Uber’s Waterloo, Ont., operation has been nothing short of controversial since it launched there in late July. The latest headlines came earlier this week when eight taxi drivers were fired after they were caught moonlighting for the ride-sharing service outside of work hours.
The city has proposed a new bylaw, however, that may address the public’s Uber concerns – particularly its inadequate insurance policies. If it makes it through a public consultation process, the regulations will now mandate that all taxis, whether designated as “metered” or “auxiliary,” carry $2 million in commercial liability insurance.
This is a welcome development for brokers, increasingly frustrated with Uber’s defiant stance on insurance.
“Two regulators have come forward – the Financial Services Commission of Ontario has issued a bulletin and Alberta’s Superintendent of Insurance has spoken out about this,” said Philomena Comerford, president and CEO of Baird MacGregor Insurance Brokers, in a previous interview with Insurance Business. “But every time something gets published, Uber will write back and say ‘Every ride is insured.’ I guess they think they know better than our regulators, which is a little bit astounding.”
While Comerford has publicly advocated that Uber drivers should obtain sufficient auto insurance coverage, she laments the fact that Uber would “force our industry to create new policies” instead of working with insurers to find a product that fits its needs and already may already be on the market in Canada.
“Uber is distancing itself from the fact that it’s a public vehicle operation, but you can’t have it both ways. If you’re an app company, license your app,” she said. “But let everybody go about regulating it and finding a way to keep it safe from an insurance standpoint.”
She notes that such government regulation as Waterloo’s bylaw will allow Uber to remain in line with the taxi industry on important public policy initiatives, such as accommodating vehicles to meet the Disability Act of Ontario.
Still, she wishes Uber would have collaborated with the industry instead of opting for its roundabout approach.
“Everyone is so romanced by technology that they end up bending themselves into pretzels to accommodate a new service that is flouting our laws,” she said. “I think we all would have appreciated if they came in politely and said, ‘how can we make ourselves compliant and not upset any regulators or municipalities.’”
