The launch of ride-hailing company Uride in Fredericton, NB has been delayed due to issues with their drivers’ insurance coverages.
Uride originally announced that it would start operating in Fredericton before the holidays, but nearly four months have passed since and the company still does not have enough drivers to launch. According to Uride founder Cody Ruberto, the problem lies with New Brunswick’s insurance requirements.
"It won't work the way that it's currently set up," Ruberto told CBC News.
The New Brunswick Financial and Consumer Services Commission has required that drivers who sign up for ride-hailing services advise their insurer. Those insurers, in turn, are allowed to refuse coverage, amend the driver’s policy, or charge a higher rate. The regulator also mandated that insurers are within their right to require a minimum number of driving years in Canada as a prerequisite for insurance.
Ruberto pointed out that his company has reached out to multiple insurers, and only a couple were offering the provincially-required coverage. These policies had premiums much higher than average and had a requirement that the driver must have at least six years of driving experience in Canada.
In an online notice from Uride, the company said that the limited insurance offerings have “discouraged many of [its] applicants to continue with the process.”
Ruberto told CBC News that over 300 people originally applied to become Uride drivers in Fredericton, but only 10 have adequate insurance coverage. It will take the ride-hailing company between 30 and 40 drivers to start operating. The founder also noted that many applicants do not have the required Canadian driving experience since they are newcomers to the country.
CBC News reached out to the Department of Justice and Public Safety Motor Vehicle Branch for inquiry on the matter. The news outlet was then referred to the Financial and Consumer Services Commission and Opportunities New Brunswick, which said that it is not looking to make changes to insurance requirements for ride-hailing service drivers.
