TORONTO — Critics and supporters of Uber were on hand at city hall Wednesday to lend their voices for and against a staff report recommending the creation of a new licensing category and fee for the controversial ride-sharing service.
The Municipal Licensing and Standards committee voted to pass on recommendations seven and eight that would see the possibility of UberX operating legally in the city of Toronto.
City Council would have the final say on that decision but the MLS committee also voted to lower cab fares by $1 and tighten bylaws for strict enforcement against the ride sharing company.
The decision, made late Wednesday afternoon, welcomed applause from taxi drivers sitting in on the meeting.
“With their relentless bullying of UberX drivers today, Councillor Mammoliti and Karigiannis are clearly out of touch with the vast majority of Torontonians who want smart regulations permanently welcoming ridesharing in this city,” said Uber Canada spokesman Xavier Van Chau.
“Uber remains committed to working on a regulatory framework for ridesharing with City Council that supports innovation and consumer choice as suggested by recommendations by City staff.”
Uber supporters staged a rally outside city hall and the taxi industry scheduled a press conference denouncing the new recommendations prior to the start of the meeting.
“What we see is a parallel taxi industry that is almost deregulated,” said Co-op taxi general manager Peter Zahakos Wednesday morning.
“You’re having a transition from the cab industry to Uber and that’ll lead to the death of the taxi industry.”
READ MORE: Uber debate continues as ride-sharing service celebrates 1st year in Toronto
Mayor John Tory told Global News prior to Wednesday’s meeting that he is hoping to reach a consensus so both parties can be satisfied.
“Why don’t we work together to develop those new regulations for Uber and the taxis, bringing Uber into the law and lightening the load on taxis, before we decide the changes aren’t fair,” said Tory.
“This report recommends that we go to the stage of actually changing the taxi regulations and reducing the load of regulations on the taxis and it spells out exactly in the areas in which you would do that.”
Councillor Giorgio Mammoliti, a vocal proponent for cab drivers against Uber, arrived to Wednesday’s meeting wearing a black band tied to his arm to illustrate what he called the death of the taxi industry.
“The taxi industry has played by the rules for so long in the city of Toronto has been undercut by a group of people who have decided they are going to elbow their way into the city,” Mammoliti said. “If this report goes through it is the death of the taxi industry.”
Kostidin Kostadinov , an UberX driver said he believed the company is here stay.
“It has to stay because the community is better this way,” he said.
“Everyone likes it and there’s only one part of the city that doesn’t like it and it’s the cab drivers. Please get over it. It’s the future.”
Uber has come under fire for questionable insurance policies but the ride-sharing service stressed that every ride is insured.
“Every UberX ride is covered by insurance,” said Ian Black, General Manager of Uber. “Drivers have their personal insurance and Uber holds insurance that sits on top of that.”
WATCH: Uber celebrated a successful first year despite contentiousness with cabbies in the city of Toronto. Mark Carcasole reports.
The report asks city council to approve the proposed creation of Transportation Network Companies (TNC) which would permit a business like Uber to operate in the city provided they meet tougher municipally imposed guidelines such as proof of adequate insurance to operate as a TNC, criminal background screening, driving record screening and motor vehicle inspections.
TNCs would also be subject to a licence fee on a flat-rate or per-ride basis.
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Uber Toronto General Manager Ian Black said the recommendations are a win for UberX drivers and its passengers.
“It takes the model from U.S. cities and applies it here in the local context,” said Black. “We look forward to working with the city on this and we hope this recommendation passes.”
VIDEO: Questions about regulation of UberX drivers arise following a report to lower taxi fares in Toronto
On the taxi industry side, the staff report is calling on the city to amend the Toronto Municipal Code and reduce the base entry fare by $1, from $4.25 to $3.25 effective Nov. 1 2015.
Still, taxi leaders say the TNC license will create a unique competitive advantage for Uber, reduce public safety and end Toronto’s taxi industry.
READ MORE: Nearly half of those polled support Uber in Toronto
“With the proposed creation of Transportation Network Companies, City staff are setting up an incredibly lop-sided system which would saddle law-abiding taxi drivers with onerous regulations and expenses while UberX drivers are allowed to skim off the easiest and most lucrative business,” said Sam Moini, spokesperson for the Toronto Taxi Alliance, in a media release last week.
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The taxi industry is calling for even tougher regulations for Uber in order to even the playing field and to create a one-tiered system instead.
“There’s no middle ground here. It’s either you have UberX or the taxi industry,” said Sam Moini of the Toronto Taxi Alliance. “They come in here and undercutting our prices.”
Tory said Uber is here to stay and working on a new set of regulations for the taxi industry will help drivers keep their jobs while ushering in a new form of transportation service.
“If everybody approached it in a practical, sensible way, we can work out a set a rules that will allow taxi drivers to make a living, which I’m interested in seeing them be able to do, protect the public and realize the fact that Uber is unlikely to go away,” said Tory.
VIDEO: New report recommendations frustrate cab industry in ongoing Uber feud
With files from Mark Carcasole
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