Uber expressed dissatisfaction with Toronto City Council’s recent decision to impose a temporary freeze on new ride-share licences for up to one year. The company cautioned that the move could lead to increased prices and extended waiting times for customers.
“Mayor [Olivia] Chow’s cap will ultimately hurt the diverse group of Torontonians who rely on rideshare as part of their transportation mix and those who drive rideshare for additional income, especially in a time of rising costs,” Uber Canada said in a statement on Oct. 11.
“There was no procedural fairness on the council floor today.”
Andrew Macdonald, senior vice president of mobility and business operations at Uber, called the decision a “misguided policy.”
In addition, he said the restriction hinders Canadians’ opportunities to make earnings amid an affordability crisis, particularly for new immigrants who have just arrived in Canada.
Ride-share company Lyft echoed this perspective.
“The Toronto Region Board of Trade is disappointed to see this policy implemented without consultation, any discussion with the business community, or even having the benefit of the forthcoming staff report on ride sharing due late next year,” it stated.
TRBOT noted that the number of ride-share drivers in Toronto has already decreased substantially in recent years, dwindling from 91,000 in 2019 to 52,000 at present. It underscored the pressing need to address congestion, but also noted that ride-sharing makes up just 3 percent of Toronto’s overall traffic congestion. Additionally, it said that this industry contributes about 1.3 percent to 2 percent of the city’s total emissions.
The company also noted that with ride-share demands on the rise following the COVID-19 pandemic, imposing a licensing cap at the present levels is expected to result in higher passenger fares and increased waiting times. Additionally, it would encourage drivers to concentrate in the busiest areas of the city, exacerbating congestion and reducing transportation options for residents living outside the city centre.
Meanwhile, Mayor Chow voiced support for Mr. Colle’s motion, saying it would increase the income of app-based workers by reducing competition and mitigating pollution. She justified the motion’s rapid adoption, saying that a prior announcement of the cap might have triggered a surge in licence applications.