Markham’s Taxi Industry General Committee November 23, 2015 Kimberley Kitteringham, City Clerk Chris Alexander, Acting Manager of By-law & Regulatory Services Carlie Turpin, Public Services Coordinator 1
Agenda 1) Background 2) Current Municipal Act Regulatory Framework 3) Overview of Markham Taxi Industry 4) Disruptive Technology Overview 5) Jurisdictional Scan 6) Toronto Experience 7) Regulatory Options 8) Meeting with GTA Municipalities 9) Provincial Update 10) Interim Steps 11) Staff Recommendations 2
Background • At the September 21, 2015 General Committee meeting a Markham’s spokesperson for taxicab industry addressed Committee regarding concerns with Uber operations in Markham as well as: – The City’s taxicab training requirements – The proliferation of unlicensed taxicabs in Markham & lack of enforcement of same – The City’s licensing fees • General Committee briefly discussed Ontario's regulatory framework for the taxicabs & limousines. 3
Background • Staff noted that the emergence of Uber presents a complex public policy question that municipalities across Canada (& indeed the world) as well as organizations such as the International Association of Transportation Regulators (IATAR) are actively reviewing. • Staff advised that the City has held many consultation sessions with representatives of Markham’s taxicab & limousine industries over the past few years on a variety of issues, including fares, plate issuance & enforcement. At the conclusion of the September 21 st General Committee • meeting, staff were requested to report back on what measures Markham can take with respect to Uber given the current Municipal Act provisions. 4
Current Municipal Act Regulatory Framework • Under the Municipal Act, Ontario municipalities are permitted to pass by- laws with respect to owners & drivers of taxicabs to: – Establish the rates or fares to be charged for taxi services within a municipality or from any point in the municipality to any point outside of the municipality; – Provide for the collection of the rates or fares charged for the service; &, – Limit the number of taxicabs. 5
Current Municipal Act Regulatory Framework • Municipal by-laws cannot restrict, limit or prevent: – the transport of persons with physical, emotional or mental disabilities; or, – written contracts for the use of a taxicab which can legally operate in the municipality in which the transport begins or ends. • The Current Municipal Act framework is outdated & insufficient given: – the fact that the taxicab & limousine industries are no longer constrained to traditional borders; &, – the emergence of the sharing economy & disruptive technology. 6
Current Municipal Act Regulatory Framework • The past several years has seen the emergence of new models of consuming & accessing goods & services – this is often referred to as the “sharing economy” . • Companies such as Uber & Airbnb have been on the forefront of the sharing economy which enables individuals to obtain rides, accommodations & a wide range of other goods & services via online platforms in exchange for money &/or non-monetary benefits. • While these new platforms are popular with consumers & entrepreneurs, they have drawn significant criticism from established operators & concerns from governments about fair competition & consumer protection. 7
Current Municipal Act Regulatory Framework • The sharing economy has & is expected to continue to have, a significant global economic impact. • PWC Canada estimates the 2015 global revenue from sharing economy companies will reach $15 billion.** • Municipalities across Ontario, as well as associations such as the Association of Municipal Clerks, Managers & Treasurers of Ontario (AMCTO), have been calling upon the Province to update the legislation & to implement broader regulatory tools. ** Harnessing the Power of the Sharing Economy - Report produced by the Ontario Chamber of Commerce. 8
Current Municipal Act Regulatory Framework • The City of Markham is the regulator of Markham’s taxicab & limousine industry. • Our regulatory goals & objectives are as follows: 1. Public Safety & Consumer Protection • Safe & secure service for the public • Appropriate controls & accountability are developed & enforced 2. Quality of Service • High service levels in safe, clean & comfortable taxicabs • Knowledgeable & courteous drivers 9
Current Municipal Act Regulatory Framework 3. Availability of Service • Sufficient cabs to meet customer service demands • Ability to provide service in different forms to meet service demands 4. Reasonable Profitability of Service • Fair competition in the industry • Fair service for predictable price • Fair allocations of costs & profits throughout the industry 10
Markham’s Taxicab/Limousine Industry: Snapshot of Major Players • 192 municipally licensed taxicabs: – 140 regular taxicabs – 52 airport taxicabs • 30 municipally licensed limousines • Unknown number of “bandit” taxicabs • Unknown number of UberX vehicles for hire 11
Markham’s Taxicab/Limousine Industry: Snapshot of Major Players On Demand Service Prearranged Service 12
Markham’s Taxicab/Limousine Industry • There are a significant number of unlicensed vehicles for hire operating in the various communities in Markham. • This industry has existed for over a decade. • These “bandit” cabs take away as much as 50% of the business from the licensed taxicabs & limousine industries in Markham. • Typically these unlicensed operations work from internet & newspaper ads & strictly service their own communities. It is a sophisticated & organized operation that has been created. • The City does not yet have a full understanding of the impact Uber is having on Markham’s industry. 13
Markham’s Taxicab/Limousine Industry (Cont’d) • Owners & drivers of vehicles for hire (taxicabs & limousines) in Markham are required to comply with specific requirements in order to receive & maintain a City licence. • Like most By-laws of its kind in Ontario, Markham’s current Mobile Licensing Bylaw 2012-92 does not currently contain definitions for taxicabs, taxicab owners, taxicab brokers & limousine service companies that are comprehensive enough to encompass companies such as Uber. • By-law 2012-92 also does not currently contain a prohibition against the dispatching of vehicles operating under Transportation Networks like Uber. 14
Markham’s Taxicab Requirements • The City of Markham’s Mobile Licensing By -law 2012-92 requires the following criteria be met in order to obtain a taxicab licence: – 18 years of ago or older – Canadian Citizen, landed immigrant, or can provide a valid work permit – Valid Class “G” driver’s licence issued by the Province of Ontario – Driver’s Abstract from the Ministry of Transportation – Vulnerable Sector Screening for new applicants, Criminal Background Check yearly upon renewal – Medical Certificate stating applicant is fit to operate a motor vehicle – Driver training course 15
Disruptive Technology • The emergence of technology based companies is challenging established industries (transportation, retail, accommodation, service & labour and finance) & highlighting the need for them to adapt in order to compete. • With respect to taxicabs & limousines, regulators are faced with the challenge of updating regulations to be more reflective of the changing technological landscape & the transportation needs of the public. 16
Uber • Uber is an international, technology based, company that operates in 330 cities around the world connecting passengers with vehicles for hire, using a Smartphone application. – In 2012 Uber launched its Canadian operation in the City of Toronto providing licensed limousine service through its UberBlack application. – In 2013 Uber expanded its services to include UberTaxi using municipally licensed taxicabs. – In 2014 Uber launched their UberX service that connects passengers with unlicensed personal vehicles for hire. • Uber has since expanded into other Canadian jurisdictions including Montreal, Edmonton, Quebec City, Halifax, & most recently, Calgary. 17
Uber Taxi – How it Works • Municipally licensed taxi drivers register using the App by creating an account & they turn the App on when they are available for fares. • Users register by downloading the App, creating a profile, & attaching their credit card information . • Users request the UberTaxi option using the App & are provided with real time GPS tracking of all available UberTaxi vehicles in the vicinity. • Regular taxi fares apply – payment is cashless - done through the App. 18
Uber X - How it Works • Drivers register using the App by creating an account & they turn the App on when they are available for fares. • Users register by downloading the App, creating a profile, & attaching their credit card information. • Users request the UberX option using the App & are provided with real time GPS tracking of all available UberX vehicles in the vicinity. • UberX fares are flexible, “surge” pricing is in effect during high demand periods. 19
Recommend
More recommend
