A new era in getting from A to B

Yesterday, Edmonton became the first municipality in Canada to allow ‘Transportation Network Companies’ like Uber to operate legally. We didn’t set out to be the first, but after more than a year of analysis and consultation, it was time to end the uncertainty. This new bylaw represents significant reform for our vehicle-for-hire industry, one that responds to a rapidly changing economy and increasing demands from Edmontonians for more choice and greater customer service. But behind the national headlines this bylaw generated, the discussion was complex and nuanced.

At the heart of Council’s debate on Wednesday was pricing, and specifically whether we should set a minimum and maximum price that private transportation providers (i.e. Uber) would have to charge in order to avoid predatory pricing and protect consumers from surge rates. In the end, Council voted to charge a minimum fare of $3.25, a signal that free rides would clearly be predatory, and opted to further re-evaluate the pricing structure in six months. For me, it was important that we make evidence-based decisions on what a ‘fair fare’ should be versus speculating what the right number is. When it comes to the vehicles-for-hire business in general, our data sets are woefully inadequate – and every good transportation decision should lean on good data. We will have a better window on this ‘new’ industry once that data starts coming in.

There is no doubt this bylaw will have a significant impact on the taxi business as we know it today. Taxi plate resale values will inevitably decline – in fact, we hear anecdotally that they already have corrected somewhat over the last year. Given this, some drivers may choose to leave the industry. But the thousands of other drivers – the ones who have been renting other peoples’ plates for 20 years – will now have more choice when they drive, how long they drive and for whom they drive. This bylaw is as much about choice for non-plate-owning taxi drivers as it is choice for consumers.

Yesterday’s changes usher in a new era for the taxi business, one of competition and value. While private vehicles-for-hire can and will surge their pricing, often to well above the metered rate, taxis will continue to offer passengers stable, predictable pricing – regardless if it’s 1am on New Year’s Eve. Taxis also have exclusive access to queue stands in entertainment districts and the right to pick up street hails – neither of which Uber will enjoy. My hope is that taxi companies will use this opportunity to rewrite their marketing plans and really, truly invest in the kind of technology needed to compete. Because they can.

For all the fanfare this bylaw has generated, yesterday’s vehicle-for-hire bylaw also serves some very practical purposes. It gives us a better enforcement tool to punish both drivers and companies who do not abide by the rules. It ensures we regulate the safety of these vehicles and – by demanding proof of provincially-appropriate insurance – that passengers and the public will be protected in the case of a collision. Fines for violating these rules are five times higher in the new bylaw, indicating how seriously council takes compliance for public safety.

One shared frustration on Council (echoed by me more than once) was that Uber did not enter this market fairly and forced Council’s hand. But whether it was Uber or Lyft or any other private transportation provider, this change was bound to come. The market, and our public, was demanding change. Our job – therefore – was to craft a bylaw that wasn’t in the best interest of any single company, but one that reflected a 21st century city. As I said yesterday, that means enabling rather than constraining competition, and enabling rather than constraining innovation.

4 thoughts on “A new era in getting from A to B

  1. Edmonton Telephones was a great source of revenue that was sold off by City Council. EPCOR was an example of a successful publicly owned utility that was dismantled by City Council. Taxi Companies pay a lot into city coffers for their licenses, which I am sure that Uber will not make up. Please think a little more about the public good and a little less about fattening private concerns.

  2. So stoked that this went through. I love Uber and will NEVER choose to take a cab ever again. I hope that The City keeps an eye on Uber’s surge pricing though, as that could become just as expensive as a cab fare.
    #betterbizmodelalwayswins
    #theconsumershavespoken!!

  3. Edmonton Taxi owner operator drivers who invested heavily $50, 000 – $225, 000 under existing bylaws are let down by Yegcc. Bottom line is if a greedy billionaire corporation got money they can break any commercial bylaws and they won’t have to face any consequences under current Yegcc. Look at Calgary Mayor Nenshi who stood to Uber bullying tactics and kicked out Uber within 3 weeks untill they follow Calgary bylaws. Uber continues to violate Alberta Traffic Safety Act and Yeg Taxi Bylaws ie. driving without commercial insurance and commercial driver licences Alberta Class 1,2 or 4. Unfortunately, 149 taxi drivers have been murdered on the job in Canada since 1912, that’s why taxis have driver safety features.

    To accommodate Uber City is compromising customer and driver safety.

    1. No more Clean AB 3 years Driver’s Abstract with less than 7 demerit points requirement.

    2. No regular 8 hours Defensive Driving Course

    3. No New Driver Training

    4. No mandatory mechanical inspection every 6 months.

    5. No Panic button & car based GPS.

    6. No safety shields

    7. No high resolution video cameras

    8. No emergency trunk release

    9. No maximum vehicle age

    10. No regulated fares

    11. No GST on Uber fares, why taxi drivers have to charge 5% GST on the fares and remit to Canada Revenue Agency regardless of their income & Uber doesn’t?

    12. No regulated vehicles for hire

    13. Yegcc has eliminated Limo minimum hourly rate of $75 to kill Yeg vibrant limo industry, so Uber Black Limo could start.

    Alberta Government; all vehicles for hire must have same type of commercial insurance! Edmonton taxi and limo drivers commercial insurance costs $6000 – $10, 000 per year, Uber drivers must carry same type of insurance for the public & driver protection!

    Mark my words Uber fever will be over within 2 years and all the public & driver safety regulations Yegcc sacrificed will be put in place back one by one!

  4. I’m absolutely disgusted that this city has chosen to throw all these cab drivers under the bus so to speak, just so people can save a buck or two. Theses Uber drivers don’t make any money and are essentially picking the pockets of the people that have played the game by the rules. Too often in this world the rules change unfairly so a few creeps can make a buck.
    This is just WRONG!!!!!!!!
    ps I do not have any affiliation with the cab industry.

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