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Uber could be street legal by end of 2017

Taxi companies voice concern about announcement despite plan by Liberals to cut more ‘red tape’
taxi

The car you requested is approximately nine months away.

Ride sharing services will be picking up and dropping off in B.C. by the end of the year according to Minister of Transportation and Infrastructure Todd Stone, who announced what amounted to a legislative first draft Wednesday.

“It will be here in time for the holiday season in December, of course, that is assuming we’re fortunate to be entrusted with another four years through this election,” Stone said.

However, at least one observer dubbed the announcement: “an election-year stunt.”

“They kind of met some of our expectations but on the other hand failed most of it,” said North Shore Taxi general manager Moonyem Mohammad.

The taxi industry can be competitive if Uber and Lyft roll into B.C., according to Peter Fassbender, the minister responsible for TransLink.

Fassbender touted the province’s plan to provide cab companies $1 million to access “enhanced technology.”

That $1 million is a “waste of taxpayer money,” according to Mohammad, who noted there are already multiple apps connecting passengers with cabs.

The legislative plan gives taxis “exclusive rights” for street hailing and taxi stands, Fassbender noted.

“That will be, again, a competitive advantage,” he said.

But Mohammad differed, noting Uber drivers aren’t ordinarily hailed and don’t use stands as there’s no cash transaction.

Mohammad blasted plans to eliminate municipal boundaries for taxis, which he said might plug Vancouver’s downtown core while leaving Burnaby, Surrey, Richmond and New Westminster underserved on Friday and Saturday nights.

One of the most notable reductions in “red tape” Fassbender discussed Wednesday was the plan to do away with the Class 4 driver’s licence currently used by cab drivers.

That’s a “terrible idea,” according to Mohammad, who anticipated a rise in collisions and an accompanying jump in ICBC rates.

Many companies will be unable to compete with Uber, according to Mohammad.

If the phone stops ringing at North Shore Taxi, Mohammad predicted reductions among his 22 office workers. He also suggested cab drivers may slide into debt if they can’t recoup the large costs that come with getting a car and a licence.

His position was echoed by the Vancouver Taxi Association. If there is no restriction on taxi licenses, “there will be a free-for-all that will result in a situation where no one can make a living,” according to a release from the organization.

Mohammad agreed.

“I do applaud the decision of having background checks and vehicle inspection checks in place for all transportation companies. But it isn’t sufficient.”

The change is a “mixed blessing,” according to former Sunshine Cabs general manager Paul Gill, who advocated consolidation throughout the industry.

“There’s no need for us to compete with each other for various stands, it can be all one big industry throughout the Lower Mainland,” he said. “Service will get better … if it goes all into one dispatch system.”

While Uber may cut into profits, cab companies could dramatically cut overhead by getting rid of dispatch offices, he said. Gill suggested there could be one phone number connected to every cab company.

“And then it doesn’t matter whether it’s North Shore Cab or Sunshine … whichever is empty at the time will come.”

Wednesday’s announcement raised both expectations and questions, according to Nitesh Mistry, director of business operations for digital dispatch car service Ripe Rides.

“They’re definitely taking an approach to try to make sure … all of us can stay competitive if a bigger, multi-national were to enter the market,” he said.

The removal of “artificial municipal boundaries” should open up great opportunities for many companies, according to Mistry.

While ride sharing likely has a place in B.C., Uber may be less than a perfect fit, according to North Vancouver-Lonsdale NDP candidate Bowinn Ma.

“We know that Uber treats their drivers as independent contractors and regular working people (have) ended up being burned,” she said.

Ma emphasized the NDP is “open to ride sharing” but stressed protecting jobs.

“I don’t think bringing in more precarious jobs is appropriate,” she said.

The province’s legislation is in dire need of updating, according to Stone.

“The existing passenger transportation legislation … some would say hasn’t been significantly streamlined or modernized since the horse and buggy days,” he said.

It’s critical to harness technology and address the public’s desire for more choice, according to Stone.

Under the new rules, hired drivers must be at least 19 and have no convictions for violent or sexual offences.