B.C.'s ride-hailing restrictions will stall service, critics say

The fanfare surrounding the B.C. government's announcement about ride-hailing legislation has sounded a disappointing note for many, who say what's being promised is a watered down version of the service. 

Drivers for services like Uber and Lyft will need to have Class 4 licences to operate in the province, which means they'll have to undergo criminal record checks and medical fitness checks every five years.

The legislation also limits the number of ride-hailing cars on the road, and introduces stiffer penalties for illegal taxis and ride-hailing companies.

On the other hand, taxi and ride-hailing drivers won't need separate chauffeur permits for each city they drive in.

Concern over restrictions

But one critic in Vancouver's hospitality industry said ride-hailing only functions when it's free of restrictions.  

"It feels like time and time again no one from the government has ever been in a Lyft or ride share before ... because supply and demand is how this whole thing works," said Damon Holowchak, co-owner of the Donnelly Group, which owns several pubs in Vancouver.

Transportation consultant Victor Ngo said that as well as medical, security and safety checks, the Class 4 licence requires special insurance, which will likely limit the number of drivers. 

"One of the benefits of ride-hailing is it can attract different types of people, people who want to work a quick shift to make a few extra bucks, or want to be more full time. There is range of flexibility on what kind of positions they can take. With Class 4, it reduces that flexibility," he said.

Province 'limited by insurance'

But Transportation Minister Claire Trevena said supply won't be a problem, saying "those are some of the details that need to be worked out to make sure cars are available when they need them."

On Monday, Trevena declined to give an estimate for when ride-hailing vehicles might actually hit the streets in B.C., saying the province is "limited by insurance."

The Insurance Corporation of British Columbia said it will work with the government, the ride-hailing industry and the taxi industry to ensure a smooth transition.

"ICBC will be ready to deliver the blanket insurance certificate, that we anticipate will be usage-based, when the various detailed amended regulations are in place," the auto insurer said in a statement.

With files from Tina Lovgreen