海角社区官网city council has repealed a new law limiting the number of licences issued to ride-hailing drivers, after receiving secret legal advice that it was unlikely to withstand a court challenge from Uber.
At a meeting on Thursday, from Mayor Olivia Chow directing staff to resume issuing the licences, just two months after she led a surprise vote to cap them at current levels.
The licensing freeze isn’t off the table for good, however 鈥 council could reimpose it in March, when they’re scheduled to receive a city manager report that would consider ride-hailing’s impact on issues like transit use and pollution, and incorporate feedback from the industry.聽
Despite being forced into the climbdown, Chow made no apologies for pursuing stricter rules on the app-based companies, which entered the 海角社区官网market a decade ago and initially operated illegally.聽
She said the “current flood of drivers” working for app-based companies is worsening gridlock, generating emissions, and suppressing drivers’ wages by driving up competition. By some estimates Uber drivers earn about $8 an hour after their expenses are factored in.
“It鈥檚 about making sure that people coming here can find good jobs that can pay the bills, support their family, put food on their table,” Chow said.
Coun. Brad Bradford, who opposed the cap, said it was clear “council made a mistake” and “we are here today cleaning up that mess.”
He commended Chow for reconsidering the cap. But he argued the March deadline won’t give city staff enough time to consult with the industry and gather necessary data. Any resulting licensing limit could again be vulnerable to a legal challenge, he warned.
“I鈥檓 just asking that we undertake that massive pile of new work in a comprehensive and thoughtful way,” he said. His motion to have staff report back on the cap as part of a planned review at the end of 2024 was voted down.聽
Uber has said that limiting the number of drivers for so-called private transportation companies at current levels 鈥 about 52,000 鈥 increases prices for customers and deprives would-be workers of earning money.聽
In a statement after the vote, the company said lifting the cap would provide “temporary relief to the hundreds of thousands of Torontonians who use rideshare,” but the move was “only a short-term fix.”
Council approved the cap on Oct. 11 after Coun. Mike Colle introduced it without prior notice during a debate about transitioning the vehicle-for-hire industry to zero-emissions. The mayor lobbied councillors to support the proposal, which was expected to remain in place until at least the end of next year.
On Dec. 4, Uber filed an application with the Ontario Superior Court of Justice alleging that imposing the cap without consulting the industry violated council procedure, and the policy was “discriminatory” and enacted in “bad faith.”
In a confidential attachment that went to council this week, the text of which was obtained by the Star, city solicitor Wendy Walberg warned that because of its rushed implementation, Uber would be “likely to succeed” in getting a court to quash the freeze.
The attachment, which was first detailed by the 海角社区官网Sun, cited several legal issues, including the fact the zero-emissions report debated in October contained no evidence to support a limit on licences. It also said case law has emphasized council’s obligation to consult an industry before making decisions that could affect its business.
Walberg advised that council revoking the policy would “best protect” the city from the legal challenge. But pausing the cap’s implementation would at least “reduce the city’s legal risk.”聽
Uber said Thursday there was no longer a need for an injunction against the freeze, but it was consulting with legal counsel about its application.
Advocacy group RideFair said in a statement that it was “unfortunate that one company鈥檚 litigious bullying” caused council to reverse its decision. It warned lifting the cap opens the door to “choking congestion, emissions and driving drivers鈥 wages down even further just in time for the holiday season.”聽
Meanwhile, earlier on Thursday council approved an updated housing plan that members hope will finally result in the federal government releasing $471 million from its Housing Accelerator Fund.
Toronto鈥檚 application to the national fund was returned last month with a list of eight conditions federal Housing Minister Sean Fraser required the city to meet, including expanding where multiplexes are automatically permitted, increasing minimum density and height within walking distance to transit and cutting red tape on routine decisions.
Abi Bond, the executive director of the Housing Secretariat, said the city has developed a 鈥渃omprehensive work plan鈥 that will use the federal funding to meet those conditions.
The funding would be released in four equal installments over four years, starting at the end of this year, if the federal government approves of the city鈥檚 response. The final installment will only be released if the city has hit a target of building 11,780 homes in three years.
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