No sign of Uber in St. John's, but city has eye on Edmonton model
CBC News | Posted: February 1, 2016 2:13 PM | Last Updated: February 1, 2016
Cheap rides come with consequences, says local taxi owner
The city of St. John's says a decision by Edmonton to legalize the ride request company Uber sets a model for other cities, but there's no sign of Uber coming to this market.
- Uber to be legal in Edmonton after city council vote
- Taxi business slows in St. John's as economy takes a turn
"What they have done [in Edmonton] is bring in a strong piece of legislation that creates a level playing field and I would want to see the same thing here if we ever venture down that road," said St. John's Deputy Mayor Ron Ellsworth.
"You can't have an unregulated system competing with a regulated system," said Ellsworth, who said issues like taxi licensing and insurance would have to be addressed.
"And I think what Edmonton has done is a good step forward, certainly a good model for anybody else in Canada to look at."
Edmonton is the first city in the country to legalize Uber, the company that has disrupted the taxi industry in hundreds of cities around the world by allowing consumers to order rides with their smartphones. The company hires drivers who use their own cars.
The new rules in Edmonton take effect March 1, and lay out rules regarding driver insurance and minimum fares.
Ellsworth said he's not convinced St. John's is big enough for Uber. He said the taxi business can be very slow as it is, especially during the winter months.
"So I would hate to see it happen where our regular taxi industry has got to muck through 12 months of the year when somebody can run in and run Uber for six months when it's time to make money," he said.
"It can't be a cash grab by a third party and not provide a service level to our consumers."
Taxi owner not impressed
"The market's not really here for Uber, no," said Albert Newell, the owner of Newfound Cabs. But "never say never," he said.
Newell wants to know who would regulate drivers if the company did come looking.
"Are they going to have police conducts, abstracts? Who's gonna drive what car?" he asked.
"Are they going to have taxi plates, gonna have taxi insurance? All that's regulated here in this city."
Newell said he keeps a log-in sheet, and that he knows where all his cars and drivers are at all times.
"I've been at this racket 40 years. I'm not going to just sit and let Uber come here and neither are the rest of the cab companies," said Newell.
"It's great for the underground economy," he said, but there could be consequences.
"How about an Uber car don't have no insurance, who's responsible?"