Drive for Uber and risk fines and losing your insurance, city says

The city has issued a stern warning to Hamilton Uber drivers that they risk fines of $5,000 and losing their car insurance if they’re caught driving for the service.

On Wednesday, the ride-sharing service held an open house to recruit potential drivers. But those drivers will be subject to harsh penalties if they sidestep the city’s taxi regulations, the city said in a statement on Thursday afternoon.

The company says it has “no definitive plans at this time” to open in Hamilton, spokesperson Xavier Van Chau told CBC Hamilton on Wednesday. It’s just “analyzing the market.”

It’s a market where taxicab drivers, owners, brokers and vehicles have to be licensed in the city of Hamilton, the city says. And the city’s rules for drivers are different from Uber’s rules.

“We share the opinion of other municipalities that Uber would be operating as a taxicab service,” said Ken Leenderste, director of licensing, in a statement Thursday.

“As such, they are required to register with the municipality as a broker and are subject to the same provincial and municipal regulations – and penalties – that ensure consumer protection of residents and visitors, and ensure the health and safety of passengers and drivers.”

City regulations apply whether the trips are pre-planned or on-demand, Leenderste said, and it doesn’t matter if they’re arranged through a dispatcher or an app.

Taxi vehicles in Hamilton can’t be more than six-years-old (the Uber policy is that cars must be 2005 or later models) and need proper taxi insurance. The city also requires semi-annual or annual inspections, on-board GPS, emergency lighting and a safety standards certificate.

Cabs also need on-board cameras and computers that determine fares, which is key for passengers, the statement said.

If the city catches an Uber driver, it can lay 17 charges on the spot that amounts to $4,725 per incident, as well as a court-imposed victim surcharge or about $800.

It will also notify the driver’s insurance holder.

“The critical message in all of this is public safety: travelling in a taxicab that is properly licensed by the City of Hamilton means there is a trained driver, insurance coverage and a vehicle inspected for mechanical fitness,” Leenderste said

The city said this week that it’s willing to take legal action if Uber enters the market and doesn’t follow the rules.