In a surprise move, Mayor Olivia Chow has sent a plan to cap the number of Uber and Lyft drivers in 海角社区官网back to the drawing board, conceding a proposal staff spent the past year developing isn’t good enough.聽
In an extensive report released last week, city staff recommended limiting how many drivers could work for app-based ride-hailing companies at 80,429, the number licensed by the municipality as of Dec. 1. The plan was set to go to council for final approval next week, and Chow hadn’t signalled she wouldn’t back it.
But the recommendations 鈥 intended to address ride-hailing’s negative impacts on traffic, emissions, and public transit 鈥 immediately came under聽fire from the ride-hailing industry, taxi companies, drivers, and advocates, who alternately argued the plans went too far, didn’t go far enough, or contained too many loopholes.
After hearing from dozens of speakers who slammed the proposal at a meeting of her executive committee on Tuesday, the mayor acknowledged the plan needed more consideration.聽
“The staff did good work. They consulted, they spoke to a whole lot of people,” but聽“let鈥檚 give it another try, let鈥檚 see if we can do better,” she said.聽
A motion moved by the mayor and approved by the committee Tuesday made no mention of the proposed 80,000-driver limit, which she said “no one” was happy with.
Instead it referred the issue back to city staff, and requested they return with recommendations on a “dynamic licensing limit” that would take account of variables like congestion targets, customer wait times, the number of active ride-hailing drivers, and consultations with the vehicle-for-hire sector.聽
The motion also asked for options for how to reduce the impact of ride-hailing vehicles on congestion, accelerate the switch to zero-emissions vehicles, and create consumer protection measures such as providing transparency around “surge pricing” and regulating fares. Additionally, the motion suggested the Ontario government should play a bigger role, asking for recommendations for the province to step in with a “regional approach” to vehicle-for-hire licensing.
There’s no timeline for when staff will report back, meaning ride-hailing companies will continue to operate as they do now for the foreseeable future.聽
At Tuesday’s meeting, Uber drivers told the committee that under current conditions they can’t earn a decent wage聽鈥 an issue the mayor has said she cares deeply about. Some said the growing number of ride-hailing drivers on the roads was a major factor.
Vitaly Gofman said he has been driving for the company for 10 years, most recently full time. He said he’s seen his income dwindle so drastically he only made about $9,000 last year after expenses, and聽urged the committee to set the proposed cap at far below 80,000.聽
“To continue to support the current operation of Uber, it’s to put people into poverty,” Gofman said in an interview.聽
A concluded that聽when accounting for all the time ride-hailing drivers spend on the apps 鈥 not just “engaged time” driving for a fare 鈥 their median income earlier this year was just $5.97 an hour after costs such as fuel, insurance and repairs.聽
Councillors also heard from taxi drivers who accused the city of giving companies like Uber a free hand when they entered the market a decade ago, while imposing strict regulations that have strangled the cab industry. Other speakers criticized the proposed exemption to the ride-hailing cap for drivers of electric vehicles, which they warned would undermine efforts to fight congestion. Still more panned proposed changes to the city’s accessible taxi regime.
Uber had blasted the proposed cap as too restrictive, accusing the city聽of trying to impose new regulations on the ride-hailing industry聽鈥渨ithout any industry consultation or accurate data.鈥
Jake Brockman, senior manager of public policy at Uber, told the committee that the city’s own polling indicated a cap wasn’t supported by the majority of Torontonians. Reducing ride-share options would make it harder for suburban residents in particular to get around, he argued, adding that a licensing freeze would make it “harder for newcomers to 海角社区官网to access earning opportunities.”聽
In response to concerns about driver wages, the company says people choose the platform because it offers the “unparalleled flexibility” to control where and when they earn money. It also says it has been advocating for provinces to “modernize labour laws” for app-based work and supports Ontario legislation scheduled to come into effect next year that will set minimum earnings for engaged time that workers spend on the platforms.聽
Uber rejects the city’s $5.97 per hour earning figure as seriously flawed because it omits key data like trips across municipal boundaries, and says recent stats show its drivers take home $30.10 per hour of engaged time, not including tips.
Company spokesperson Keerthana Rang said in a statement Tuesday that Uber would review the committee’s decision closely. “As we head into the holiday season, Torontonians can be assured that safe, affordable, and reliable transportation options remain available at the touch of a button,” she said.
Coun. Brad Bradford (Ward 19, Beaches-East York), a vocal critic of the mayor’s, claimed in a statement that Chow had “punted” the ride-hailing issue.聽
“Since her election, Mayor Chow has made an ideological pursuit of a rideshare cap one of her top priorities. But like so many of her other priorities聽鈥 tearing down the Gardiner, saving Ontario Place, shutting down the island airport, or delivering a ‘modest’ property tax increase聽鈥 she has failed to deliver.”
This is the second time Chow has derailed a plan to limit the number of ride-hailing drivers.聽Last October, she led council in a surprise vote to approve a licensing freeze, but two months later was forced to rescind it after聽Uber filed a court challenge聽alleging it was enacted 鈥渂y ambush.鈥
Last week’s report was commissioned in response, and staff had stressed that it included extensive consultations and detailed research.
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