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Although the BC government has passed legislation that will allow ridesharing companies to operate in the area, some experts believe the rules may result in a severely limited service.
Under the new rules, ridesharing drivers will need to secure Class 4 licences to operate in BC; this means that they have to pass criminal record checks and medical fitness checks every five years. Moreover, the rules could also put a cap on the number of ride-hailing cars on the road.
Transportation consultant Victor Ngo noted that Class 4 licences also require special insurance – insurance typically reserved for full-time taxi drivers – which could limit the number of drivers that can operate.
“One of the benefits of ride-hailing is it can attract different types of people, people who want to work a quick shift to make a few extra bucks, or want to be more full time. There is range of flexibility on what kind of positions they can take. With Class 4, it reduces that flexibility,” Ngo explained to CBC News.
On Monday, when the ridesharing legislation was passed, Transportation Minister Claire Trevena could not give an estimate for when the service will actually launch in the province, saying the province is “limited by insurance.”
CBC News reported that the Insurance Corporation of British Columbia (ICBC) will cooperate with the government, as well as the ridesharing and taxi industries in the creation of an insurance solution.
“ICBC will be ready to deliver the blanket insurance certificate, that we anticipate will be usage-based, when the various detailed amended regulations are in place,” the insurer said in a statement.
The ICBC’s statement comes as the Insurance Bureau of Canada (IBC) recently said that the insurer might not deliver a functional product in time. IBC Pacific vice-president Aaron Sutherland instead suggested that the province should open its market to private insurers, who are more than capable of providing coverage to ridesharing drivers.
