As regulators and insurers across the country try to sort out how to deal with the ride-sharing service UberX, a Battle Royale is shaping up in the city of Toronto.
Tracy Cook, the City of Toronto’s executive director of municipal licensing and standards, said at a news conference that Uber X poses a risk to residents, and that anyone using the service does so at their own peril.
Tracey Cook, executive director of municipal licensing and standards, said at a recent news conference that the service poses a risk to the residents of Toronto, and users of the service do so at their own peril.
“Anyone driving as an UberX driver is doing so in violation of city bylaws,” said Cook.
Although it seems everyone is lining up against UberX, there is one powerful man in their corner in Toronto.
“Uber, and services like it, are here to stay,” Toronto’s mayor-elect John Tory said in a statement. “It is time our regulatory system got in line with evolving consumer demands in the 21st century. As mayor, I intend to see that it does, while being fair to all parties, respecting the law and public safety.”
Uber allows users to hail a private car or taxi from their mobile phone. UberX allows anyone to turn their car into a taxi — passengers can use the program to request a ride from any other UberX user.
The service is seen as a direct challenge to the taxi industry, which is required to pay a $300 brokerage licence and compliance with Toronto’s taxi bylaws.
According to CBC News, Cook said Uber has been operating in the city since 2012 and has committed at least 36 bylaw infractions in that time.
Calgary, Alta. has already banned Uber and Vancouver, B.C. is considering doing the same. (continued.)
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Bylaw officers in Ottawa conducted a sting in October and fined two UberX drivers, and future sting operations are anticipated
Montreal, Que. Mayor Denis Coderre has gone on the record stating that he believes UberX is illegal.
The Insurance Bureau of Canada wants brokers to remind their clients that personal car insurance won't cover them if they're in a collision or a passenger is injured – and that means they need to carry commercial insurance coverage.
“Every ride on the UberX platform in Canada is backed by $5 million of contingent auto liability insurance,” Uber’s Lauren Altmin told CBC News, “so drivers and the community at large can rest assured knowing that ride-sharing partners are covered by our insurance policy in addition to any insurance coverage maintained by the driver.”
In California, state laws passed in the summer say the ride-share companies have to provide $1 million of liability insurance for their drivers, even if they are still looking for a customer and don’t have a passenger in their car yet.
The Florida Office of Insurance Regulation recently said that Uber's $1 million commercial insurance policy meets state requirements.
The company's $1 million commercial insurance policy has been a major point of contention in the fight to bring the service to the Tampa Bay area. The Public Transportation Commission, which regulates for-hire vehicles in Hillsborough County, has opposed the ride-share company since its launch here in April, citing concerns about insurance and licensing, along with insufficient background and vehicle checks.
