Ottawa's plan to legalize Uber creates '2-tiered system,' taxi industry claims

Mayor Jim Watson has thrown his support behind a city plan to legalize app-based ride-hailing services such as Uber even as leaders within Ottawa's taxi industry argue it would create a "two-tiered system."

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Amrik Singh, head of Ottawa's taxi union, and other leaders met with Watson this morning to express disappointment over the plan, which was announced Thursday at the end of a lengthy taxi bylaw review. 

"We conveyed our message that we are not happy at all. We think the report is written to please Uber," Singh said following the meeting. "There is no way we will ever accept a two-tiered system."

Watson said the plan willl "level the playing field" as it both reduces fees for traditional taxi drivers and introduces regulations for technology-based ride-hailing services.

I have every confidence that the traditional taxi industry will be able to compete fairly under these proposed regulations.- Ottawa Mayor Jim Watson

But Singh said differences include fare pricing models and varying overhead costs. He said Watson has asked him and other taxi industry leaders to submit proposed solutions to specific concerns to the city in writing.

Singh said union members will meet Monday evening to discuss their next steps.

Watson told councillors in an email that the city "struck the right balance" with its recommendations, outlined in a 116-page report.

"We need to take unnecessary restrictions off the taxi industry by removing long-standing grievances, and to allow it to compete and innovate," the mayor wrote. "I have every confidence that the traditional taxi industry will be able to compete fairly under these proposed regulations."

Uber Canada has called the city's proposal "fair."

Recommendations to be debated next week

Recommendations also include:

• Eliminating the $1.50 taxi service fee for paying with credit and debit.
• Eliminating the $820 Algonquin College taxi course for drivers.
• Reducing the taxi license fee by 40 per cent, and eliminating it altogether for drivers of accessible taxis.
• Allowing taxi drivers to offer reduced fares through an app.
• Increasing liability insurance from $2 million to $5 million for taxi drivers, while private cabs, such as Uber, would also need $5 million liability insurance.

The city also recommends that private cabs only be able to offer pre-arranged rides through an app, and not be permitted to accept cash payments or pick up passengers who hail them on the street.

Surge pricing, meter caps remain

But while Uber drivers will still be allowed to increase their prices when the demand is high — so-called surge pricing — traditional taxi drivers will remain limited by their meters to an approved rate, and will only be able to offer reduced fares if they're negotiated through an app prior to the ride.

"Let them open the meter for everyone," said longtime licensed taxi driver Tony Rizd. "Let me do deals with the customer."

The city's plan leaves his future as a cab driver uncertain, Rizd said.

"I am worried about continuing my job when there will be a flood of cars on the road. How will I continue?" he said.

The recommendations are set to be debated at a committee meeting next week. If approved, the recommendations will head to council for review and final approval on April 13.

If they receive the green light, the new regulations will come into effect June 30.