As Toronto grapples with how its vast network of gridlocked roads contributes to climate change, a new policy agreed by local officials is receiving a mixed response.
On Wednesday, councillors passed a motion to freeze the registration of new vehicle-hire drivers, including with companies like Uber and Lyft.
The new policy means the number of drivers cannot rise above its current level — unless they’re driving a zero-emissions vehicle.
While local taxi companies and advocates welcomed the news, Uber itself hit back in a statement arguing the move will increase costs and wait times.
The ridesharing giant threatened to take the city to court, saying it was “reviewing all legal options.”
Uber said the cap on its drivers would “hurt the diverse group of Torontonians who rely on rideshare as part of their transportation mix and those who drive rideshare for additional income.”
Local taxi companies, on the other hand, say the policy brings parity in an industry they feel has favoured app-based companies since they arrived in Toronto more than a decade ago.
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“It was encouraging to see Mayor (Olivia) Chow stand up to big tech and challenge the status quo,” Kristine Hubbard, operations manager with Beck Taxi told Global News. “A cap on the number of vehicles is good for the environment and gets us closer to environmental goals.”
Others, including transit advocates, welcomed the decision, saying it could help restore ridership on Toronto’s public transit, which has struggled to rebound since the COVID-19 pandemic.
“We need to make sure ride-hailing complements public transit rather than replacing it,” Shelagh Pizey-Allen, from the advocacy group TTC Riders, said in a statement.
“This pause ensures we won’t repeat the mistakes of the past while work on a balanced framework for the sector moves forward.”
The cap for more drivers could be in place for as long as a year, while city staff assess the best options to move forward. Councillors asked for a comprehensive report on ridesharing, taxis and the emissions they cause to be completed by the last quarter of 2024.
The number of drivers will be capped at its Oct. 12, 2023, level until the report is completed.
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