CALGARY – It’s official: Uber is setting up shop in Calgary.
The ride-sharing program uberX will launch at 2 p.m. on Thursday, allowing Calgarians to connect with drivers through a smartphone app.
The company made the announcement just over a week after Mayor Naheed Nenshi warned there was “very little” to stop Uber from entering the market.
READ MORE: Nenshi warns there’s ‘very little’ to stop Uber from entering Calgary
The company claims uberX rides are 30 per cent cheaper than a traditional taxi ride.
According to Uber Alberta, there are over 500 freelance drivers signed up to provide service. In addition, the company will offer two free rides to those new to Uber (on fares up to $20) until midnight on Oct. 18.
READ MORE: Uber is forcing Canadian cities to re-evaluate the way we take cabs
In 2013, the company offered Calgarians a trial of their services for a $5 donation to the Calgary Foundation. It was Calgary businessman and entrepreneur Brett Wilson who was given the honour of taking the city’s inaugural Uber trip. On Thursday, he joined Uber in downtown Calgary to serve as their first official customer.
“I’ve probably had 100 Uber rides in my life,” said Wilson. “It’s just everywhere, and so for Calgary not to have it is a big gap in the transportation tools. And I call it a time saving tool, because that’s what I use it for.”
WATCH: Brett Wilson talks about his first Calgary Uber ride
CLICK HERE for information on uberX’s Calgary launch, and details on how to download the app.
City of Calgary to ‘actively enforce’ Uber drivers with fines up to $4,500
The City of Calgary warned potential Uber patrons on Thursday that there are risks associated with participating in private for-hire vehicle services.
“The Livery Transport Bylaw does not allow unlicensed private for-hire vehicles to operate in Calgary due to a variety of public safety concerns. These concerns include a lack of vehicle inspections, driver background checks and the risk of inadequate insurance coverage,” said a City of Calgary news release.
“Citizen safety is the primary objective as the City works to provide transportation options that meet the needs of Calgarians and our visitors,” added manager of compliance service Marc Halat.
“By taking this service, you put yourself at risk.”
READ MORE: Province warns Albertans about using ride-sharing services such as Uber
Halat said bylaw officers will be “actively enforcing” Uber vehicles operating within the city, as they are not licensed by the City of Calgary.
“We do have a bylaw; if these vehicles are operating and they are in contravention of that bylaw… we will enforce the bylaw.”
Drivers could face fines from $1,500 to $4,500. Passengers would not be fined.
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City council previously rejected a proposal to get rid of restrictions placed on limousines and luxury sedans in Calgary, a move which could have paved the way for Uber to bring its black car service UberBlack to the city.
Instead, councillors asked administration to brainstorm ideas to help regulate ride-hailing services like Uber, which would be discussed at a Nov. 16 strategic planning meeting.
“Despite this direction from council, Uber has chosen to launch its service in Calgary before council has had an opportunity to consider any options,” said a news release from the city.
“We have a mandate with council to come back with options, and we will do that on November 16,” added Halat, who said he was disappointed that Uber had jumped the gun.
“That said, it was Uber who called me at 8:30 this morning, and reached out to continue working with us. I think that says volumes.”
Halat said Calgary cab drivers will be “extremely angry” with the launch of Uber.
“At the same time, this is not foreign to them… they knew it was coming.”
Nenshi ‘disappointed’ with Uber
Mayor Nenshi released a statement on Thursday saying he was “disappointed” that Uber had decided to launch without “adequate insurance or regulations to protect public safety.”
“I strongly suggest that you don’t drive for Uber and that you don’t use Uber until the insurance and regulatory issues are sorted out,” said Nenshi. “If you drive for Uber, you should be aware that you are breaking the law.”
CLICK HERE to read Nenshi’s complete statement.
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