Ottawa taxi industry considers options after city green-lights Uber
Drivers say they will flout rules, while cab companies consider new business models
Representatives of Ottawa's taxi industry say they are trying to figure out their next move after yesterday's decision by city council to legalize app-based ride-hailing services like Uber.
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Changes approved at city council yesterday created a new category for companies like Uber, while reducing licensing fees for traditional taxi drivers. A major sticking point was the decision that drivers under the new licensing category will not be required to have cameras in vehicles like taxis, which the taxi industry argues creates an uneven playing field.
Now taxi drivers who paid hundreds of thousands of dollars for their plates say their investments are now worthless.
Driver and plate owner Tony Hajjar — who angrily disrupted the council meeting Wednesday, likening Uber to a "criminal organization" — said he and many drivers plan to flout the rules as Uber has been doing since it arrived in Ottawa in October 2014.
"If they're going to come after us and charge us, I will accept the charges if they show me they have charged Uber drivers first."
Union mulling legal action
Amrik Singh, the head of the taxi union, said taxi drivers have no incentive to follow the rules. He confirmed the union is seeking legal advice.
Hajjar, however, wasn't holding out hope that a lawsuit could settle anything.
"No matter how successful you get in a lawsuit, nobody is going to win. Unless we get the exact price that we paid for these plates — but I don't see that happening," he said.
The city report passed yesterday addressed the possibility of the lawsuit. Lawyers told the city it would likely not be held liable for any economic losses plate owners experience on the grounds that purchasing a licence is a speculative investment and the municipality is under no obligation to maintain the street value of the plate.
Hanif Patni, the owner of dispatcher Coventry Connections, said he understands the frustration of drivers and plate owners.
"They've just had all their houses taken away from them — that's what their plates were worth in a supply-constrained economy that was set up by the city — and for them to pull the rug... of course they would be livid!"
Coventry considers reduced fares
But while Patni is also considering his legal options, he said the challenge for him is to change the business plan.
"We have to make a livelihood and we have to show people in Ottawa that the taxi industry has some distinct advantages that our competitors don't," he said.
He suggested he wanted to work with drivers to come up with alternative pricing schemes, and floated the idea of allowing reduced fares for people using their app.
The changes passed yesterday allow taxi drivers to offer reduced fares through pre-arranged rides on an app.
"Now I'm not suggesting we go there... but we will be having those discussions with our drivers. If we want to reduce rates on the app, we might just do that."