Tag Archives: Alberta

Uber Forced to Play Waiting Game in Edmonton

Uber has said it will pull out of Alberta on Tuesday if the provincial government does not help the company to become legal in Edmonton. The city voted to legalize the UberX service last month, but Uber has been able to meet the agreed criteria for legalization because Albertan authorities will not amend bylaws to accommodate the company.

The stipulations involved UberX drivers agreeing to specific licenses, vehicle checks, and to having a sufficient and legal auto insurance policy. The latter of those presented Uber with the biggest challenge, but the company says it found a private insurance company willing to offer a policy. It is though that Intact Insurance was the provider, finalizing a collaboration started with Uber late last year.

“The insurance policy that we have is a commercial policy that works for ride sharing and quite frankly, doesn’t add any material costs to drivers,” Ramit Kar, Uber Alberta’s general manager, said.

Alberta originally said that it could not guarantee that Uber would receive its auto insurance coverage for the March 1 date which Edmonton set for legalizing the company. The finance ministry in the province released a statement last week that said:

“The Superintendent of Insurance has been involved in constructive discussions with Intact insurance,” the statement said. “The issue remains under review and no agreement been reached.”

Now Alberta has put a firmer timeframe on when a bylaw to accommodate Uber will be ready, with Transportation Minister Brian Mason saying the province had rejected Uber’s request to have the bylaw ready for March.

“It’s our position that people driving vehicles for commercial purposes are not using their vehicles for the same purposes as those with a Class 5 license,” Mason said.

“The bottom line is that the Class 4 requirement is essential for the safety of both passengers and drivers.”
While Toronto voted to regulate Uber, the company continues to operate while Ontario’s largest city prepares those bylaws. It is unlikely the U.S. ride-sharing service will continue in Alberta and has already said it could pull out of the market this week. Even if the city amends bylaws, it is not clear Uber would accept the changes. In Calgary last week the company rejected accommodating bylaw changes and decided to pull out of the city.

Uber has requested that the city of Edmonton postpone its bylaw until June 1st, which is after the province says it will have prepared a bylaw. Edmonton authorities have yet to respond.

Uber Rival Wants to Pounce on Uber Edmonton Departure

Uber says it will be pulling out of the Alberta market after failing to get a bylaw amendment from the province that would allow the company to become legal in Edmonton. However, while the industry leading ride-sharing company is on the verge of leaving the province, another smaller firm is looking to steal some of Uber’s thunder.
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A bylaw passed in Edmonton last month stated that UberX drivers would be legal if they had a bi-annual license, vehicle checks, and sufficient auto insurance. The company has since been unable to secure any of those things, with Alberta authorities saying any bylaw amendment is unlikely to happen until the summer.

As a response Uber is suggesting it will leave the province on Tuesday, Mar 1, which is when the Edmonton bylaw comes into effect. However, one company can benefit from Uber’s departure, with TappCar saying it is ready to take some of Uber’s Alberta market.

Like the UberX service, TappCar allows passengers to connect with freelance drivers via a smartphone application, and the company says it is positing itself for the lucrative Edmonton market.

“It will be very competitive with the Uber and the traditional taxi services,” TappCar’s Pascal Ryffel said. “We’re really hoping that people get behind us.”

It is unclear whether TappCar has the desired criteria to appease the city of the province, and the company is almost certainly going to be subject to the same bylaw rules as Uber.

Toronto could learn from Edmonton regarding Uber, says Mayor Tory

Edmonton became the first Canadian city to legalize Uber and the UberX ride-sharing service after a city council vote earlier this week. The move could be an example to other Canadian cities, including Toronto, which itself has already made moves to accept Uber. However, the council is still largely divided on ride-sharing companies in Canada’s largest city, but Toronto Mayor John Tory praised Alberta’s capital for its historic vote.

“What we are trying to do here is exactly what they have done, which is to fashion a bylaw which achieves a balance,” Tory said. “They’ve come up with one answer to that in Edmonton, which we can learn from.”

The city of Toronto was the first to vote favorably for Uber, agreeing to create regulations for the company in October last year. However, regulations and changes to the law that will accommodate UberX have not yet been created, and the U.S. based company has compounded the issue by continuing to operate in Toronto even though the council asked it to halt operations in the city until regulations are created.
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Tory said the challenge for the city is creating a bylaw and then having it passed through the council via a vote. There is still opposition to Uber in the Toronto City Council, with some members siding with the traditional taxi service in a confrontation that is continually looking like a pitch battle. Edmonton’s breakthrough this week could point Toronto in the direction it needs to go to accept Uber, with the Alberta city even getting Uber to comply to some rules.

Indeed, it seems Uber is willing to meet some stipulations if the company feels it is being accommodated by a municipality. For example, the San Francisco giant agreed with the city of Edmonton to stop operations in the area until it is legalized on March 1. It is a stark contrast to the Toronto situation, where Uber decided not to cease operating in the city while the council dallies over what to do next.

Tory has been critical of that stance, but he has voiced again that there is a way forward for the UberX service to be adopted in Toronto. Councillor Jim Karygiannis, a known supporter of the taxi service, is less enthused about Uber and says he is “very concerned” by Tory’s comments:

“I am surprised that the mayor this morning said that we should let council not decide, we should let the legal department decide if we have an injunction or not,” Karygiannis said. “I believe that it’s up to council to decide.”

Edmonton may have trailed a blaze and showed other Canadian cities a viable way to legalize Uber, but Toronto’s path to the same conclusion is expected to take longer. Indeed, a breakthrough may not come until the end of the year, which is when the Toronto licensing staff are expected to make recommendations on how the city could regulate Uber.