act on Thursday, which would boost fines for unlicensed drivers picking up riders.

The general issues committee, which meets at 9:30 a.m. on Wednesday, will be the first of the new term of council.

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