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Uber debate continues as ride-sharing service celebrates 1st year in Toronto

TORONTO — Having been so widely accepted so quickly by Torontonians, it’s hard to believe that it’s only been a year since UberX arrived in this city — letting just about anyone with a car and a clean record essentially become a taxi driver.

Since its Toronto launch on Sept. 15, 2014, those who’ve used UberX seem to love it.

The taxi industry? Not so much.

READ MORE: City report recommends lowering taxi fares by $1

While customers enjoy the cheaper fares, the pros insist it isn’t a safe way to get around.

Uber Canada General Manager Ian Black remains endlessly positive though.

“We’ve grown to over a million rides every month, creating over 15,000 [employment] opportunities for drivers in the city of Toronto,” said Black, adding that all UberX drivers pass background checks before being cleared to participate.
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According to Uber’s own numbers:

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  • More than 4.4 million trips have been taken via UberX since launch in Toronto.
  • UberX passengers have travelled 34 million kilometres over the past year.
  • Collectively, UberX drivers have earned over $50 million.

The taxi industry takes particular issue with that last statistic, given that Uber is an American company.

“Somewhere between 20 and 25 per cent of that money is being taken right out of our country,” says Kristine Hubbard, Beck Taxi Operations Manager. “None of that has been paid to the city.”

By contrast, City Hall expects to bring in about $10 million from taxi licensing fees next year.

“We cab drivers, we have given millions of dollars to the city and we collect our taxes on time,” says Sajid Mughal, President of the iTaxiworkers Association.

READ MORE: Beck Taxi launches petition for more affordable fares in Toronto

The landscape could soon change for Toronto’s UberX fleet though.

On Wednesday the city’s Licensing and Standards Committee will consider a report from staff that recommends the creation of a new licensing category and fee for them; earning the city revenue from the service and bringing UberX within its system of bylaws.

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“It takes the model from U.S. cities and applies it here in the local context,” says Uber’s Ian Black. “We look forward to working with the city on this and we hope this recommendation passes.”

READ MORE: Nearly half of those polled support Uber in Toronto

It’s a proposal welcomed by some, but not all, in the city’s taxi industry.

A new survey conducted by Harris Poll for Beck Taxi says that 75 per cent of people familiar with UberX view it as a taxi service and not a technology or mobile app company.

All the more reason, says Hubbard, that it needs some form of regulation.

“People recognize UberX for what it is – a taxi service,” she said. “And Torontonians’ expectations around standards and safety when it comes to for-hire vehicles is quite high.”

Combined with a proposed $1 drop in the base taxi fare, the city hopes to level the playing field between taxis and Uber by the time the ride-sharing service hits year two.

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