insurance and whether or not Uber passengers are covered in the event of an accident. Area taxi drivers must carry as much as $2 million in liability insurance, according to Robertson. Strosberg disputes the notion that UberX drivers and passengers have commercial insurance. “If you get into a UberX car and you’re involved in an accident, there is no insurance coverage,” mentions Strosberg. But, Heath says that every ride on the UberX platform in Canada is insured. “In the event of an accident during an UberX trip, ridesharing partners are covered by commercial auto insurance in addition to any coverage maintained by our driver-partner,” says Heath. “We have a well-established claims process and upon being notified, we work with our riders or partners on properly resolving any accident claim.” UberX is the lowest-priced of Uber’s five ride sharing options. The others are UberXL, which largely features minivans, Uberpool, which allows passengers to share rides and split the cost, Uberblack, which is designed for business clientele and Uberselect, which provides rides in luxury sedans. Uber was established in San Francisco in 2009 and has since spread to more than 300 cities across almost 60 countries, but it has been met with opposition almost everywhere it has launched. Rulings about its legality under existing taxi industry regulations have differed from jurisdiction to jurisdiction. While it has been accepted in some cities, it has been banned in others. In Montreal, for example, more than 400 vehicles used by Uber drivers had either been ticketed or towed through the first 11 months of last year and in Toronto, a similar initiative was conducted throughout 2015 and into 2016, which has resulted in 120 charges. These charges include operating a taxicab brokerage without a licence, entering into an agreement or arrangement with an unlicenced taxi driver and/or an unlicenced cab owner to provide dispatch services and allowing the use of a vehicle without it being approved by licencing staff. Heath said that ride sharing is regulated in more than 65 jurisdictions across North America and the company is making progress establishing similar regulations across Canada. “In Windsor, we have been pleased to see support from Mayor Drew Dilkens and look forward to continuing our work with him, city council and city officials, as part
Marwan Abouzeeni, a Vets Cab driver and Unifor Unit Chairman, left, and fellow driver Toufic AlHourani believe existing regulations should be enforced and spending $30,000 on a consultant’s report is a waste of time and taxpayer money. Photo by Dave Hall.
of our ongoing process as we move towards a new regulatory framework that embraces ride sharing,” says Heath. But, since initially welcoming ride sharing as a way of providing competition in the marketplace, Dilkens has tempered his support and now believes existing bylaws should be enforced while a consultant’s report is being prepared. “Instead of flip-flopping in the media, it is incumbent upon Mayor Dilkens to instruct his bylaw enforcement department to do something about it,” argues Strosberg. Windsor Police Services spokesman Const. Andrew Drouillard notes his department is working closely with city officials to develop a strategy for dealing with bylaw enforcement and other issues. “We are exploring a number of options and possibilities at the moment,” says Drouillard. “But, nothing is currently in place.” In the meantime, Robertson comments that his department will be meeting very shortly with other city officials to help select a successful proponent to conduct the consultation process, but it could take until early summer before the process is completed. Besides objecting to what he believes is Uber’s disregard of existing rules and regulations, Toth says that approving additional taxi licences in the city will impact a driver’s ability to make a living. “We currently have about 217 licenses in the city, which is based on our population base,” says Toth. “Introducing untold numbers of new taxis into the city will impact everyone’s ability to earn a living. As far as I’m concerned, Uber has shown no respect for the city, its Mayor, our drivers and the rules under which they are forced to operate.” Abouzeeni, as a driver and plateholder, says he must earn as much as $1,700 a month before he starts making any money because of various fees for plate leases, B IZ X M A G A Z IN E • F E B R U A R Y 2 0 1 6
dispatch services and insurance, not to mention gas. “Our drivers have been very patient throughout this whole process, but they are now getting nervous about their future and ability to earn a living,” says Abouzeeni. “We are all local drivers paying taxes in this city and working for a Windsorbased company and I don’t see why we are bending over backwards to accommodate an American company. For our drivers, this is how most of them make a living. It’s not something they do in their spare time.” Area cab companies have been largely silent on the issue over the past few months. Walt Bezzina, General Manager of Vets Cab, said his company has reserved comment because “we don’t wish to provide Uber with any more publicity than it has already received and secondly, we respect the decision by City Council to seek out a consultant to determine where we’re going next.” Sam Nizzer, Owner of both LaSalle Taxi and LA Taxi, echoed Abouzeeni’s comments, saying “we believe Uber should follow existing regulations and all we want is for our drivers to compete on a level playing field with the same rules, regulations and insurance requirements.” In the taxi industry, fares are also regulated. Uber fares are based on distance travelled and time spent travelling and are billed to a rider’s credit card. In Windsor, Uber charges a base fare of $3 in addition to 25 cents a minute and $1.10 per kilometre. There is a minimum fare of $4.50 and a $5 charge for a cancelled trip. Uber fares are competitive and comparable to those of traditional taxi services. But, there have also been complaints about the company’s policy of surge pricing which dictates fares based on supply and demand at peak times such as New Year’s Eve. Uber defends its policy by saying it ensures drivers are available in a timely fashion at such times. Traditional taxi companies do not use surge pricing, but wait times can be lengthy on busy days. Strosberg said his firm has just finished serving paperwork on Uber’s European entities and there is still a lengthy process to complete before the suit is certified as a class action and can proceed. But regardless of what changes, if any, are made to the city of Windsor’s public vehicle bylaws and how the lawsuit plays out, it’s safe to say that Uber and other ride sharing companies have changed the face of the global taxicab industry.
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