British Columbia's government has introduced long-awaited legislation that will pave the way for ride-hailing services in the province.
In a statement issued Monday, the Ministry of Transportation and Infrastructure said the bill could allow companies such as Uber and Lyft to enter the B.C. market as early as next year.
"Our government promised made-in-B.C. ride-hailing and today I'm proud to put forward the next steps to deliver it," Minister Claire Trevena told reporters Monday. "I'm excited about what these changes mean for people in B.C.: new, safe, convenient and modern options to get around."
Exactly when you'll be able to hop in an Uber, however, remains about as unclear as before the Passenger Transportation Amendment Act was announced.
That's largely because the Insurance Corporation of British Columbia has yet to develop a new insurance product that will cover Uber and Lyft drivers, a process that could take another year or more as the public auto insurer also contends with what the minister called a "horrendous" financial situation.
Trevena said she'd like to see ride-hailing vehicles on the road as soon as possible, but that fall of 2019 is a more "realistic" timeline for insurance to become available. That means it could be 2020 before the service is actually available.
"We are limited by insurance," she said. "Nobody is going to be on the road until there is an insurance product that works for them."
According to the act, those working for Uber or Lyft will also need a commercial Class 4 licence currently required for those who drive taxis and limousines. Drivers will also have to undergo a mandatory criminal record check before they can start working.
"If you're going to be earning money through driving people from place to place, you need to make that investment…so that you can show that you are safe," Trevena said. "It's got stricter limits on it and I think anybody who's getting in as a passenger wants to know the driver is as safe as possible."
When, where and how much?
If passed, the act would expand Passenger Transportation Board's authority so that it has control over which companies can enter the B.C. market, where they can operate and how much they can charge.
"PTB will be moving very quickly. They know there is a huge appetite here and we'll be making sure that applications move through quickly," Trevena said, adding that the board will take a data-driven approach in looking at where there is the greatest demand.
At the same time, the bill would limit the power of individual municipalities to restrict these aspects of the ride-hailing industry.
Monday's announcement quickly drew criticism from the Opposition.
Liberal Leader Andrew Wilkinson said the regulatory framework the NDP has put forward goes against the consumer-driven model that has made ride-hailing successful in other cities.
"What they've set up is a cumbersome, government-run bureaucracy for something that should be determined by market demand. The customer should decide how much supply is required. The customer should have an influence on pricing. Instead, what we have is a know-it-all NDP government," he said, adding that the NDP has created a "parallel to the taxi industry with a heavy government hand decided who gets to ride where and for what price."
Uber itself said the legislation is "a step forward," but one that "raises a lot of questions" about what ride-hailing will actually look like in the province.
Public policy manager Michael van Hemmen said the company has concerns about the proposal to allow the PTB to cap the number of cars a ride-hailing service can have on the road as well as the Class 4 licence requirement for drivers.
"That being said," he added, "Uber is 100 per cent committed to working with the NDP government and with Green and BC Liberal MLAs in order to find a path forward."
Stiffer penalties for rule-breakers
In addition to expanding the PTB's powers, the province has also recommended stiffer penalties across the taxi and ride-hailing industries for those caught operating outside the law. These include a $50,000 fine for non-compliance along with the possibility of suspending or even cancelling a licence.
A per-trip fee will be charged to help the province support "an adequate supply of accessible taxis."
What about the taxi industry?
During the 2017 election, Premier John Horgan campaigned on a pledge to bring ride-hailing to the province by the end of that year. But the government's most recent estimate, which came back in July, revealed that it might take until fall of 2019 for British Columbians to have access to the services—nearly two years later than the NDP's initial deadline.
Much of the delays have been caused by concern over the B.C. taxi industry's ability to compete with companies like Uber.
In October 2017, the government hired transportation industry expert Dan Hara to consult with stakeholders and help prepare the taxi industry for the introduction of ride-hailing.
Hara was also tasked with finding a "made-in-B.C." solution to the impasse caused by strict regulations at the provincial branch that licenses taxis and the government monopoly on auto insurance, which currently won’t cover vehicles used for ride-hailing.
In response to his recommendations, the board has implemented a "streamlined process" that the government says will allow cab companies to grow their fleets by as much as 15 per cent.
The board is also giving taxis the flexibility to lower metered fares during off-peak hours as of September 2019 in a bid to even the playing field with ride-hailing companies.
The province has appointed a special committee to "review and make recommendations on the effectiveness of the changes" outlined in the new act as they are rolled out.
The ministry said it expects applications for ride-hailing companies interested in entering the market by fall of 2019.
