The head of a Canadian ride-hailing service says he’s been trying to expand into New Brunswick but insurance rules in the province have made getting drivers difficult.
New Brunswick altered its Motor Vehicle Act towards the end of 2020 to allow businesses like Uber and Lyft to operate within the province – once municipalities had relevant bylaws in place.
Fredericton passed a bylaw the following April, and Saint John’s city council will review its version on Tuesday.
Even with the capital city open for ride-sharing, none of the major players have set up shop.
But apparently, that’s not for lack of trying.
“At first it was just about getting enough drivers,” says Uride founder and CEO Cody Ruberto, “but then we ran into a major hurdle that we hadn’t run into anywhere else.”
Ruberto started Uride in his hometown of Thunder Bay, Ont., and has since expanded into seven additional cities across Ontario.
He says he’d hoped to be operating on the streets of Fredericton by the end of 2021 but many interested drivers haven’t been able to get cleared by their insurance providers.
“In Ontario, we cover drivers from the moment they open their app to the moment they close their app,” Ruberto says.
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“In New Brunswick, we only cover drivers from the moment they pick up a ride to the moment they drop off the ride, so there’s this period where they’re online but not on a trip that they have to add Endorsement 45 to their policy,” he says.
Endorsement 45 (or NBEF No 1-45 Restricted permission to drive for an insured transportation network) is essentially a specific amendment to one’s car insurance policy that amounts to the provider giving permission to drive people around for money.
Without it, you’re not covered under a standard policy while shuttling paying passengers around.
Ruberto says he has 300 interested drivers in Fredericton alone but only 10 have been able to get that endorsement.
He says Uride has spoken to numerous insurance companies and only two seem to be offering the required coverage – with higher premiums and the requirement of six years of driving experience in Canada.
“It’s really frustrating for a lot of people,” says Ruberto.
“People literally have to cancel their insurance policy, go switch to another company where the rates may be higher.… It’s just been a huge roadblock.”
Ruberto says Uride is offering to temporarily cover the difference in premium for some who do switch providers.
He says he wants New Brunswick’s government to change the rules – eliminating the requirement for Endorsement 45 and allowing Uride itself to take on higher insurance costs and expand its coverage to hired drivers.
That outcome seems unlikely, with the province’s Financial and Consumer Services Commission (FCSC) saying the requirement won’t be changed.
“We hope Uride can get their problems resolved because we’re being told that the required endorsement is readily available,” says David Weir, senior technical advisor for insurance with the FCSC.
Weir says New Brunswick’s rules around ride-sharing were drafted in conversation with other Maritime provinces.
Nova Scotia and P.E.I. have their own Endorsement 45s (known as NS No 1-45 Restricted permission to drive for an insured transportation network and PE – SEF No 1-45 Restricted permission to drive for an insured transportation network, respectively).
The rule didn’t stop Uber from beginning operations in Halifax in December 2020.
That company says it’s watching as cities across New Brunswick sort out their bylaws before moving in.
“We look forward to seeing public consultation results and how we can work with municipalities in New Brunswick,” an Uber spokesperson tells Global News.
It’s looking like Saint John will be the next city in the province to clear the way – with city council set to review a drafted bylaw pertaining to the matter on Tuesday.
Ruberto says he’s been in talks with Saint John as well as Moncton about bringing Uride there, hoping insurance snags can get cleared up before long.
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