Mississauga bans UberX, similar ridesharing services within the city

Mississauga city council has voted unanimously to ban UberX and similar ridesharing services in the city.

In a 10-2 decision Wednesday, councillors voted to suspend UberX services throughout Mississauga — the company’s controversial cheaper service.

Mississauga Mayor Bonnie Crombie said in a statement that Transportation Network Companies (TNCs) such as UberX can operate under the public vehicle by-law, but need to register as brokers and provide services like every other taxi cab company in the city.

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If drivers continue to drive within Mississauga city limits in violation of by-laws, Crombie said they will be subject to “all enforcement measures under the law.”

But if ridesharing services such as UberX agree to immediately cease operations in the city, a committee would be struck to develop a pilot program in September to allow them to exist under a new regulated framework.

Council also said the controversial service could continue if drivers adhere to the same rules as traditional taxis.

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“We cannot bury our heads in the sand, but must recognize new technologies and industry trends,” Crombie said in a statement.

“By proposing the creation of a pilot program today for TNCs, I think we will signal that we are willing to embrace change.”

A spokeswoman for Uber Canada said in an emailed statement that the company is reviewing the council vote.

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Heath declined to comment on what the regulations would mean specifically for drivers from cities that allow UberX, such as Toronto, who enter city limits or whether the service will cease operations in Mississauga immediately.

In Toronto, councillors voted 27-15 last Tuesday in favour of new rules that would allow ridesharing companies to operate within the city.

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The regulations allow ridesharing services to operate without cameras or flashing emergency lights, saw base fares increased from $2.50 to $3.25 and allowed taxis to adopt “surge” pricing for rides booked by a smartphone app.

The bylaw also requires taxis, limousines and PTCs to be inspected twice a year with ridesharing services having to pay a set minimum of insurance.

Toronto lost an attempt to ban Uber last year after a Superior Court judge ruled the transportation company was operating within city bylaws.

With files from David Shum