Uber’s roughshod move into Ottawa’s taxi market has rewarded the international ride-ordering company with legal status in the capital.
After operating illegally on Ottawa streets since October 2014, city council on Wednesday voted to create a dual licensing system with different rules for the taxi industry and alternative ride companies like Uber.
One angry cabbie yelled at council after the vote as he was ushered out of chambers.
“I can’t believe the city is ruining our lives,” he bellowed.
The new bylaw comes into effect Sept. 30. Uber has said it will continue to operate in Ottawa until then. The city will continue ticketing drivers.
“For the first time, there will be competition,” Mayor Jim Watson said. “It will make the industry better and it will give the public what they have been asking for.”
Council tweaked some of the bylaw provisions.
Rideau-Goulbourn Coun. Scott Moffatt won support to mandate the minimum insurance coverage at $2 million for both cabbies and Uber drivers. The city’s legal department recommended $5 million coverage, but the city’s consultant KPMG recommended $2 million.
“This is not just to help one side. This will help taxi drivers as well,” Moffatt said.
Moffatt also notched a win convincing council to make four new taxi plates released by city hall non-transferrable. Existing city-owned plates can be traded for large sums on the open market.
Other councillors had their suggestions shot down.
West Carleton-March Coun. Eli El-Chantiry tried to convince council to require cameras in Uber cars. Council voted against it but agreed with River Coun. Riley Brockington to reconsider cameras after a year of the bylaw being in force.
Beacon Hill-Cyrville Coun. Tim Tierney asked to make the maximum age of taxis and Uber cars eight years old, instead of 10 years old as recommended by staff. A tied vote means the 10-year maximum age stands.
The city is creating a “private transportation company” licence category, where companies in that category will have to pay a licence fee to the city. For a company the size of Uber, it will be $7,253. Companies will pay an 11-cent commission per ride to the city.
Traditional cabbies will see the cost for standard taxi licences go from $170 to $96.
The city is getting rid of the $1.50 fee for taxi customers paying with credit and debit cards.
Nearly 50 people spoke in the first half of a two-day community and protective committee last week. Most were cabbies pleading with councillors to protect the taxi industry from Uber.
Several uniformed and plainclothes security were in and around council chambers Wednesday as politicians debated the report recommendations. Uber supporters in the gallery wore pink “Uber creates jobs” T-shirts, marking the anti-bullying Day of Pink. Uber’s Brett Chang was in the hall, handing out shirts to passerby.
Gloucester-Southgate Coun. Diane Deans said the public has sent a message to the taxi industry challenging cabbies to innovate and compete.
“Carpe diem,” Deans told the taxi industry.
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