In late 2014, Uber began advertising for drivers in Winnipeg, alerting consumers to the ride-sharing service’s possible expansion into Manitoba.
While the mobile app’s leadership has not announced any official plans for the province, representatives from the company have met with Manitoba’s deputy minister for municipal government and reports speculate that Uber may enter the market at any moment.
Although some consumers are celebrating this possible move, the technology company may need to clear some insurance hurdles first, beginning with car registration.
“Taxis in Manitoba pay a higher premium than passenger vehicles,” said Manitoba Public Insurance (MPI) spokesperson Brian Smiley. “If a driver becomes involved with Uber and begins picking up passengers and collecting money for that, it could be viewed as a taxi.”
The disparity between these premiums is noteworthy. While passenger vehicles typically pay $1,200 to be registered in the province, traditional taxis face fees that can reach $7,000.
As a result, Uber drivers could face several repercussions for not abiding by MPI regulations.
“It would have registration implications if they are not paying the premiums they should be,” Smiley said. “If one did get into a collision, the claim could be denied because the driver didn’t properly register the vehicle.”
Taxi drivers pay a higher premium because they have prolonged exposure to risk due to automobiles being on the road for countless hours at a time.
Uber drivers may face legal liabilities as well, since Manitoba’s Taxicab Act mandates that no drivers can serve as a taxicab operator without a license, and violations can result in fines of up to $500 on the first offense and $1,000 for each thereafter.
Uber is currently available in 55 countries, although cities ranging from New Delhi, Geneva and Los Angeles have all instituted bans on the service. The company has gone on record as stating that it believes, “Winnipeg legislators will see the benefits of Uber and embrace it."
