Controversial ride sharing service Uber inched closer to victory in its quest to become legal in Edmonton on Tuesday.
City councillors approved the first reading of a proposed bylaw, which would create a new class of license to accommodate and legalize services like Uber. But final approval of the bylaw was deferred until end of January, while the authority does more “research and consultation”.
On the surface, the latest move means very little has changed. But by extending the consultation it looks increasingly likely that Edmonton is trying to find a way to make Uber legitimate, opening the door for new insurance and licensing policies.
That said, without going into detail, Uber claims that the current fee structure proposed by the council is too expensive and will force it to leave town.
Uber has been operating illegally in Edmonton since January, but in the face of consumer demand for the service, Edmonton has been looking for a way to make Uber legal and accountable. The key proposals in the bylaw call for Uber drivers to have specific commercial insurance policies and licensing, something which Uber has fought against.
Shortly after the proposed bylaw was published, Uber released a statement saying: “Unfortunately, City staff’s proposed revisions to the bylaw would force Uber to shut down in Edmonton. We are hopeful City Council will consider amendments that will keep ridesharing in the city as is desired by the vast majority of Edmontonians. We are starting a public awareness campaign on this issue asking local residents to reach out to their elected representatives to voice their support for expanded transportation options and smart regulatory solutions.”
Councillors now have until January 26 to mull over the bylaw, which suggests they are looking for a compromise to keep the business in Edmonton.
But the motion to make Uber legal has also not gone down well with the local taxi driver community, which are protesting the loss of business to a service they feel isn't regulated as strictly as licensed taxi driving.
Commentators on the Insurance Business Canada site are also less than enthusiastic about the service. Scott Meadwell wrote: “I can't fathom that the public is buying into this Uber business model. You could take ANY industry, have a business within it operate without taxation, social conscience, regulation etc.. and their service would be cheaper than their competitor and somehow people find that acceptable?
“This is precisely when government needs to step up to the plate, stop being bullied and lead in the best interests of society in general.”
