Depending on who you ask, Uber is either a fantastic service; or spells the death to hard working taxi drivers. Today, it was announced that the City of Toronto passed legislation which will regulate Uber and other private ride sharing services such that they can operate in the Toronto without further political controversy (we hope).
In case you’ve never heard of Uber before, it’s essentially a taxi dispatch service; only taxi drivers don’t necessarily make the pick ups. The pick ups can be done by every day motorists trying to make an extra buck. Sounds simple enough. The controversy lies in that the taxi regime in the City of Toronto is complex, and heavily taxed/regulated.
In order to operate a taxi, you need to have a special taxi license. These licenses are very expensive, and aren’t just handed out loosely by the City. There are a limited number of taxi licenses around. In addition, licensed taxis have to follow other regulations like how much they can charge per kilometre, what the set base fare charge is, insurance regulations, driver safety regulations, camera regulations etc.
UberX drivers didn’t have to follow any of that red tape. All they needed to do was download the app, and let Uber dispatch them to their next customer for a pick up so they could earn money. It was that easy, and that convenient. The reality was that it was and remains fantastic for consumers. But it undercut hard working taxi drivers who were just trying to earn a living and provide for their families. Fewer fares. Increased competition. Uneven playing field. It was a hard fight and became difficult to compete with effectively cheaper, more convenient and arguably faster and more pleasant Uber service drivers.