Uber driver expects business will boom when new regulations come into effect

Uber drivers are expecting a big boost to business now that city council has approved new regulations to legalize the ride-hailing service.

On Wednesday, council voted 8-4 to to create rules the controversial company can operate under starting March 1, provided the company's drivers are able to get legal commercial insurance approved by the province.

Uber drivers CBC spoke to said they anticipate business will boom once the company is operating with the blessing of the city.

"They will increase the number and increase the demand," said Uber driver Taddy Habtetsion.

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He said after March 1, he plans to buy a new vehicle and drive for Uber full time.

Part of the city's regulations demand Uber and companies like it have valid insurance before drivers pick up fares. Currently, no insurance package apply directly to Uber drivers. The company claims commercial insurance that covers taxis are too expensive for individual drivers. 

Uber is working with Intact Insurance on a solution, but the province hasn't approved it.

Habtetsion said the fact that drivers operate with their personal vehicle insurance is often cause for concern for his customers. He hopes once the issue is resolved, people will flock to Uber. 

Uber Alberta general manager Ramit Kar agreed a resolution of the insurance issue will improve customers' confidence.

"If people can feel safe, and they should already feel safe, then this hopefully should be a boon for the entire industry," Kar said.

A provincial spokeswoman said there's no timeline for a decision by the superintendent of insurance, though Kar said he's optimistic it will be resolved by March.

He said he expects the huge growth the app has experienced over the last year will continue once it's legal.

According to the company, 90,000 riders signed up to use the app in the last year.