Brokers may want to celebrate a new recommendation by regulators in the U.S. – and call for Canadian ones to follow suit.
Two administrative law judges in Pennsylvania have put forth a proposal to fine Uber a record $50 million for its refusal to cease operations in the state, despite its violations of commission rules, according to the
Associated Press.
The judges, who help oversee the bus and taxi industry, refer to a six month period when Uber Technologies Inc. provided ride-sharing services in Pennsylvania even though it had not received approval from the Public Utility Commission.
During that time, Uber drivers were involved in nine separate auto collisions – which may likely lead to disputed insurance claims.
Each party has 30 days to respond, but if the decision is issued, it will be the largest fine ever issued by the state agency.
"Uber took a more active role in providing transportation service than simply providing the Uber app for people with cars to use to provide rides for people who need transportation - it was not a disinterested invisible entity in the background," wrote judges Mary Long and Jeffrey Watson.
Although Canadian courts may not take such an activist role anytime soon, KPMG has drafted a policy paper containing possible solutions for Ottawa to consider. They include:
- Revising taxi standards to incorporate Uber app-like features into their own services
- Create a new “Transportation Network Companies” licensing category which would legalize Uber drivers, so long as they undergo background checks and attain proper insurance coverage
- Allow for unlimited taxi plates
The City of Calgary seems to be the closest municipality to legalize ride-sharing, as staff members are drafting a bylaw that would bring it into compliance. While Uber representatives admit that it suffers from insurance shortfalls, it does not feel that they’re insufficient enough to warrant concern.
“We’re working with the provincial regulators to make sure that there’s Canada’s first ride sharing specific insurance policy that’s being put out,” Ramit Kar, general manager, Uber Calgary, told
660 News. “But right now, we do over a million rides a month and Canada, and every single time our insurance process has worked out,”
