The true impact of Uber on the local taxi industry is about to be apparent.
The ride-sharing service has rolled out its UberX program to Waterloo Region, Guelph, Hamilton and London as of 2 p.m. Thursday.
“UberX is our low-cost, ridesharing option – connecting you with on-demand transportation,” an announcement on the Uber website said.
Uber is an app-based ride-sharing service, which connects people looking for transportation with interested drivers.
Fees for rides are set by the company, with payments made via credit card.
Local Uber passengers will be given up to four free rides before Sunday, the company said – provided none of those rides would typically cost more than $20.
The service has been met with controversy in many locations it has set up shop, with taxi drivers and some politicians typically warning of safety and other concerns.
Peter Neufeld, the president of Waterloo Taxi, said he wasn’t surprised to see Uber’s abrupt local arrival.
“This is what they’ve done in every other jurisdiction,” he said.
“They basically knock on the door – and if they’re not allowed in, they kick it in.”
More surprised was Waterloo Region Chair Ken Seiling – because regional officials had met with Uber representatives just the day before.
“They didn’t tell us anything about what was going on,” he said.
“It’s quite disappointing. This group said they would work with us … and suddenly they just unilaterally take off on their own.”
Prior to Thursday, the last word from regional transportation officials was that Uber use was considered illegal under the region’s taxi licensing bylaw, but the bylaw was being reviewed with an eye toward permitting ride-sharing.
For now, Seiling said, the region will take “no position” on the service’s legality.
What he would like to see is action from the province to set a uniform framework for Uber-type services.
Several American states have done something similar, taking away the possibility of different regulations for ridesharers and taxis in neighbouring municipalities.
“We want to have a level playing field for everybody,” Seiling said.
The City of Toronto is currently reviewing its own taxicab bylaw, having failed in an attempt to stop Uber through the court system.
Neufeld said he hopes the region will enforce its existing regulations.
He pointed to concerns about driver insurance and HST collection, as well as passenger safety.
In an email to CTV News, an Uber spokesperson said that drivers for its UberX service – the one launched locally – must undergo more rigorous background checks than those done for taxi or limo drivers.
“This screening process includes a national criminal record check, searches of local police databases and a thorough review of motor vehicle records as well as a vehicle inspection,” Susie Heath wrote.
Just before the service launched in Waterloo Region, Toronto taxi driver Dominik Konjevic announced the start of a $400-million class-action legal action against Uber.
Konjevic said he wanted the company to be barred from operating in Ontario.
Neufeld said he didn’t expect local drivers to join in on the action.
“There’s been talk about it, but that’s (for) down the road,” he said.
“We have to see where this goes.”
Hundreds of people have signed up as Uber drivers in Waterloo Region over the last few months, the company said.