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City Council has voted to stop issuing Uber Canada and Lyft licences until a staff report is completed by the end of 2024
Published Oct 12, 2023 • Last updated 5 minutes ago • 2 minute read
In this file photo taken on May 08, 2019 an Uber logo is seen outside the company’s headquarters in San Francisco, California. Photo by JOSH EDELSON /AFP via Getty Images
Toronto City Council’s decision to cap rideshare driver licences isn’t sitting well with Uber Canada or Lyft.
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Council voted on Wednesday to freeze the number of Uber and Lyft vehicles and not to issue any new licences to private transportation companies until a staff report is completed by the end of 2024.
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Driving this decision was managing greenhouse gas emissions.
“The City was directed by Council to implement a policy to maintain the net total of vehicle-for-hire and private transportation company driver’s licenses at no greater than current levels, as of October 12, 2023, with the exception of zero-emission vehicles,” Carleton Grant, the executive director of Municipal Licensing and Standards, said in a statement.
“This will be in effect until the City reports back on a comprehensive framework as directed by Council, including emissions, congestion and transit impacts, for the Vehicle-for-Hire industry and the appropriate licensing levels for taxicabs and limousine, as well as private transportation company vehicles.”
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Uber Canada said in a statement the cap will hurt both residents of the city and the company’s drivers, and its reviewing their legal options.
“Mayor 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.
“This will increase wait times and the cost of a safe and reliable transportation option for so many while important transit projects are delayed and the cost of purchasing a vehicle has increased almost 50% in four years. As the City’s own lawyer suggested, there was no procedural fairness on the Council floor (Wednesday) and preempts a study Mayor Chow’s own administration is undertaking. We will be reviewing all legal options.”
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Lyft added to the displeasure saying the freeze will increase fares and wait times.
“While Lyft supports electrifying our industry, instituting a licensing cap without any research into its implications is counterproductive and will do little to improve congestion downtown,” Lyft said in a statement.
“Toronto is still recovering from the impacts of the pandemic, and as demand for rideshare continues to rebound, a cap at current levels will inevitably drive up rider fares and wait times. It naturally pulls drivers into the city’s busiest areas, exacerbating traffic and limiting transportation options for those living outside the city centre.”
There were 52,409 active private transportation company drivers as of June 30, according to the city.
One group in favour of council’s decision was Ridefair who said in a statement: “City Council votes to pause licensing Uber and Lyft drivers until fleet optimization study concludes; pause translates into more money for drivers, fewer cars on the road and fewer emissions.”
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